WHEAT
General Comments: The markets were higher as short covering from speculators wa seen. World Wheat demand has been strong with Saudi Arabia buying over 800,000 tons of optional origin Wheat as tender results were announced early this week that likely to come from Russia, Europe, and perhaps South America. There has not been much demand in world markets for US Wheat. 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 steady to firm prices quoted in Russia and steady prices Argentina were around and helped keep the US market mostly steady in current ranges. Wheat farmers in the US planted the Winter crops under good conditions. Australia has seen too much rain recently that has downgraded Wheat quality, but Australia still has a very big crop to sell into world markets.
Overnight News:
Chart Analysis: Trends in Chicago are mixed to down. Support is at 528, 522, and 516 March, with resistance at 550, 554, and 561 March. Trends in Kansas City are mixed to down. Support is at 541, 535, and 528 March, with resistance at 557, 566, and 571 March. Trends in Minneapolis are mixed to down. Support is at 579, 572, and 566 March, and resistance is at 602, 606, and 6 March.DepositPhotos
RICE
General Comments: Rice started the day sharply lower on what appeared to be liquidation selling by market longs, then recovered the losses to trade a little higher late in the day. Commercials and speculators seemed to be on both sides of the market. The trends are down on the daily charts. Generally weak Asian prices are still reported. Brazil prices remain strong and well above US prices but the difference is now less to world buyers as the Real is much lower against the US Dollar.
Overnight News:
Chart Analysis: Trends are down. Support is at 1394, 1369, and 1356 January and resistance is at 1439, 1457, and 1486 January.
CORN AND OATS
General Comments: Corn closed higher yesterday on what appeared to be new buying tied to stronger weekly export inspections. 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. Oats were lower.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 441, 436, and 431 March, and resistance is at 448, 452, and 458 March. Trends in Oats are mixed. Support is at 339, 324, and 320 March, and resistance is at 350, 356, and 364 March.
SOYBEANS
General Comments: Soybeans and Soybean Meal closed lower yesterday despite a very strong weekly export inspections reports for Soybeans. Meal was weaker on spreads against Soybean Oil and posted a reversal on the weekly charts. Supplies are very large now and look to get even bigger with the coming South American harvest. Talk that President Trump wants to stop the use of bio fuels as part of his war on the green economy hurt demand ideas for Soybean Oil. The tariffs that Trump plans to impose could be a 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 have planted 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. Demand has been very strong so far this year, in part as many buyers try to get bought ahead of any new tariffs that the Trump administration might impose. Even so, supplies are very large and ending stocks projections for the USDA WASDE reports are a burden for prices.
Overnight News:
Analysis: Trends in Soybeans are mixed. Support is at 945, 938, and 926 January, and resistance is at 989, 1003, and 1014 January. Trends in Soybean Meal are mixed. Support is at 285.00, 278.00, and 272.00 January, and resistance is at 299.00, 304.00, and 309.00 January. Trends in Soybean Oil are down. Support is at 3880, 3780, and 3720 January, with resistance at 4100, 4200, and 4350 January.
PALM OIL AND CANOLA
General Comments: Palm Oil was a little higher today. Demand from China has not been good and demand from India has been reduced. Ideas of weaker production caused by too much rain and reports of good demand provided support. Chart trends are down. Canola was higher. The charts show that a low has been completed but that the rally off the lows has run out for now. Prices tested the breakout area higher and held last week, so the uptrend might be starting again. The harvest is over in Canada and the crops are locked away in the bin. Producers will try to wait for higher prices before selling much, especially with the cold weather in place now.
Overnight News:
Chart Analysis: Trends in Canola are down. Support is at 600.00, 584.00, and 577.00 January, with resistance at 619.00, 626.00, and 633.00 January. Trends in Palm Oil are mixed to down. Support is at 4290, 4170, and 4070 March, with resistance at 4540, 4650, and 4770 March.More By This Author:Softs Report – Monday, Dec. 23Grains Report – Wednesday, Dec. 18Softs Report – Monday, Dec. 16