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WHEAT
General Comments: Wheat markets were mixed last week, with KRW lower but SRW and HRS higher. WRW was supported by a strong weekly export sales report tat featured sales to China that were at least as large as those seen in the daily reporting system. News that Argentina will restructure its economy with a shock devaluation of the peso and structural changes inside the country created ideas that farmers would sell, but it is unlikely they will sell right away and might be better off to wait and see a more calm situation. China has been a big buyer of US Wheat in the last couple of weeks and helped produce a big rally in the market. China has stopped buying for now and the market gave back about half the rally before finding its footing yesterday. Russia is still exporting and offering Wheat into the world market and is reporting that the crop is larger than originally thought. Ukraine and the EU countries are offering as well and are getting new business. Demand has been poor for US Wheat as Russia production looks strong, but exports are starting to increase.
Overnight News: The southern Great Plains should get scattered showers. Temperatures should be above normal. Northern areas should see scattered showers. Temperatures will average above normal. The Canadian Prairies should see scattered showers. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 603, 591, and 568 March, with resistance at 630, 653, and 670 March. Trends in Kansas City are mixed. Support is at 628, 620, and 612 March, with resistance at 658, 670, and 677 March. Trends in Minneapolis are mixed. Support is at 709, 699, and 692 March, and resistance is at 749, 763, and 768 March.RICE
General Comments: Rice closed a little higher last week in range trading. Farmers appear quiet in the market and basis levels are reported to be steady. Short term trends are mixed in this market. Demand reports have been solid to strong for the last couple of weeks and have featured traditional buyers in Latin America and Asia. The sales were very good last week again.
Overnight News: The Delta should get scattered showers. Temperatures should be above normal.
Chart Analysis: Trends are mixed. Support is at 1704, 1680, and 1667 January and resistance is at 1730, 1746, and 1757 January.CORN AND OATS
General Comments: Corn closed higher on news of stronger export demand. The Argentine government plans to devalue the peso and cut its value in half and to cut government spending. It also plans to raise taxes on Wheat and Corn and maybe cut taxes on Soybeans. Th market anticipates increased selling from producers there, but many may wit until the situation calms and that could take a while. Oats were higher. Ideas of weak demand are keeping prices low over all, but the weekly export sales reports have shown good demand for the last several weeks. The market feels that there is more than enough Corn for any demand and are not buying futures despite the improve demand. It is still hot and dry in central and northern Brazil and in Argentina although some showers have been reported in Argentina and in central and northern Brazil. Southern Brazil is still much too wet.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 477, 471, and 468 March, and resistance is at 489, 493, and 496 March. Trends in Oats are mixed to down with no objectives. Support is at 353, 338, and 330 March, and resistance is at 382, 392, and 402 March.SOYBEANS
General Comments: Soybeans and the products closed lower last week on some profit taking and despite less than expected rains in central and northern Brazil last week and forecasts for reduced rains this week. Too much rain was reported for southern Brazil again. There are some forecasts for scattered showers and rains this week in central and northern Brazil and still very wet conditions in the south. The trade remains concerned about the weather forecasts for South America. Brazil remains mostly hot and dry in northern areas and too wet in southern areas. Argentina crops are reported o be in good condition with enough moisture. These weather trends are expected to continue after next week. The market also heard that Argentina has devalued the Peso in a drastic way and plans to cut government spending in a major change for the economy there. Soybeans export taxes could be cut but Corn and Wheat taxes raised. The market anticipates an uptick in selling but might have to wait until the economy becomes more stable. Over a million tons of Soybeans were sold in two days late last week.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1292, 1270, and 1250 January, and resistance is at 1321, 1344, and 1352 January. Trends in Soybean Meal are mixed to down with objectives of 394.00, 384.00, and 379.00. Support is at 398.00, 388.00, and 387.00 January, and resistance is at 414.00, 418.00, and 422.00 January. Trends in Soybean Oil are mixed. Support is at 4820, 4590, and 4400 January, with resistance at 5200, 5360, and 5420 January.CANOLA AND PALM OIL
General Comments: Palm Oil held was lower last week. Palm Oil was lower along with weakness in Soybean Oil and on ideas of weaker demand for Palm Oil as the private sources reported improved demand for the month so far. Production was high in the MPOB reports but is expected to drop seasonally in future reports. Trends are sideways on the daily charts and are sideways on the weekly charts. Canola closed lower with Chicago Soybeans and the Argentine news. Current forecasts call for very wet weather in southern Brazil and wetter weather in central and northern areas this week. The Canola crop is harvested and it is in bins, so it will take some price movement to get new farm sales. Trends are down on the daily charts in this market.
Overnight News:
Chart Analysis: Trends in Canola are mixed. To down with no objectives. Support is at 636.00, 630.00, and 624.00 January, with resistance at 663.00, 678.00, and 682.00 January. Trends in Palm Oil are mixed to down with objectives of 3660 and 3a580 March. Support is at 3670, 3650, and 3600 March, with resistance at 3780, 3810, and 3850 March.More By This Author:
Grains Report – Monday, Dec. 18
