WHEAT
General Comments: All three markets closed lower again despite a weaker US Dollar as the tariffs were imposed on our biggest customers and are thought to be bad for prices and on fears that the US is entering a recession. Growing conditions ar3e dry around the world and in the US Great Plains. The fears of a US recession are the consequence of the Trump economic and political policies. Republicans are trying to mask the threat by taking the government losses out of the GDP, but the consumer confidence is waning and could become a source of real harm to the economy. The president is slated to make a speech to congress tonight and will try to revive support of his programs that are becoming very unpopular. It will be interesting and instructive to hear the reaction to the speech as it could directly affect agriculture.
Overnight News:
Chart Analysis: Trends in Chicago are down. Support is at 530, 524, and 518 May, with resistance at 552, 563, and 573 May. Trends in Kansas City are down. Support is at 540, 534, and 528 May, with resistance at 559, 569, and 582 May. Trends in Minneapolis are down. Support is at 576, 570, and 564 May, and resistance is at 591, 597, and 606 May.

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RICE
General Comments: Rice closed a little lower yesterday after trading lower earlier in the session Prices got remain cheap and could threaten planted area Export sales have not been strong, and domestic demand is there but is not strong enough right now to bid prices much higher. Milling yields have been called poor at 50 lbs instead of 55 lbs. The trends are still down the daily charts. Generally weak Asian prices are still reported. Brazil prices remain strong, but the difference is gone to world buyers as the Real is much lower against the US Dollar
Overnight News:
Chart Analysis: Trends are mixed. Support is at 1337, 1324 and 1312 May and resistance is at 1386, 1404, and 1415 May.

CORN AND OATS
General Comments: Corn closed lower and the carry spreads were weaker. Scattered showers and more general rains are in the Midwest forecast for today. The rains will help preserve strong yield potential although more will be needed soon. The overall market fundamentals are turning bearish. USDA increased planted area in its outlook conference ideas last week and the increas3e was in line with trade ideas. It also increased ending stocks estimates. The ideas were considered bearish for prices. The export demand in recent weeks has been very strong and it seems like some of the buying is in anticipation of the new presidential regime. President Trump has announced that new tariffs are being imposed as of yesterday on goods and services and some buyers may have made purchases already to avoid the potential for the tariff later. The US is also the major supplier to the world of Corn right now so the sales could hold relatively strong even with trade wars possible. It is now very cold in the Midwest so it will get harder for Corn buyers to convince farmers to sell. Argentina has cut its export tax rate on grains and oilseeds effective next week. Oats were higher as import tariffs were imposed on imports from Canada.
Overnight News:
Chart Analysis: Trends in Corn are down. Support is at 442, 434, and 433 May, and resistance is at 462, 467, and 482 May. Trends in Oats are up. Support is at 381, 374, and 371 May, and resistance is at 391, 400, and 412 May.

SOYBEANS
General Comments: Soybeans and the products closed lower in response to the big crops hitting the market from Brazil and as the tariffs were imposed on our largest customers on the export front yesterday. The tariffs have caused retaliation from our buyers and could hurt demand, especially from China and Canada. Consumer confidence is down and there are increasing worries that the US could be headed into a recession that could hurt domestic demand. The carry spreads were weaker. The fundamentals remain mixed to bearish.
Overnight News:
Analysis: Trends in Soybeans are down. Support is at 990, 980 and 977 May, and resistance is at 1020, 1041, and 1051 May. Trends in Soybean Meal are down. Support is at 291.00, 285.00, and 280.00 May, and resistance is at 297.00, 302.00, and 305.00 May. Trends in Soybean Oil are down. Support is at 4250, 4140, and 4080 May, with resistance at 4450, 4460, and 4530 May.

PALM OIL AND CANOLA
General Comments: Palm Oil closed higher today. Indonesia wants to use a blend of 40% of Plam Oil in its gasoline mixtures, but this has proved to be expensive and might need to be reduced and allow for increased exports. Demand from China has not been good and demand from India has been reduced. Ideas of weaker production caused by too much rain and reports of good demand provided support. Chart trends are down. Canola was lower along with Chicago. The d3mand outlook is uncertain with the threat of US tariffs being impos3d yesterday.
Overnight News:
Chart Analysis: Trends in Canola are down. Support is at 616.00, 600.00, and 590.00 May, with resistance at 630.00, 638.00, and 652.00 May. Trends in Palm Oil are mixed to down. Support is at 4440, 4350, and 4290 May, with resistance at 4550, 4620, and 4680 May.

Midwest Weather Forecast: Light rain and snow. Temperatures should average below normal.

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Softs Report - Tuesday, March 4
Grains Report - Thursday, Jan. 23
Softs Report - Wednesday, Jan. 22