WHEAT
General Comments: The markets closed mixed, with Chicago and Minneapolis a little lower and Kansas City a little higher in reaction to news of tariffs being imposed on Europe and Europe retaliating by slapping tariffs on US oilseeds and grains. A small increase in US ending stocks estimates in the WASDE reports released on Tuesday were caused by a drop in export demand and an increase in imports. World data showed lower ending stocks as production has been dropping and supplies are being consumed There are now fears that the US is entering a recession. Growing conditions are dry around the world and in the US Great Plains and Winter Wheat crops are emerging from dormancy. This could be a supportive factor but overall demand has been weak so he lack of rain hurting production potential is less of an issue for the trade. The fears of a US recession are the consequence of the Trump economic and political policies. The consumer confidence is waning and could become a source of real harm to the economy.
Overnight News:
Chart Analysis: Trends in Chicago are mixed. Support is at 545, 530, and 524 May, with resistance at 566, 573, and 579 May. Trends in Kansas City are mixed to up. Support is at 555, 540, and 534 May, with resistance at 600, 610, and 619 May. Trends in Minneapolis are mixed. Support is at 585, 576, and 570 May, and resistance is at 609, 620, and 626 May.

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RICE
General Comments: Rice closed lower yesterday on some speculative selling after being sharply higher the previous session in response to the USDA reports. The domestic data showed an increase of 1.0 million cwt in Long grain ending stocks but a decrease of 1.0 million cwt for Medium and Short Grain ending stocks. World data showed a slight decrease in ending stocks levels. The average farm price for the US was a little higher. Mexico has escaped tariffs for now and so it will not apply its own and this was a big relief to the Rice market. Prices remain cheap and could threaten planted area as it will cost more to produce Rice than it is getting in the market right now. Export sales have not been strong, and domestic demand is there but is not strong enough right now to bid prices much higher. Milling quality of the Rice remains below industry standards and it takes more Rough Rice to create the grain for sale to stores and exporters. Generally weak Asian prices are still reported. Brazil prices are falling.
Overnight News:
Chart Analysis: Trends are turning up. Support is at 1352, 1336 and 1296 May and resistance is at 1416, 1427, and 1455 May.

CORN AND OATS
General Comments: Corn closed lower yesterday in response to news that the US had imposed tariffs ion Chinese and European steel and aluminum and that Europe had retaliated by placing tariffs on US agricultural goods.. Dry and cool conditions are in the Midwest forecast for today. The overall market fundamentals are still turning bearish, but short term rallies are still possible. The export demand in recent weeks has been very strong and it seems like some of the buying was in anticipation of the new presidential regime. President Trump has announced that new tariffs are being imposed as of Tuesday on goods and services and some buyers may have made purchases already to avoid the potential for the tariff later. The tariffs have become an off again on again feature of the government and no one knows what to do at this time. Oats were a little lower on some long liquidation after import tariffs were imposed on imports from Canada on Tuesday and seem to be holding so far.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 459, 442, and 434 May, and resistance is at 482, 492, and 505 May. Trends in Oats are up. Support is at 364, 359, and 351 May, and resistance is at 381, 391, and 400 May.

SOYBEANS
General Comments: Soybeans and the products closed lower yesterday in response to news hat the US imposed tariffs on steel and aluminum imports from China and Europe and Europe returned the favor by slapping tariffs on US agricultural goods. South American production looks strong. Futures were hit hard in part on the Trump tariffs and in part response to the big crops hitting the market from Brazil and as the tariffs were imposed on our largest customers on the export front this week. The tariffs have caused retaliation from our buyers, especially China, and could hurt demand, especially from China and Canada. Consumer confidence is down and there are increasing worries that the US could be headed into a recession that could hurt domestic demand. The fundamentals remain mixed as cash markets have turned stronger in South America and hot and dry weather has returned to central and northern parts of the country. The Soybeans harvest there is estimated to be more than half done.
Overnight News:
Analysis: Trends in Soybeans are mixed. To down Support is at 9900, 980 and 955 May, and resistance is at 1021, 1041, and 105 May. Trends in Soybean Meal are mixed to down. Support is at 291.00, 285.00, and 280.00 May, and resistance is at 308.00, 315.00, and 319.00 May. Trends in Soybean Oil are down. Support is at 4120, 4080, and 3990 May, with resistance at 4290, 4450, and 4460 May.

PALM OIL AND CANOLA
General Comments: Palm Oil closed a little higher on price action in Chicago that caused speculative buying in Malaysia and despite talk of less than expected export demand last week as reported by the private surveyors. There is talk of reduced supplies in the market due to extreme weather that caused fields to flood among other things. Demand from China has not been good but reports indicate that demand from India has been strong in February and provided support. Chart trends are turning up. Canola was sharply lower for the third day on news that China has imposed prohibitive tariffs on Canola and the products. The demand outlook is uncertain with the threat of US tariffs being imposed last week but was able to partially recover the losses on report of moderations by the US on the tariff schedule. The China news was devastating as China is a major importer of Canola and the products.
Overnight News:
Chart Analysis: Trends in Canola are down. Support is at 570.00, 564.00, and 558.00 May, with resistance at 590.00, 600.00, and 615.00 May. Trends in Palm Oil are mixed to up. Support is at 4430, 4370, and 4350 May, with resistance at 4650, 4720, and 4790 May.

Midwest Weather Forecast: Mostly dry. Temperatures should average above normal.

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