Photo by Tomasz Filipek on Unsplash
 

Wheat:

General Comments: Wheat markets were higher again yesterday and made new highs for the move by the end of the session. News that Russia had suspended its participation in the Ukraine grain export agreement met with the news that exports from Ukraine were still going on. Russia said that Ukraine sent drones out to harm its Black Sea fleet. The weekly export sales report showed stronger sales but the export demand has generally been poor until now. Ideas are that weak demand can continue due in part to the stronger US Dollar. The demand for US Wheat still needs to show up and right now there is no demand news to help support futures. The US central and southern Great Plains have been too hot and dry although there were some showers in the western Great Plains last week. Conditions are called good for the development of Winter Wheat in the Midwest.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should average above normal. Northern areas should see mostly dry conditions. Temperatures will average BOVE normal. The Canadian Prairies should see scattered showers. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are up with objectives of 920, 970, and 975 December. Support is at 873, 863, and 858 December, with resistance at 906, 946, and 950 December. Trends in Kansas City are up with objectives of 1018, 1029, and 1036 December. Support is at 960, 950, and 943 December, with resistance at 997, 1010, and 1037 December. Trends in Minneapolis are up with objectives of 993, 1000, and 1016 December. Support is at 971, 965, and 957 December, and resistance is at 993, 1001, and 1034 December.
 

Rice:

General Comments: Rice was sharply higher again yesterday on ideas the market was oversold and on spillover buying from the news that Russia wanted to suspend the grain export agreement with Ukraine. The price recovery has been remarkable over the last couple of days but some new selling might be found soon as futures and basis are now getting close to being profitable for producers to sell. Some selling was noted as shipping delays caused by the low river levels on the Mississippi and as the harvest pressure continued. Demand in general has been slow for Rice for both exports and domestic uses but export demand improved last week. The weekly charts show that trends are up.
Overnight News: The Delta should get scattered showers. Temperatures should be near to above normal.
Chart Analysis: Trends are up with no objectives. Support is at 1744, 1732, and 1725 November and resistance is at 1793, 1799, and 1805 November.
 

Corn And Oats:

General Comments: Corn and Oats closed higher again yesterday in response to news that Russia has suspended participation in the Ukraine grain export program put together by the UN. Russia says that Ukraine sent drones out to its ships in the Black Sea to attack. The Mississippi river is low due to the dry conditions seen in most of the central parts of the US and there are no forecasts for an improvement soon even with rain in the forecast for today. Barge traffic has been reduced. The cash market has been strong in the Gulf but weak in the Midwest river areas due to the low river levels. The demand side will need to be watched as Corn demand needs to hold to keep lower ending stocks estimates in play. There are increasing concerns about demand with the Chinese economic problems caused by the lockdowns creating the possibility of less demand as South America has much better crops this year to compete with the US for sales. Export demand in general has been slow so far this year.
Overnight News:
Chart Analysis: Trends in Corn are mixed up with objectives of 708, 711, and 716 December. Support is at 684, 674, and 672 December, and resistance is at 700, 706, and 708 December. Trends in Oats are up with objectives of 426 and 461 December. Support is at 381, 376, and 368 December, and resistance is at 400, 4010, and 420 December.
 

Soybeans:

General Comments: Soybeans and the products were higher as Brazil has a new president in Lula da Silva. He was the president before the current one and has now regained power. There have been protests that he won, mostly by truckers who had benefitted a lot from the policies of the former administration. Lula is also expected to be more environmentally conscious and that might mean fewer Soybeans down the road along with greater demand for Ethanol and other biofuels. The weekly export sales report for Soybeans was strong. Domestic demand should also be increasing for Soybeans as the crush spreads got richer and provided crushers with a big profit margin for their crushing Ideas are that Brazil is off to a very good start. The Mississippi river is low due to the dry conditions seen in most of the central parts of the US and there are no forecasts for an improvement soon. Barge traffic has been reduced. The trade is worried about demand due to a lack of Chinese interest caused by the Covid lockdowns there and in part by the stronger US Dollar. Brazil is still offering its old crop Soybeans, and South America as a whole is expected to produce a very big crop later this year for harvest next Spring as the weather outlook is positive for crops. However, the third year of La Nina as predicted by meteorologists could cut the production potential. US production ideas remain strong after mostly good weather in August. Basis levels are weaker in the Midwest but are strong at the Gulf. There are still Chinese lockdowns and there are fears that China has been importing less as a result. However, Chinese data showed huge imports from all sources in September. President Xi has been elected to a third term in China and has stocked the ruling body with his associates so there are fears that nothing will change soon there.
Overnight News:
Chart Analysis: Trends in Soybeans are up with objectives of 1463 and 1524 January. Support is at 1435, 1423, and 1409 January, and resistance is at 1465, 1481, and 1493 January. Trends in Soybean Meal are up with objectives of 434.00 and 454.00 December. Support is at 420.00, 418.00, and 415.00 December, and resistance is at 431.00 444.00, and 447.00 December. Trends in Soybean Oil are up with objectives of 7430 and 8260 December. Support is at 7240, 7110, and 67960 December, with resistance at 7460, 7580, and 7700 December.
 

Canola And Palm Oil

General Comments: Palm Oil futures traded higher today as the loss of Sunil exports from the Black Sea became more possible. Ideas are that supply and production will be strong, but demand ideas are now weakening and the market will continue to look to the private data for clues on demand and the direction of the futures market. Demand reports for the current month were stronger yesterday. Canola was higher yesterday along with the price action in Chicago and a sideways tone in the Dollar Index. The Canola harvest is about over. Reports indicate that domestic demand has been strong due to favorable crush margins. The Canola growing conditions are much improved and production estimates are higher for the year.
Overnight News:
Chart Analysis: Trends in Canola are mixed up with objectives of 898.00 and Support is at 873.00, 858.00, and 850.00 January, with resistance at 898.00, 904.00, and 910.00 January. Trends in Palm Oil are mixed. Support is at 4200, 3970, and 3890 January, with resistance at 4380, 42530, and 4850 January.

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