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WHEAT          

General Comments  Winter Wheat markets were lower with Chicago SRW leading the way.  Speculators appeared to be the best sellers and sold on reports of some rains in Texas.  It has been a demand market.  Demand has been disappointing so far as traders had expected better exports due to problems in Russia and parts of Europe earlier in the year.  Ideas are that rain and snow that is falling in the Great Plains will help injured Winter Wheat.  Temperatures dropped below 0F in many areas a few weeks ago 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.

Overnight News:  The southern Great Plains should get scattered showers.  Temperatures should be variable.  Northern areas should see scattered showers. Temperatures will be near to below normal.  The Canadian Prairies should see mostly dry conditions.  Temperatures should average above normal.

Chart Analysis:  Trends in Chicago are down with objectives of 622, 616, and 608 May.  Support is at 622, 616, and 608 May, with resistance at 644, 649, and 658 May.  Trends in Kansas City are down with objectives of 563 and 450 May.  Support is at 570, 568, and 560 May, with resistance at 591, 602, and 610 May.  Trends in Minneapolis are mixed to down with objectives of 601 May.  Support is at 620, 615, and 610 May, and resistance is at 632, 640, and 644 May.

RICE  

General Comments:  Rice was higher in improved volume trading.  Commercial buying appeared to go against some fund and other speculator selling.  The cash market has not felt any increased export demand lately and mill operations are reported to be on the slow side.  Texas is about out of Rice, but there is Rice available in the other states, especially Arkansas.  Asian and Mercosur markets were steady to firm last week.  New crop Rice is getting planted in Texas and planting is starting in Louisiana.

Overnight News:  The Delta should get scattered showers today, tomorrow, and Sunday. Temperatures should be above normal.

Chart Analysis:   Trends are mixed.  Support is at 1320, 1300, and 1293 May, with resistance at 1350, 1355, and 1363 May.

CORN AND OATS:  

General Comments:  Corn closed a little higher yesterday but mostly in sympathy with the rally in Soybeans.  Traders are afraid that China might not buy more US Corn because the talks over the weekend between China and the US were not real positive.  The country bought about 4.0 million tons of US Corn last week.    Chinese demand had been strong until recently and it looks like they need the Corn.  Prices inside China for Corn remain extremely high.  It is still raining but is drier in central and parts of northern Brazil, and farmers are able to harvest much of the Soybeans area and plant some of the Winter Corn.  The Winter Corn crop is on a very slow pace to be planted and progress is well behind normal.  Argentina has seen a general rain in the last week and Corn in Argentina has stabilized after losing yield to dry conditions and crop stress.  Southern Brazil is also in a better place on crop conditions.  More rain is in the forecast for these areas in the next week.  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.

Overnight News:  Japan bought 111,000 tons of US Corn.

Chart Analysis:  Trends in Corn are mixed.  Support is at 546, 540, and 531 May, and resistance is at 559, 568, and 577 May.  Trends in Oats are down with no objectives.  Support is at 369, 362 and 360 May, and resistance is at 386, 387, and 390 May.

SOYBEANS 

General Comments:  Soybeans and the products closed higher on very strong demand ideas for Soybean Oil and tight supply ideas for Soybeans.  Weekly chart trends are sideways to up for Soybeans and are sideways in Soybean Meal.  Soybean Oil trends are up.  Selling came on ideas that the ongoing Brazil harvest will kill current demand for US Soybeans.  Demand was worse last week in the weekly export data but the US has now sold 99% of its target amount of Soybeans for the marketing year and really has very few Soybeans left to sell.  The Brazil harvest had 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 in the north as well.  Harvest activities have increased but the harvest remains very slow overall.  China has been buying for this year and next year here but now mostly in South America.  US internal demand has also been strong.

Overnight News:    

Chart Analysis:  Trends in Soybeans are mixed.  Support is at 1418, 1390, and 1374 May, and resistance is at 1435, 1446, and 1460 May.  Trends in Soybean Meal are mixed.   Support is at 395.00, 385.00, and 370.00 May, and resistance is at 410.00, 415.00, and 418.00 May.  Trends in Soybean Oil are up with objectives of 5950 May.  Support is at 5620, 5560, and 5410 May, with resistance at 5820, 5840, and 5900 May.

CANOLA AND PALM OIL          

General Comments:  Palm Oil closed lower today in range trading.  Ideas of tight supplies are still around but supplies should start to seasonally increase.  Futures were higher today on the solid export pace so far this month.  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.  The weather is improved and trees seasonally increase production about now.  Export demand has been less for the last couple of months.  Canola was higher on what appeared to be speculative buying tied to price action in Chicago.  Chicago Soybean Oil rallied and supported Canola price action.  Worries about South American production are supporting both markets but both are looking for new triggers to promote more buying.

Overnight News:

Chart Analysis:  Trends in Canola are mixed.  Support is at 770.00, 765.00, and 746.00 May, with resistance at 806.00, 820.00, and 826.00 May.  Trends in Palm Oil are mixed to down with objectives of 3580 June.  Support is at 3850, 3760, and 3630 June, with resistance at 4010, 4060, and 4120 June.

Questions? Ask Jack Scoville today at 312-264-4322
 
 
 
 

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