WHEAT
General Comments: The markets were lower yesterday in all three markets after USDA showed poor export demand in the weekly reports. Tensions remined high between Ukraine, the US, and Russia. The growing conditions in the US are very good. Reports of very beneficial rains for the Great Plains and Midwest and reports of steady prices quoted in Russia and Argentina were around and helped keep the US market steady in current ranges. Wheat farmers in the US planted the Winter crops under good conditions. Australia has seen too much rain recently that has downgraded Wheat quality, but Australia still has a very big crop to sell into world markets.
Overnight News:
Chart Analysis: Trends in Chicago are mixed. Support is at 553, 550, and 543 March, with resistance at 571, 577, and 584 March. Trends in Kansas City are mixed. Support is at 551, 544, and 535 March, with resistance at 577, 591, and 597 March. Trends in Minneapolis are mixed. Support is at 593, 586, and 585 March, and resistance is at 613, 625, and 634 March.
RICE
General Comments: Rice closed a little lower again yesterday and the holiday market seems to be underway. The trends are still mixed on the charts. Generally weak Asian prices are still reported. Brazil prices remain strong and well above US prices.
Overnight News:
Chart Analysis: Trends are mixed. Support is at 1486, 1481, and 1457 January and resistance is at 1538, 1544, and 1558 January.
CORN AND OATS
General Comments: Corn closed lower yesterday as the US export demand was a little less in the weekly reports. Farmers were sellers along with speculators. The export demand in recent weeks has been very strong and it seems like some of the buying is in anticipation of the new presidential regime starting here in January. President Trump has promised new tariffs on goods and services and some buyers may be making purchases now to avoid the potential for the tariff at a later date. There were no sales announcements in the daily reports from USDA in the last week. Oats were higher.
Overnight News:
Chart Analysis: Trends in Corn are mixed to up. Support is at 442, 436, and 431 March, and resistance is at 452, 455, and 488 March. Trends in Oats are mixed to down. Support is at 348, 339, and 332 March, and resistance is at 370, 374, and 376 March.
SOYBEANS
General Comments: Soybeans and Soybean Oil were slightly higher on strong weekly and daily export sales. The tariffs that Trump plans to impose could be another detriment to sales of all products. Brazil looks to produce much more than a year ago and some estimates range as high as 175 million tons for the country. Brazilian farmers have planted what is expected to be a very big crop in central and northern areas of the country. Warm and dry weather in the Midwest this year has hurt US production ideas due to ideas of small and very dry beans in the pods. Soybeans are often harvested at moisture levels below 10% this year. Central and northern Brazil rains will continue. Soils are in much better shape in southern Brazil and Argentina.
Overnight News: Unknown destinations bought 200,000 tons of US Soybeans.
Analysis: Trends in Soybeans are mixed to down. Support is at 974, 968, and 962 January, and resistance is at 1003, 1014, and 1020 January. Trends in Soybean Meal are mixed. Support is at 284.00, 281.00, and 278.00 January, and resistance is at 294.00, 299.00, and 304.00 January. Trends in Soybean Oil are mixed to up. Support is at 4100, 4070, and 3960 January, with resistance at 4350, 4450, and 4640 January.
PALM OIL AND CANOLA
General Comments: Palm Oil was a little lower today on light volume selling seen before the weekend. Demand from China has not been good, but demand from India has been seasonally strong. Ideas of weaker production caused by too much rain and reports of good demand provided support. The private surveyors have indicated that exports have been weaker so far this month. Canola was a little lower on reports of speculative profit taking on long positions. The charts show that a low has been completed in recent days. The harvest is over in Canada and the crops are locked away in the bin. Producers will try to wait for higher prices before selling much, especially with the cold weather in place now.
Overnight News:
Chart Analysis: Trends in Canola are up. Support is at 596.00, 585.00, and 577.00 January, with resistance at 626.00, 633.00, and 643.00 January. Trends in Palm Oil are mixed to up Support is at 4800, 4740, and 4630 February, with resistance at 5020, 5080, and 5180 February.Midwest Weather Forecast Mostly dry. Temperatures should average below normal.More By This Author:
Grains Report – Friday, Dec. 13
