WHEAT
General Comments: Wheat markets were lower yesterday as Chicago May finally started to trade. All short positions have had the chance to be liquidated now and the market is in a correction for at least the short term. It was a wild day with news reports from France that President Zelensky had proposed to not join NATO and offered Crimea and Donbas to the Russians in return for peace. The story was not confirmed but did send futures to limit down at one point. But, the war rages on and Wheat prices recovered and traded a little higher before closing a little lower for the day. Wheat prices might have topped out but should hold firm as Ukraine and Russia account for 30% or so of the worlds export trade. There could be more to come for this market longer term.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should average below normal. Northern areas should see isolated showers. Temperatures will average near to below normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average below normal.
Chart Analysis: Trends in Chicago are up with no objectives. Support is at 1209, 1164, and 1134 May, with resistance at 1324, 1363, and 1388 May. Trends in Kansas City are up with no objectives. Support is at 1203, 1158, and 1121 May, with resistance at 1300, 1312, and 1324 May. Trends in Minneapolis are up with no objectives. Support is at 1203, 1153, and 10122 May, and resistance is at 1226, 1238, and 1272 May.

Photo by Sandy Ravaloniaina on Unsplash

RICE
General Comments: Rice was lower again yesterday as traders prepared for the latest USDA WASDE reports. Selling came from ideas that the US is pricing itself out of the world market for Rice. The buying was due to the Russian invasion of Ukraine as the situation seems to get worse by the day and looks like it will take some time to resolve. The cash market is showing that domestic mill business is around everywhere in good volumes. Producer sales are reported to have been way ahead of average early in the marketing year so stocks on hand in first hands are reported to be lower than normal.
Overnight News: The Delta should get scattered showers. Temperatures should be near to below normal.
Chart Analysis: Trends are mixed. Support is at 1577, 1548, and 1543 May and resistance is at 1624, 1639, and 1689 May.

CORN AND OATS
General Comments: Corn closed mixed but mostly a little higher as Russia remains bogged down in its war with Ukraine. Russia is still advancing but the resistance from the Ukrainians is much more fierce than expected and the Russian army has been very surprised. There was a news report from France that Ukrainian president Zelensky had offered a peace deal to Russia that included no NATO membership and Russian control of Crimea and Donbas but this was not confirmed. The potential loss of Ukraine exports of Corn makes the world situation tighter and could be enough to keep Corn prices trending higher for now. Ukraine might not plant much if any Corn this Summer, too. Russia is also a Corn exporter and no product is moving from either country at this time Crop losses in South America are noted. Planted area there as well as in the US is in question due to the high costs and the lack of availability of inputs for growing a successful crop.
Overnight News: Colombia bought 100,000 tons of US Corn.
Chart Analysis: Trends in Corn are mixed. Support is at 726, 716, and 691 May, and resistance is at 760, 784, and 792 May. Trends in Oats are mixed. Support is at 613, 603, and 583 May, and resistance is at 626, 683, and 697 May.

SOYBEANS
General Comments: Soybeans and both products were higher yesterday as the South American weather became a market force again as exports from South America have been restricted and some buyers are moving to the US. The Ukraine war has supported Soybeans and world vegetable oils as Russia and Ukraine both export Sunflower Oil. The two countries account for about 80% of all world Sun oil exports. The US is now interested in curbing Russian exports as part of the sanctions and nothing is moving from either country as the companies effectively embargo themselves from doing business in either country. The world situation is still tightening as Brazil and Argentina are getting into the harvest of less Soybeans. Paraguay might import Soybeans this year from Argentina. Higher Soybeans prices are still possible due to the war and the overall supply and demand situation.
Overnight News: Unknown destinations bought 20,000 tons of US Soyban Oil.
Chart Analysis: Trends in Soybeans are mixed. Support is at 1650, 1634, and 1597 May, and resistance is at 1699, 1724, and 1759 May. Trends in Soybean Meal are mixed to up with objectives of 477.00, 496.00, and 504.00 May. Support is at 455.00, 443.00, and 436.00 May, and resistance is at 487.00 490.00, and 493.00 May. Trends in Soybean Oil are mixed. Support is at 7200, 7000, and 6820 May, with resistance at 7730, 7820, and 7940 May.

CANOLA AND PALM OIL
General Comments: Palm Oil was lower today on weaker US Soybean Oil prices and despite stronger Crude Oil futures and ideas of short world vegetable oil supplies due to the loss of 80% of the world Sunflower trade due to the war between Russia and Ukraine. Demand for export was stronger last month. Demand in Malaysia could improve soon as Indonesia is expected to keep most Palm Oil at home. Indonesia is once again making moves to cut the availability of Palm Oil for export as it seeks to keep more at home for bio fuels purposes. Traders are mostly worried about demand from India who has been buying Soybean Oil in the US instead of Palm Oil from Malaysia and Indonesia and is also worried about China and its demand for Palm Oil for bio fuels. Canola was higher once again on ideas of reduced Sunflower export potential from Russia and Ukraine due to the war. The market is worried about South American production as well. Canola chart patterns were much like those for Soybeans last week but the markets diverged yesterday. Trends in Canola are up again.
Overnight News:
Chart Analysis: Trends in Canola are up with objectives of 1131.00, 1144.00, and 1244.00 May. Support is at 1100.00, 1085.00, and 1055.00 May, with resistance at 1140.00, 1152.00, and 1164.00 May. Trends in Palm Oil are mixed. Support is at 6170, 6000, and 5810 May, with resistance at 6660, 7110, and 7180 May.