Wheat makes gains


Canola was mostly a little higher in consolidation trading yesterday. Cold weather is hurting planting progress and provided a reason to buy. There were reports of increased farm selling this week. Farmers remain frustrated by the logistical problems in Canada and Prairies farmers will plant less of all crops. Bad planting conditions are not helping progress. Trends are mixed on the charts. Commercials appear to be hand to mouth buyers as farmers have been more active with sales. Palm Oil was closed for May Day. Export demand was positive for the month and should help Support prices on Friday. Ideas are that export data will continue strong in the short term as demand for Ramadan increases. The weather feaures showers in Malaysia and showers and storms in Indonesia.

Chart Analysis: Trends in Canola are mixed. Support is at 472.50, 469.00, and 463.50 July, with resistance at 483.50, 486.00, and 493.00 July. Trends in Palm Oil are mixed. Support is at 2610. 2600, and 2560 July, with resistance at 2640, 2665, and 2685 July.



Milk and products were higher again yesterday. Longer term bullish trends remain intact, and short term trends are up, too. Some new domestic demand is apparent as wholesalers and retailers restock after the holidays. Milk supplies should increase for the short term and should translate into stronger production of Cheese, Butter, and dried products. Butter prices are strong overall as domestic demand remains strong, but producers have been able to build inventories. Prices last week were firmer in cash markets. Cheese production is steady to higher with demand for products reported strong and cash market prices are mixed. Producers will try to build inventory as Milk supplies increase Milk and dried products demand is called steady. New Zealand production remains strong on the South Island, but is dropping on the North Isalnd as conditions are dry. Australian production is dropping in line with seasonal trends. European dairy production is increasing and is above a year ago. Prices are weaker for Milk and products.

Chart Analysis: Trends in Milk are up with objectives of 2145 and 2245 June. Support is at 2100, 2090, and 2050 June, and resistance is at 2100, 2110, and 2120 June. Trends in Cheese are mixed to up with objectives of 204.50 and 212.00 June. Support is at 202.00, 200.00, and 197.00 June, with resistance at 205.00, 206.00, and 209.00 June. Trends in Butter are up with no objectives. Support is at 193.00, 190.50, and 189.00 June, and resistance is at 197.00, 200.00, and 203.00 June.

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About the Author
Jack Scoville

Jack Scoville is a veteran futures market analyst specializing in grains, softs, rice, oilseeds, and tropical products such as coffee and sugar. His industry contacts in South America, Europe, Asia, and North America provide him with a unique and comprehensive view of these markets. Jack began working in the futures industry over 30 years ago and spent 10 years working on the floor of the Chicago Board of Trade in various roles, starting with The PRICE Futures Group since it was established in 1988. Jack writes daily commentaries - Morning Grains and Softs, in both English and Spanish and is regularly quoted around the world by news & wire services including Dow Jones, AP, Bloomberg, and Reuters. You can contact Jack by phone at (312) 264-4322 or by email at jscoville@pricegroup.com. Learn even more on our website at www.pricegroup.com.

Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The information presented by The PRICE Futures Group is from sources believed to be reliable and all information reported is subject to change without notice.

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