General Comments: Wheat markets were lower in part on fund selling due to a weaker than expected weekly export sales report. The demand for US Wheat dropped off with sideways to higher prices in futures. Futures have been higher recently as the threat of Winterkill in the western Great Plains appeared for the past week. Temperatures dropped below 0F in many areas and that is cold enough to kill an unprotected crop. The actual damage will take some time to see under warmer temperatures and it might take until harvest to see the full effects of the recent extreme cold. Chart trends are still sideways but there is an upside bias showing.
Overnight News: The southern Great Plains should get scattered to isolated showers. Temperatures should be near to below normal. Northern areas should see scattered to isolated showers. Temperatures will be near to below normal. The Canadian Prairies should see scattered showers. Temperatures should average near to below normal.
Chart Analysis: Trends in Chicago are mixed to up with objectives of 703 and 734 May. Support is at 663, 648, and 642 May, with resistance at 688, 691, and 697 May. Trends in Kansas City are mixed to up with objectives of 678 and 700 May. Support is at 640, 626, and 616 May, with resistance at 664, 670, and 676 May. Trends in Minneapolis are mixed to up with objectives of 671 and 693 May. Support is at 641, 635, and 628 May, and resistance is at 659, 662, and 668 May.
General Comments: Rice was lower and futures remained locked in a sideways trend. The export sales report showed less sales overall, but still was fairly strong. Venezuela was the big buyer of Long Grain. The cash market has not felt any increased demand lately and mill operations are reported to be on the slow side. Exports had been strong until recently and were moderate last week. Texas is about out of Rice, but there is Rice available in the other states.
Overnight News: The Delta should get isolated showers. Temperatures should be below normal.
Chart Analysis: Trends are mixed. Support is at 1303, 1290, and 1273 May, with resistance at 1315, 1326, and 1335 May.
CORN AND OATS:
General Comments: Corn and Oats were higher in overnight trading on South American weather, but failed during the day on a weaker than expected export sales report. Funds and other speculators were reported to be the best sellers. It has rained in central and parts of northern Brazil in the last week, but farmers were able to harvest Soybeans and plant the Winter Corn around the precipitation. Southern Brazil and Argentina are now drier and Corn in Argentina could be stressed. The main crop harvest has started in parts of Brazil, but progress will be slow due to the late planting dates due too dry conditions earlier in the year. The second crop of Corn planting is also being delayed and yield estimates for South American Corn have been reduced.
Chart Analysis: Trends in Corn are mixed. Support is at 540, 530, and 523 May, and resistance is at 558, 572, and 578 May. Trends in Oats are mixed to up with objectives of 386 and 412 May. Support is at 355, 351, and 349 May, and resistance is at 368, 373, and 376 May.
General Comments: Soybeans and the products were lower after trading higher in the overnight session on South American weather concerns. Selling came on the weaker than expected weekly export sales report and on ideas that the impending Brazil harvest will kill current demand for US Soybeans. Funds and other speculators were reported to be the best sellers. The northern Brazil harvest has been delayed due to late planting dates early due to dry weather and now too much rain that has caused harvest delays and some quality problems as well. Rains are coming to an end in some areas but the harvest progress remains far behind normal. Even so, prices and basis quotes from Brazil are well below those of the US for nearby export. China has been buying for this year and next year here but also in South America. The strong demand for exports and for domestic use means there is little room for error and that the US could even come close to running out of Soybeans to sell.
Chart Analysis: Trends in Soybeans are mixed to up with objectives of 1465 and 1538 May. Support is at 1399, 1368, and 1337 May, and resistance is at 1446, 1458, and 1470 May. Trends in Soybean Meal are mixed. Support is at 418.00, 414.00, and 405.00 May, and resistance is at 434.00, 442.00, and 447.00 May. Trends in Soybean Oil are up with no objectives. Support is at 4800, 4700, and 4650 May, with resistance at 5100, 5160, and 5220 May.
CANOLA AND PALM OIL
General Comments: Palm Oil closed higher on the back of stronger Soyoil futures. The export news has been good with February exports holding to stronger levels than January. The concern is that the higher price with the higher tax would scare away would be buyers. The production of Palm Oil is down in both Malaysia and Indonesia as plantations in both countries are having trouble getting workers into the fields. Wet weather has caused even more delays. Canola closed sharply lower on what was called follow through selling and selling based on Chicago price action. It appeared that speculators were trying to take some profits. The market has been very strong on demand against very limited supplies in the country. Futures have rallied sharply in the last few weeks but are now giving back a part of the gains.
Chart Analysis: Trends in Canola are mixed. Support is at 716.00, 703.00, and 692.00 May, with resistance at 752.00, 783.00, and 789.00 May. Trends in Palm Oil are up with objectives of 3810 May. Support is at 3700, 3630, and 3600 May, with resistance at 3800, 3830, and 3860 May.