WHEAT
General Comments: The markets were higher last week as tensions remained high between Ukraine, the US, and Russia once again. The threat of war expanded with the US allowing longer range missiles to be used and as Russia is deploying North Korean soldiers alongside its own in battles. Russia also updated its nuclear use doctrine to include threats against it from the deployment of US missiles against Russian interests and shot seven ICBM missiles into Ukraine late last week. There were reports of stable price last week in Russia and the growing conditions in the US are very good. Reports of very beneficial rains for the Great Plains and Midwest and reports of weaker offers in Russia were negative for prices. The rains are falling and will allow Wheat farmers in the US to plant the Winter crops under good conditions.
Overnight News:
Chart Analysis: Trends in Chicago are mixed to down. Support is at 541, 526, and 521 December, with resistance at 559, 565, and 574 December. Trends in Kansas City are mixed to down. Support is at 544, 532, and 527 December, with resistance at 569, 580, and 583 December. Trends in Minneapolis are mixed to down. Support is at 575, 565, and 563 December, and resistance is at 597, 603, and 613 December.
RICE
General Comments: Rice closed a little higher last week and the trends are still up on the charts. However, current prices seem to be in a good spot right now with supply and demand seen about even at this time. Lower Asian prices are still reported. Brazil prices remain strong and well above US prices. The harvest is over now and the crops are being stored. Increased producer selling interest is likely at this time as futures have rallied.
Overnight News:
Chart Analysis: Trends are up. Support is at 1498, 1481, and 1457 January and resistance is at 1538, 1543, and 1556 January.
CORN AND OATS
General Comments: Corn closed a little higher last week and seems comfortable trading near to 430 December area as the US harvest wraps up and as demand remains strong. 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 ha 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 last week. Oats were mixed to higher. The Corn harvest is almost over and yield reports in general have been strong. It has been very dry in the Midwest to promote the very active harvest progress but it has turned wet in the last couple of weeks. The harvest will be complete once the rain moves out. Corn is being harvested with dry grain. The Corn is often well below 12% moisture level and this could cost some yield at the end of the day. Crop conditions in southern Brazil and Argentina with reports of ample moisture in southern Brazil and report of improving moisture levels in Argentina.
Overnight News: Mexico bought 454,090 tons of US Corn.
Chart Analysis: Trends in Corn are mixed to down. Support is at 422, 425, and 409 December, and resistance is at 433, 435, and 445 September. Trends in Oats are mixed. Support is at 336, 325, and 314 December, and resistance is at 354, 372, and 384 December.
SOYBEANS
General Comments: Soybeans and the products were lower last week on ideas of big south American production potential of Soybeans and Trump plans to curb the use of bio fuels order to promote more use of petroleum. 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 170 million tons for the country. Brazilian farmers are planting what is expected to be a very big crop in central and northern areas of the country. Warm and dry weather in the Midwest recently has hurt US production ideas due to ideas of small and very dry beans in the pods. Farmers have focused on Soybeans harvest but now are almost done and are almost done with Corn as well. It is currently raining in the Midwest so the last of the harvest will be delayed by at least a few days. Soybeans ae often harvested at moisture levels below 10% this year. Central and northern Brazil rains will continue as it looks like the rainy season is now underway. Soils are in much better shape in southern Brazil and Argentina.
Overnight News:
Analysis: Trends in Soybeans are mixed to down. Support is at 974, 968, and 962 January, and resistance is at 1000, 1014, and 1020 January. Trends in Soybean Meal are mixed to down. Support is at 285.00, 282.00, and 279.00 December, and resistance is at 293.00, 297.00, and 303.00 December. Trends in Soybean Oil are down. Support is at 4140, 4070, and 3950 December, with resistance at 4360, 4450, and 4630 December.
PALM OIL AND CANOLA
General Comments: Palm Oil was higher today in response to stronger outside markets. Demand from China has not been good. 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 lower along with Soybean Oil. The harvest is winding down in Canada and the crops are locked away in the bin. Producers will try to wait for higher prices before selling much.
Overnight News:
Chart Analysis: Trends in Canola are down. Support is at 578.00, 582.00, and 554.00 January, with resistance at 609.00, 625.00, and 633.00 January. Trends in Palm Oil are mixed to down. Support is at 4630, 4530, and 4430 February, with resistance at 4800, 4880, and 5060 February.More By This Author:
Grains Report – Monday, Nov. 25
