WHEAT

General Comments: Wheat closed mixed yesterday on some speculative buying tied to ideas of new Chinese demand. The market expected to see increased ending stocks estimates but the increase in ending stocks on the US and world data were much larger than anticipated.  US ending stocks were estimated at 901 million bushels and world stocks were estimated at 271.4 million tons.  The Trump administration keeps talking up the potential Chinese demand.  There has been no new China demand news or rumors and the weekly export inspections were down.  The weekly USDA reports have started again but USDA is currently releasing old data and not current sales.  Southern hemisphere crops appear to be good.

Chart Analysis: Trends in Chicago are mixed to up.  Support is at 537, 524, and 517 December, with resistance at 555, 560, and 573 December.  Trends in Kansas City are mixed.  Support is at 513, 506, and 501 December, with resistance at 540, 545, and 548 December. Trends in Minneapolis are not available.

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RICE

General Comments: Rice was a little lower again yesterday.  Ideas are that the market is too cheap and that farmers have sold what needs to be sold for now.  The recent selling has been to be relentless and appears tied to the weaker prices in Asia and especially India.  Trends are down in the market.  The harvest is wrapping up in the delta and Mid South.  California is also about done with its harvest.  Yields and quality are mixed, but quality appears better than a year ago.  The cash market has been slow with low bids from buyers in domestic markets and average or less export demand.

Chart Analysis: Trends are mixed.  Support is at 1020, 1012, and 1000 January and resistance is at 1068, 1074, and 1086 January.

CORN AND OATS

General Comments: Corn was a little higher yesterday on ideas and reports of strong export demand.  Trends are now mixed in the market.  The weekly export sales report from late September showed that Corn demand held strong.  USDA will issue additional reports this week.  The harvest is winding down in all areas of the Midwest.  There are ideas that US production might not be super strong due to disease such as rust to offset the demand losses.  Temperatures should average near to above normal this week and there are forecasts for some rain early this week.  Oats were higher last week.

Chart Analysis:  Trends in Corn are mixed.  Support is at 429, 425, and 422 December, and resistance is at 442, 450, and 456 December.  Trends in Oats are mixed to up.  Support is at 302, 297, and 292 December, and resistance is at 316, 324, and 338 December.

SOYBEANS

General Comments: Soybeans and the products were a little lower after an early rally failed yesterday on reports of new Chinese demand.  China bought 972,000 tons this week. China is almost done with purchases for this year and as the US will have to compete with South America for sales in a diminishing Chinese market.  The Chinese hog herd is being reduced and this means less demand for Soybeans and Soybean Meal.  Forecasts call for light precipitation to be seen in the Midwest.  Temperatures will average near to above normal this week.  Export demand remains less for US Soybeans as China has been taking almost all the export from South America due to the Trump tariff regime.

Overnight News:  China bought 330,000 tons of US Soybeans.

Analysis:  Trends in Soybeans are up.  Support is at 1130, 1114, and 1103 January, and resistance is at 1172, 1184, and  1196 January.  Trends in Soybean Meal are mixed to up.  Support is at 320.00, 316.00, and 311.00 December, and resistance is at 331.00, 337.00, and 343.00 December.  Trends in Soybean Oil are mixed to up.  Support is at 5070, 4980, and 4900 December, with resistance at 5280, 5390, and 5480 December.

PALM OIL AND CANOLA

General Comments: Palm Oil futures were a little higher today in sympathy with the price action in Chicago.  Futures reacted to the stronger Ringgit and weaker Chicago prices late in the week and MPOB data from early in the week that showed less than expected ending stocks for the month.  There was some buying seen on Indonesian plans to increase the use of Pam Oil in biofuels blends.  There are ideas of increasing supplies, but those ideas are now turning as production enters a seasonal slowdown.  There are still ideas of increasing production.  The market sentiment overall is turning bearish on ideas of increasing stocks to the market and on some concerns about demand Canola was a little higher.  Trends are mixed on the daily charts and are turning up on the weekly charts.

Chart Analysis: Trends in Canola are mixed to up.  Support is at 644.00, 636.00, and 632.00 January, with resistance at 661.00, 671.00, and 680.00 January.  Trends in Palm Oil are mixed to up.  Support is at 4160, 4110, and 4070 February, with resistance at 4250, 4300, and 4370 February.

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