WHEAT
General Comments: Wheat markets were lower yesterday on reports that Russian and Ukrainian Wheat continues to move with good volumes being reported on the Black Sea and via land routes. Black Sea offers are still plentiful and Russian prices appear to be about 260.00 per tons FOB with Ukrainian prices about the same. 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 calmer situation. EU countries are offering as well and are getting new business. Demand has been poor for US Wheat as Russia production looks strong.
Overnight News: The southern Great Plains should get scattered showers. Temperatures should be above normal. Northern areas should see mostly dry conditions. Temperatures will average near normal. The Canadian Prairies should see scattered showers. Temperatures should average near normal.
Chart Analysis: Trends in Chicago are down with objectives of 591 March. Support is at 592, 568, and 562 March, with resistance at 612, 622, and 630 March. Trends in Kansas City are down with no objectives. Support is at 584, 572, and 560 March, with resistance at 612, 621, and 637 March. Trends in Minneapolis are mixed to down with objectives of 698 and 689 March. Support is at 699, 697, and 686 March, and resistance is at 720, 729, and 734 March.
General Comments: Rice closed lower again yesterday as chart patterns showed additional weakness could be coming. The trends are turning down on the daily charts. The Asian market remains strong with little on offer from India. Farmers appear quiet in the market and basis levels are reported to be steady, but industry and speculators have been busy. Most farmers are hunting and getting ready for the holidays and are not interested in Rice markets. Demand reports have been weaker lately and have featured traditional buyers in Latin America and Asia.
Overnight News:
Chart Analysis: Trends are mixed to down with no objectives. Support is at 1721, 1710, and 1707 March and resistance is at 1766, 1774, and 1785 March.CORN AND OATS
General Comments: Corn closed lower yesterday, and trends are down on the daily charts. Oats were higher. The market anticipates increased selling from US producers, but many have sold enough, and elevators and processors are reported to be full. There are also forecasts for a lot of snow for the Midwest to keep farmers inside and not opening the bins. Producers are also looking for higher prices now as crops are in the bin for the Winter. Ideas of weak demand are keeping prices low. The market feels that there is more than enough Corn for any demand and are not buying futures despite the improve demand. Showers have been reported in Argentina and in central and northern Brazil. Significant rains are forecast for central and northern areas. Up to one to three inches of rain are in the forecast for this week.
Overnight News:
Chart Analysis: Trends in Corn are down with objectives of 445 March. Support is at 450, 447, and 444 March, and resistance is at 464, 469, and 472 March. Trends in Oats are mixed. Support is at 351, 338, and 330 March, and resistance is at 364, 379, and 392 March.SOYBEANS
General Comments: Soybeans and the products closed lower yesterday on reports of better rains in Brazil. The precipitation is expected to continue this week. Up to three inches are in the forecast for central and northern Brazil, Soybean Meal was weaker on increasing confidence that Argentina will return as a major exporter and as US crushers are crushing for oil and have a lot of extra meal available. There are some forecasts for significant rains and rains this week in central and northern Brazil and less wet conditions in the south. The trade remains concerned about the weather forecasts for South America but is holding to ideas of production over 150 million tons. Our source suggests that production in Brazil could be much less due to the extreme weather seen already. Brazil has been 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.
Overnight News:
Chart Analysis: Trends in Soybeans are down with no objectives. Support is at 1236, 1224, and 1212 March, and resistance is at 1265, 1281, and 1296 March. Trends in Soybean Meal are down with objectives of 360.00 March. Support is at 365.00, 362.00, 3nd 359.00 March, and resistance is at 376.00, 381.00, and 386.00 March. Trends in Soybean Oil are mixed. Support is at 4700, 4660, a6nd 4620 March, with resistance at 4900, 5020, and 5170 March.CANOLA AND PALM OIL
General Comments: Palm Oil was slightly higher yesterday on ideas of improving demand for Palm Oil and as the weather situation is good for production. There had been concerns about too dry weather caused by El Nino. Trends are sideways on the daily charts and are sideways on the weekly charts. Canola was lower yesterday and closed at new lows for the move on a change in the Brazil weather forecasts. Current forecasts call for drier 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 down with no objectives. Support is at 610.00, 604.00, and 598.00 March, with resistance at 646.00, 656.00, and 665.00 March. Trends in Palm Oil are mixed. Support is at 3600, 3570, and 3540 March, with resistance at 3690, 3750, and 3790 March.Midwest Weather Forecast Mixed precipitation. Temperatures should average near to above normal.More By This Author:Softs Report – Friday, Jan. 5
Softs Report – Wednesday, Jan. 3
Softs Report – Tuesday, Jan. 2
