Weekly Ag Markets Update - Monday, Dec. 21

Weekly Chicago Soybeans Futures

Weekly Chicago Soybean Meal Futures

Rice: Rice was higher last week as trading reflected the lack of activity in the domestic cash market. The weekly export sales report featured strong demand from Venezuela and strong demand overall and caused futures to rally. Trading volumes have been less for the last couple of weeks. The cash market is slow and the lack of business is reflected in futures volumes traded. Reports indicate that domestic demand has been poor to average with better consumer demand more than offset by much less demand from schools and other institutions. Futures have ignored the bearish data from the monthly WASDE reports in the past week and a half.

Weekly Chicago Rice Futures

Palm Oil and Vegetable Oils: Palm Oil closed higher and made a new high weekly close. The market was supported late in the week by ideas of tight supplies coming down the road. Production of most vegetable oils in the world is less this year due to a lack of production of oilseeds. The production of Palm Oil is down in both Malaysia and Indonesia as plantations in both countries are having trouble getting workers into the fields. Palm Oil prices are relatively high right now so importers are looking at importing Soybean Oil instead due to cost and quality.  Soybean Oil and Canola were higher on strong demand ideas. Production problems for Soybeans in South America and a strike by workers at ports in Argentina helped Soybean Oil. Very strong Palm Oil prices have made buying Soybean and Canola oils the better option. Trends are up in Soybean Oil and in Canola. Demand for Canola has improved in recent weeks and farm selling has been less as farmers have reduced supplies.

Weekly Malaysian Palm Oil Futures

Weekly Chicago Soybean Oil Futures

Weekly Canola Futures

Cotton: Cotton closed higher again and made a new high close on the weekly charts again.USDA surprised the market over a week ago when it released its monthly supply and demand reports. The reports showed a significant drop in production of US Cotton and much reduced the US ending stocks levels. The reports were bullish and a move to the upper end of the 70 cents range is possible. Harvest is wrapping up amid drier weather conditions in West Texas and the Delta and Southeast. The weekly export sales report showed very strong demand once again last week. Export demand has held strong despite stay at home orders and weaker economies around the world. Traders now hope for even more demand later as the vaccines are given out and the world economies start to recover.

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