WHEAT
General Comments: The markets were a little higher yesterday on slightly lower world markets. Minneapolis closed slightly lower. Egypt is moving its Wheat buying to a new agency that will close deals privately and make it harder to track Russian prices. It is something the Russian government wanted. 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 weaker offers in Russia and Argentina were negative for prices. Wheat farmers in the US can plant the Winter crops under good conditions. Australia has seen to much rain recently that has downgraded abut 4.0 million tons of production to feed instead of food. Australia still has a very big crop to sll into world markets.
Overnight News:
Chart Analysis: Trends in Chicago are down. Support is at 536, 530, and 5324 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 551, 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 lower after trading lower for most of the day. The trends are still mixed on the charts. 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 1538, 1544, and 1558 January.
CORN AND OATS
General Comments: Corn closed a little lower yesterday 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 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. Trading volumes are down and it feels like the holiday market is already here. Oats were higher 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 370, 366, and 361 March, and resistance is at 384, 394, and 406 March.
SOYBEANS
General Comments: Soybeans and Soybean Oil were lower yesterday as ideas of big south American production potential of Soybeans continue. Soybean Meal was higher on spreading against Soybean Oil. 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 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: China bought 136,000 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 287.00, 284.00, and 281.00 January, and resistance is at 294.00, 299.00, and 304.00 January. Trends in Soybean Oil are mixed. Support is at 4060, 3960, and 3780 January, with resistance at 4300, 4450, and 4640 January.
PALM OIL AND CANOLA
General Comments: Palm Oil was lower yesterday in response to ideas of weaker production and demand. It was higher today. 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 higher on a strong US Dollar. 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. Support is at 568.00, 554.00, and 548.00 January, with resistance at 596.00, 601.00, and 609.00 January. Trends in Palm Oil are mixed to up Support is at 5040, 4930, and 4800 February, with resistance at 5200, 5260, and 5320 February.More By This Author:Softs Report – Tuesday, Dec. 3Grains Report – Monday, Dec. 2Softs Report – Wednesday, Nov. 27