WHEAT

General Comments: Winter Wheat markets were a little higher, but well off session highs. Cash market prices were reported to be steady in Russia and Egypt paid steady prices at its tender yesterday. USDA showed average sales in its weekly export sales report. The export demand has held together well despite the fact that US prices are high in the world market. Not all of the dry areas of the Great Plains got the rains and snow in the last week, but many areas did. Only parts of southeastern Colorado and southwestern Kansas are still too dry. Southern Russia could stay mostly dry. Eastern sections of Ukraine got a few showers and things are better there. Kazakhstan should stay mostly dry. Farmers in Russia and surrounding areas are not really selling much of the current crop due to fears about the production of the next crop. Less production is likely in Argentina due to drought, but the rains are good in some areas now. Eastern Australia is in very good condition. Western Australia should get some light rain this week. The Midwest is considered to be in mostly good condition. Much of Europe is in good condition.

Overnight News: The southern Great Plains should get dry weather. Temperatures should be above normal. Northern areas should see dry weather this week and showers this weekend. Temperatures will be above normal. The Canadian Prairies should see scattered showers. Temperatures should trend near to below normal.

Chart Analysis: Trends in Chicago are up with objectives of 635 and 660 December. Support is at 610, 607, and 598 December, with resistance at 626, 636, and 638 December. Trends in Kansas City are up with objectives of 583 December. Support is at 561, 550, and 546 December, with resistance at 582, 585, and 588 December. Trends in Minneapolis are up with objectives of 573 and 588 December. Support is at 567, 551, and 547 December, and resistance is at 576, 579, and 582 December.

RICE

General Comments: Rice was a little higher once again. The weekly USDA export sales report was not considered strong. 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. Export demand has been good in previous weeks and should generally stay that way as South America should not have much to offer this year. The harvest is mostly over in northern states with good field yields reported. Southern Louisiana and Texas are harvesting the second crop. Producers had to endure Hurricane Delta and then Zeta in Louisiana, and some of the second crop Rice got hurt. Quality is said to be very good everywhere.

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

Chart Analysis: Trends are mixed. Support is at 1234, 1223, and 1220 January, with resistance at 1250, 1257, and 1262 January.

CORN AND OATS

General Comments: Corn and Oats were a little higher on expectations for a Biden presidential victory that could create a new government and stimulus spending. Biden was still winning yesterday but by very narrow margins. Democrats did not take the Senate and gave back a little bit in the House. The chances for any stimulus to pass both chambers is small. The spending would help support a Cornmarket that could lose more ethanol demand due to the Coronavirus. The virus could cause lockdowns again and could keep people off the road, causing less demand for ethanol. USDA reported very strong sales in its weekly export sales report for corn. Some of those sales were known as Mexico bought a lot last week. US weather conditions are much improved this week with warmer and drier weather and the harvest is underway again. Yield reports have generally been good except for the drought and derecho areas of Iowa. It is dry in southern Brazil and northern Argentina to affect first crop Corn planting progress.

Overnight News: Unknown destinations bought 206,900 tons of US Corn.

Chart Analysis: Trends in Corn are up with objectives of 424 and 435 December. Support is at 404, 398, and 393 December, and resistance is at 422, 423, and 426 December. Trends in Oats are up with objectives of 3112, 322, and 331 December. Support is at 300, 296, and 291 December, and resistance is at 310, 312, and 316 December.

SOYBEANS AND PRODUCTS

General Comments: Soybeans and products closed higher on hopes for more Chinese demand with a Biden victory and on continued reports of dry weather in parts of South America. The weekly USDA export sales report was considered positive for prices. China has not appeared in the daily sales announcements from USDA in a couple of weeks but has been a buyer anyway. China still needs to buy for crushers but appears to have bought what was necessary for the reserve. Ideas are that a Biden victory would mean better intergovernmental relations with China and therefore increased demand for US Soybeans. The weather in the US is good for any remaining harvest as it has turned drier and warmer this week after a cold and wet week last week. The weather in South America is improved. Showers and rains have fallen in most of Brazil and much of Argentina. Southern Brazil and Paraguay have missed out on the good rains but did get a few showers. Soybeans are actively being planted in Brazil, but southern areas are still too dry as are parts of Argentina and all of Paraguay and Uruguay.

Overnight News: Unknown destinations bought 272,150 tons of Soybeans and China bought 132,000 tons of Soybeans. South Korea bought 30,000 tons of Soybean Oil.

Chart Analysis: Trends in Soybeans are up with no objectives. Support is at 1088, 1075, and 1063 January, and resistance is at 1112, 1124, and 1136 January. Trends in Soybean Meal are mixed to up with objectives of 405.00 December. Support is at 389.00, 380.00, and 375.00 December, and resistance is at 394.00, 397.00, and 499.00 December. Trends in Soybean Oil are up with objectives of 3650 and 3770 December. Support is at 3480, 3440, and 3400 December, with resistance at 3590, 3620, and 3650 December.

CANOLA AND PALM OIL

General Comments: Palm Oil closed lower on speculative long liquidation before the weekend. Ideas are that MPOB can show lower ending stocks this month. Chart trends are trying to turn up again. It is seasonally a time for trees to produce more due to more regular rains. Getting workers to do the harvest remains hard and the lack of labor has been a big problem. At least some of the plantation owners have asked for more migrant workers to cover the lack of workers that can be sourced locally. Canola was higher on the rally in Soybeans and products and despite a stronger Canadian Dollar. Palm Oil and Soybean Oil were both very strong yesterday. Harvest in the Prairies is almost done and yields are reported to be very strong.

Chart Analysis: Trends in Canola are mixed to up with objectives of 552.00 and 563.00 January.. Support is at 544.00, 540.00, and 533.00 January, with resistance at 553.00, 556.00, and 559.00 January. Trends in Palm Oil are up with objectives of 3260 and 3440 January. Support is at 3120, 3070, and 3030 January, with resistance at 3220, 3250, and 3280 January.