WHEAT
General Comments: Wheat markets were mixed yesterday on light be available to the trade. Some follow-through selling was noted tied to news that Russia had had decided to participate in the Ukraine grain export agreement after all and on news that exports from Ukraine were still going on. The reduced pace of export sales for the US were bearish. Ideas are that weak demand can continue due in part to the stronger US Dollar even though the Dollar was lower yesterday. The lower Dollar can have a bigger effect on demand if the Dollar breaks through nearby support near 109.50 on the December Dollar Index. The demand for US Wheat still needs to show up and right now there is no demand news to help support futures.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should average above normal. Northern areas should see mostly dry conditions . Temperatures will average above normal. The Canadian Prairies should see scattered showers. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 834, 823, and 819 December, with resistance at 864, 868, and 892 December. Trends in Kansas City are mixed. Support is at 940, 925, and 915 December, with resistance at 972, 982, and 991 December. Trends in Minneapolis are mixed. Support is at 944, 933, and 928 December, and resistance is at 973, 993, and 1002 December.

Photo by Evi Radauscher on Unsplash

RICE
General Comments: Rice was higher and closed at new highs for the move. Some new selling might be found soon as futures and basis are now getting close to being profitable for producers to sell. Shipping delays caused by the low river levels on the Mississippi and as the harvest pressure continued. Some rain has fallen in the basin in the last week so barge traffic on the Mississippi might get better. Demand in general has been slow for Rice for both exports and domestic uses but export demand was improved last week. The weekly charts show that trends are up. The weekly export sales report was strong and featured big sales to the Dominican Republic. Those sales are thought to be in error and the sales report this week should correct the problem..
Overnight News: The Delta should get scattered showers. Temperatures should be near to above normal.
Chart Analysis: Trends are up with objectives of 1815 and 1850 January. Support is at 1770, 1745, and 1732 November and resistance is at 1793, 1799, and 1805 November

CORN AND OATS
General Comments: Corn and Oats closed lower yesterday on selling from the lack of export demand. Weak demand for US Corn remains a big problem for the market as USDA is expected to cut demand and raise ending stocks in its WASDE reports.. The Mississippi river is low due to the dry conditions seen in most of the central parts of the US. Barge traffic has been reduced. The cash market has been strong at the Gulf but weak in the Midwest river areas due to the low river levels. There are increasing concerns about demand with the Chinese economic problems caused by the lockdowns creating the possibility of less demand as South America has much better crops this year to compete with the US for sales. Export demand in general has been slow so far this year and was slow in the weekly export sales report.
Overnight News: Mexico bought 338,600 tons of US Corn.
Chart Analysis: Trends in Corn are mixed. Support is at 674, 672, and 665 December, and resistance is at 686, 700, and 706 December. Trends in Oats are mixed. Support is at 377, 368, and 347 December, and resistance is at 395, 400, and 410 December.

SOYBEANS
General Comments: Soybeans and Soybean Oil were lower yesterday. Soybean Meal was higher. The trade thinks that USDA can lower US demand and increase the ending stocks in the WASDE reports this week. Domestic demand should be increasing for Soybeans as the crush spreads got richer and provided crushers with a big profit margin for their crushing Export demand has suffered due to the lack of good buying by China. Ideas are that Brazil is off to a very good start. The Mississippi river is low due to the dry conditions seen in most of the central parts of the US but some rain fell in the basin last week and river levels should work a little higher. Barge traffic has been reduced but could increase with the improved river flows. The trade is worried about demand due to a lack of Chinese interest caused by the Covid lockdowns there and in part by the stronger US Dollar. Brazil is still offering its old crop Soybeans, and South America as a whole is expected to produce a very big crop later this year for harvest next Spring as the weather outlook is positive for crops. However, a third year of La Nina as predicted by meteorologists could cut the production potential. US production ideas remain strong after mostly good weather in August. There are still Chinese lockdowns and there are fears that China has been importing less as a result. However, Chinese data showed huge imports from all sources in September. President Xi has been elected to a third term in China and has stocked the ruling body with his associates so there are fears that nothing will change soon there. Mexico bought 144,000 tons of US Soybeans. China bought 138,700 tons of US Soybeans. Unknown destinations bought 132,000 tons of US Soybeans.
Overnight News:
Chart Analysis: Trends in Soybeans are up with objectives of 1524 January. Support is at 1428, 1423, and 1409 January, and resistance is at 1469, 1485, and 1493 January. Trends in Soybean Meal are mixed. Support is at 414.00, 407.00, and 404.00 December and resistance is at 425.00 431.00, and 441.00 December. Trends in Soybean Oil are up with objectives of 8260 December. Support is at 7590, 7360, and 7260 December, with resistance at 7820, 7940, and 8060 December.

CANOLA AND PALM OIL
General Comments: Palm Oil futures were lower today in sympathy with Chicago Soyybean Oil. Ideas are that supply and production will be strong, but demand ideas are now weakening and the market will continue to look to the private data for clues on demand and the direction of the futures market. Demand reports for the current month were stronger yesterday. Canola was a little lower yesterday along with the price action in Chicago Soybean Oil and a weaker US Dollar. The Canola harvest is about over. Reports indicate that domestic demand has been strong due to favorable crush margins. The Canola growing conditions are much improved and production estimates are higher for the year.
Overnight News:
Chart Analysis: Trends in Canola are mixed to up with objectives of 898.00 and 923.00 January. Support is at 882.00, 872.00, and 858.00 January, with resistance at 912.00, 916.00, and 922.00 January. Trends in Palm Oil are mixed. Support is at 4200, 3970, and 3890 January, with resistance at 4530, 4850, and 5030 January.

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