WHEAT
General Comments: The markets were lower last week on lower quotes for export Wheat from Russia and on much lower offer prices from Argentina. Tensions remined high between Ukraine, the US, and Russia. There was no news about the conflict seen in recent days to move markets. 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. 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 and Argentina 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 down. Support is at 542, 536, and 530 March, with resistance at 553, 563, and 571 March. Trends in Kansas City are down. Support is at 535, 529, and 523 March, with resistance at 545, 566, and 577 March. Trends in Minneapolis are mixed to down. Support is at 585, 578, and 572 March, and resistance is at 602, 608, and 613 March.DepositPhotos
RICE
General Comments: Rice closed a little higher last week in recovery trading, and the trends are still mixed on the charts, but are trying to turn up. 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 above 15.00/cwt.
Overnight News:
Chart Analysis: Trends are mixed. Support is at 1486, 1481, and 1457 January and resistance is at 1525, 1538, and 1544 January.
CORN AND OATS
General Comments: Corn closed a little lower last week as the US harvest wraps up and as demand remains strong. Mr. Trump announced new tariffs on Mexico that could total 25% and this news led in part to the decline. Mexico is the largest buyer of US Corn in the world. 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 lower as Canada is also looking at 25% tariffs imposed on exports to the US. The majority of the Oats consumed in the US comes from Canada.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 426, 423, and 418 March, and resistance is at 437, 442, and 445 March. Trends in Oats are mixed. Support is at 354, 351, and 348 March, and resistance is at 366, 374, and 379 March.
SOYBEANS
General Comments: Soybeans were a little higher last week on short covering and despite 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 products closed a little lower. Trump has proposed to bring tariffs to China that could raise the price of used cooking oil to levels unprofitable for US makers of bio fuels. A major competitor to Soy Oil for bio fuels would be removed. 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 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. The harvest should be wrapped up this week. 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: China bought 134,000 tons of US Soybeans.
Analysis: Trends in Soybeans are mixed to down. Support is at 974, 968, and 962 January, and resistance is at 1000, 1014, and 1020 January. Trends in Soybean Meal are mixed. Support is at 291.00, 290.00, and 287.00 January, and resistance is at 299.00, 304.00, and 310.00 January. Trends in Soybean Oil are mixed. Support is at 3950, 3870, and 4430 January, with resistance at 4300, 4450, and 4600 January.
PALM OIL AND CANOLA
General Comments: Palm Oil was higher last week in response to ideas of weaker production and on stronger Soybean Oil prices in Chicago. Futures were a little lower today. 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. 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 mixed to down. Support is at 568.00, 554.00, and 548.00 January, with resistance at 601.00, 609.00, and 625.00 January. Trends in Palm Oil are mixed to up Support is at 4820, 4730, and 4630 February, with resistance at 5060, 5140, and 5200 February.More By This Author:Softs Report – Wednesday, Nov. 27
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