WHEAT
General Comments: Wheat was higher yesterday and trends are up in all three markets. The weather is the key, with extreme dryness reported in Russia and parts of the US and too wet conditions reported in Europe. The weekly export sales report showed poor sales once again. The problems with Russian Wheat exporters continue but are apparently getting resolved in the governments favor. The reports indicate that the government is seeking more control of the exports and has made life very difficult on the private exporters in an effort to extract more sales and powers to the government. Russia is the world’s largest exporter and sets the world price and prices remain low. Big world supplies and low world prices are still around. Export sales remain weak on competition from Russia, Ukraine, and the EU as those countries look to export a lot of Wheat in the coming period. Black Sea offers are still plentiful, but Russia has been bombing Ukraine again and shipments might be hurt from that origin.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be above normal. Northern areas should see mostly dry conditions. Temperatures will average above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are up with objectives of 618 May. Support is at 550, 541, and 534 May, with resistance at 608, 618, and 624 May. Trends in Kansas City are up with no objectives. Support is at 605, 602, and 590 May, with resistance at 633, 639, and 650 May. Trends in Minneapolis are up with objectives of 692 and 702 May. Support is at 650, 643, and 6032 May, and resistance is at 681, 688, and 692 May.
RICE
General Comments: Rice closed higher in quiet trading. Supply tightness is expected to give way to increased production this year and greatly increased supplies this Fall. Trends are up in this market on the daily charts. The market noted good planting and emergence progress in the weekly USDA reports.
Overnight News:
Chart Analysis: Trends are up with no objectives. Support is at 1850, 1820, and 1818 May and resistance is at 1936, 1948, and 1960 May.
CORN AND OATS
General Comments: Corn and Oats closed lower yesterday as traders think that good Spring weather here will greatly increase planted Corn area. Increased demand was noted in all domestic categories along with rising basis levels, and export demand has been strong. There are mixed ideas about how many acres of Corn will be planted in the US this year. It is very expensive to plant Corn and Corn is considered unprofitable to plant right now, so planted are might not increase that much if at all. USDA issued its crop progress report for Corn and Corn planting is proceeding at an average pace. Demand for Corn has been strong at lower prices. Big supplies and reports of better demand are still around, but futures have been very oversold. Funds remain very large shorts in the market.
Overnight News:
Chart Analysis: Trends in Corn are mixed to up with objectives of 443 and 452 May. Support is at 431, 426, and 422 May, and resistance is at 448, 454, and 463 May. Trends in Oats are up with objectives of 370 May. Support is at 352, 344, and 339 May, and resistance is at 369, 376, and 379 May.
SOYBEANS
General Comments: Soybeans and the products closed mixed yesterday with some selling from Brazil noted on the early rally attempt. Reports of great export demand in Brazil provide some support. Reports indicate that China has been a very active buyer of Brazil Soybeans this season. Ideas that South American production is taking demand from the US have pressured futures lower. Domestic demand has been strong in the US. Funds remain large shorts in the market. The US reports strong domestic demand.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1143, 1132, and 1120 May, and resistance is at 1181, 1193, and 1207 May. Trends in Soybean Meal are mixed. Support is at 340.00, 335.00, and 330.00 May, and resistance is at 352.00, 357.00, and 366.00 May. Trends in Soybean Oil are mixed. Support is at 4610, 4350, and 4280 May, with resistance at 4620, 4730, and 4830 May.
CANOLA AND PALM OIL
General Comments: Palm Oil was lower and made new lows for the move. The export pace is expected to continue to really improve but this is part of the price already, in part due to stronger world petroleum prices that have affected world vegetable oils prices as well. Domestic biofuels demand is likely to improve. Ideas of weaker production ideas against good demand still support the market overall. Trends are turning up on the daily charts. Canola was lower in response to the price action in Chicago.
Overnight News:
Chart Analysis: Trends in Canola are mixed to up with objectives of 657.00 and 667.00 May. Support is at 620.00, 613.00, and 606.00 May, with resistance at 645.00, 652.00, and 65.00 May. Trends in Palm Oil are mixed. Support is at 3880, 3860, and 3770 July, with resistance at 4040, 4180, and 4230 July.More By This Author:Softs Report – Wednesday, April 24
Softs Report – Monday, April 22
Grains Report – Friday, April 19
