Wheat

General Comments: Winter Wheat markets were lower to start the day, but rallied to close a little higher on the back of stronger Corn futures. World prices have held steady or worked a little higher even with additional supplies available to the market as Russian prices remain elevated. Australian supplies have increased as its harvest is moving forward. US weather is mixed with still dry conditions in the western Great Plains but better conditions in the Midwest. Parts of eastern Ukraine and southern Russia are getting some showers too. These have been late to help much with the establishment but will help with soil moisture into the Spring. Western Australia's conditions are good after some rains. The demand has held well and world prices remain relatively high. The market in Russia has remained high on limited supply as farmers hold the Wheat back due to the drought.

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Overnight News: The southern Great Plains should get dry weather then scattered showers starting Thursday. Temperatures should be above normal. Northern areas should see mostly dry conditions or isolated showers. Temperatures will be above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.

Chart Analysis: Trends in Chicago are mixed. Support is at 574, 568, and 558 March, with resistance at 592, 600, and 608 March. Trends in Kansas City are mixed to down with objectives of 514 and 474 March. Support is at 536, 533, and 528 March, with resistance at 556, 559, and 569 March. Trends in Minneapolis are mixed to down with objectives of 537 March. Support is at 546, 543, and 537 March, and resistance is at 560, 564, and 570 March.

Rice

General Comments: Rice was higher in light volume trading. Trading reflected the lack of activity in the domestic cash market. 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. The harvest is over with good field yields and generally good quality reported.

Overnight News: The Delta should get mostly dry conditions. Temperatures should be near to above normal.

Chart Analysis: Trends are down with objectives of 1204, 1187, and 1175 January. Support is at 1221, 1220, and 1215 January, with resistance at 1230, 1240, and 1246 January.

Corn and Oats

General Comments: Corn was higher after trading lower at the start of the day. Corn did a reversal day on the charts yesterday. The South American weather is showing mixed trends. It has rained in Argentina and southern Brazil in the past week. Rains will now leave these areas and has moved north into central and southern Brazil. Meanwhile, it will turn warm and dry to the south and this is more consistent with La Nina. Drought could develop in southern Brazil and Argentina despite the rains this week as the overall weather patterns have been dry. The drought is especially serious in South America for the first Corn crop but the second crop could also be affected due to late planting in central and northern Brazil. Dry weather has delayed the Soybeans planting and that will delay the second Corn planting later. Farmers will not plant if it gets too late in the year as the rains will shut off before the crop gets mature.

Chart Analysis: Trends in Corn are mixed. Support is at 419, 414, and 409 March, and resistance is at 427, 430, and 436 March. Trends in Oats are up with objectives of 319 and 336 March. Support is at 315, 310, and 2305 March, and resistance is at 321, 324, and 327 March.

Soybeans and Products

General Comments: Soybeans and Soybean Oil closed lower on better rains in South America and the lack of Chinese demand for US Soybeans. Soybean Meal closed a little higher. China continues to buy in small amounts each day but has not appeared on the daily sales announcements in weeks. Production potential is being threatened in South America due to the lack of rainfall. The situation is most serious in central and northern Brazil but has improved in southern Brazil and Argentina due to recent rains. These rains have moved to the north. Southern Brazil and Argentina will now turn warm and dry and this will be much more consistent with the atypical La Nina pattern. The world will need very strong production from South America to meet the projected demand. The stocks to use ration for Soybeans is now very small and the situation is the tightest projected in years.

Chart Analysis: Trends in Soybeans are mixed. Support is at 1149, 1143, and 1138 January, and resistance is at 1174, 1182, and 1190 January. Trends in Soybean Meal are mixed. Support is at 380.00, 379.00, and 376.00 January, and resistance is at 392.00, 384.00, and 401.00 January. Trends in Soybean Oil are mixed. Support is at 3780, 3720, and 3660 January, with resistance at 3860, 3900, and 3930 January.

Canola and Palm Oil

General Comments: Palm Oil closed lower on weaker outside markets, especially petroleum futures. Futures were lower with competing vegetable oils as well today. 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, too, in both Malaysia and Indonesia. News that India had cut its import tariffs on Palm Oil supported the futures market, as well as good demand, is coming. Palm Oil prices are relatively high right now so importers are looking at importing Soybean Oil instead due to cost and quality. Canola were higher on strong demand ideas. Very high Palm Oil prices have made buying Soybean and Canola oils the better option. Trends are up in Canola. Demand for Canola has improved in recent weeks. StatsCan reported less production in its reports last week. Canola farmers have reduced selling by now so demand is chasing after fewer supplies.

Chart Analysis: Trends in Canola are up with objectives of 612.00 January. Support is at 587.00, 584.00, and 576.00 January, with resistance at 499.00, 601.00, and 604.00 January. Trends in Palm Oil are up with objectives of 3590 February. Support is at 3300, 3270, and 3240 February, with resistance at 3470, 3500, and 3530 February.

Midwest Weather Forecast: Mostly dry. Temperatures should average near to above normal