WHEAT
General Comments: The markets were mixed yesterday in consolidation trading and chart trends are turning up. The USDA reports were not bullish to Wheat as plantings were higher than trade expectations as were world ending stocks estimates. World Wheat demand has been strong, but there has not been much demand in world markets for US Wheat. 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 up. Support is at 539, 529, and 526 March, with resistance at 552, 555, and 561 March. Trends in Kansas City are mixed to up. Support is at 538, 535, and 528 March, with resistance at 568, 571, and 577 March. Trends in Minneapolis are mixed. Support is at 587, 578, and 572 March, and resistance is at 598, 601, and 606 March.DepositPhotos
RICE
General Comments: Rice closed higher again yesterday in continued speculative and some new commercial buying. Farmers have not been selling and the market needs the Rice. There are some questions about the milling quality of the new crop Rice and that will help keep demand from mills for good Rice stronger than it might have been. The trends are up the daily charts. Generally weak Asian prices are still reported. Brazil prices remain strong, but the difference is gone to world buyers as the Real is much lower against the US Dollar.
Overnight News:
Chart Analysis: Trends are up. Support is at 1454, 1434 and 1423 March and resistance is at 1474, 1500, and 1516 March.
CORN AND OATS
General Comments: Corn closed a little higher yesterday. The overall market fundamentals remain bullish but might be part of the price for now. USDA surprised the market by cutting yield estimates by 3.8 bushels per acre and production to just 14.867 billion bushels. The yield and production estimates were below all trade guesses. US ending stocks were equal to the lowest trade estimate at 1.540 billion bushels. 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 later. It is now very cold in the Midwest so it will get harder for Corn buyers to convince farmers to sell. Oats were higher.
Overnight News: Taiwan bought 135,000 tons of US Corn.
Chart Analysis: Trends in Corn are up. Support is at 460, 457, and 453 March, and resistance is at 479, 483, and 489 March. Trends in Oats are up. Support is at 335, 333, and 329 March, and resistance is at 356, 365, and 369 March.
SOYBEANS
General Comments: Soybeans closed lower as follow through buying tied to the response to the USDA production reports ran out of steam. The fundamentals remain mixed to bearish. Soybeans were higher in response to bullish US production estimates released by USDA. It estimated yield a full bushel less than last month and production at 4.36s6 billion bushels. Ending stocks were estimated at 380 million bushels. Both estimates from USDA were well below the lowest trade guess. 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 last 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. Soybeans are offered cheaper in South America now.
Overnight News: China bought 132,000 tons of US Soybeans.
Analysis: Trends in Soybeans are up. Support is at 1028, 1019, and 1009 March, and resistance is at 1064, 1075, and 1079 March. Trends in Soybean Meal are mixed. Support is at 302.00, 295.00, and 292.00 March, and resistance is at 310.00, 315.00, and 321.00 March. Trends in Soybean Oil are up. Support is at 4480, 4370, and 4310 March, with resistance at 4710, 4790, and 4940 March.
PALM OIL AND CANOLA
General Comments: Palm Oil was lower today on weaker outside markets. Indonesia wants to use a blend of 40% of Plam Oil in its gasoline mixtures, but this has proved to be expensive and might need to be reduced and allow for increased exports. 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 lower along with the price action in Chicago. The market is holding above the December highs in part due to the bullish USDA reports. 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 mixed. Support is at 617.00, 610.00, and 603.00 March, with resistance at 640.00, 648.00, and 656.00 March. Trends in Palm Oil are mixed to up. Support is at 4140, 4100, and 4020 April, with resistance at 4440, 4480, and 4530 AprilMore By This Author:Softs Report – Wednesday, Jan. 16
Grains Report – Monday, Jan. 13
Softs Report – Friday, Jan. 10