WHEAT
General Comments: All three markets closed a little higher last week. World prices were stable amid weather problems here in the US and around the globe. USDA will update production later today in the Small Grains Report. Ideas are that the Great Plains are too hot and dry for best Wheat development are still around as the Winter crop gets planted. It is also hot and dry in western Canada. Cash markets in Russia were unchanged even as production estimates have dropped to about 82 million tons and prices in Europe have been near unchanged so far this week. Ideas of good crops just harvested in the US and Canada went against reports of dry weather in eastern Europe and Russia and too wet weather in France and Germany along with Spring Wheat areas of Russia are still heard and the weather there affecting world production estimates. There were more reports of dry conditions coming this week to Russian growing areas although Spring Wheat areas have seen too much rain. Eastern Europe is also hot and dry. Western Europe has seen too much rain.
Overnight News:
Chart Analysis: Trends in Chicago are mixed. Support is at 576, 564, and 561 December, with resistance at 599, 604, and 617 December. Trends in Kansas City are mixed. Support is at 559, 539, and 527 December, with resistance at 591, 604, and 617 December. Trends in Minneapolis are mixed. Support is at 602, 595, and 580 December, and resistance is at 627, 638, and 646 December.
RICE
General Comments: Rice closed lower last week on weather concerns. A hurricane came late in the week in the southern US and hit rice areas in the northern Delta with a lot of wind and rain. There was concern to damage to unharvested crops in the region. The US weather has been an issue much of the growing season with too much rain early in the year. Some areas are now too hot and dry, especially in Texas, and Texas yields are down as the harvest is now over in the state.
Overnight News:
Chart Analysis: Trends are mixed. Support is at 1489, 1479, and 1468 November and resistance is at 1533, 15a57, and 1562 November.
CORN AND OATS
General Comments: Corn and Oats closed higher and just off the highs of the day and the week. It remains dry in the Midwest, although there are forecasts for some showers and cooler temperatures in the Midwest this weekend. Ideas are that the production data will be the biggest seen all year due to the dry August and September in most of the Midwest. Producers plan to hold new crop supplies in hopes for higher prices. Ideas of very strong yields are still heard and harvest is under way. Yield reports heard so far show strong but not spectacular production potential for the national crop. Increased US demand comes from the fact that Corn prices are already the cheapest in the world. Current forecasts call for drier weather for the Midwest for the week or longer to hurt kernel fill and ear weights.
Overnight News:
Chart Analysis: Trends in Corn are mixed to up. Support is at 409, 401, and 397 December, and resistance is at 419, 424, and 426 September. Trends in Oats are up. Support is at 380, 374, and 357 December, and resistance is at 387, 404, and 410 December.
SOYBEANS
General Comments: Soybeans and Soybean Meal were higher last week after a sharp rally on Friday that appeared to be led by fund short covering tied to positioning for the end of the month and quarter today. Soybean Meal closed the week with very slight gains. Warm and dry weather in the Midwest recently has hurt production ideas due to ideas of small beans in the pods although there have been spotty showers more recently. Dry weather is expected to return this week. Ideas are that the production reports are the biggest that will be seen this year. There is concern about the dry weather seen in the Midwest could hurt pod fill. Ideas are that the beans could be smaller in the pods, but this will not be seen in this report that will include mainly pod counts. Bean sizes will be measured in subsequent months. Central and northern Brazil has also been dry and reports indicate that soil moisture levels are at 30 year lows. Soils are in much better shape in southern Brazil and Argentina. There are some forecasts for showers to return to central and northern areas in a couple of weeks. Reports indicate that China is buying a lot in the US but the country will be on holiday this week so no new demand is expected.
Overnight News: China bought 116,000 tons of US Soybeans.
Analysis: Trends in Soybeans are mixed to up. Support is at 1031, 1018, and 1002 November, and resistance is at 1087, 1097, and 1114 November. Trends in Soybean Meal are up with no objectives. Support is at 327.00, 320.00, and 314.00 October, and resistance is at 347.00, 353.00, and 356.00 October. Trends in Soybean Oil are mixed. Support is at 4180, 4060, and 4020 October, with resistance at 4480, 4520, and 4800 October.
PALM OIL AND CANOLA
General Comments: Palm Oil was lower on Friday, but higher for the week on ideas of better demand from India and reduced production potential as the monsoon rains arrive. Futures were lower today on long liquidation and currency concerns. The production could be reduced by flooding that can keep workers from the fields. Demand has held together despite India increasing import taxes on Palm Oil. Canola was lower early yesterday as long liquidation hit the pit but recovered with the price action in Chicago to close a little higher. The weather has been hot and dry in Canada and it looks like Canola production has been impacted. The weather has called for dry conditions in the Prairies and yields are expected to be the same or less. Demand concern remain at the forefront with less demand expected from China with that country now in a trade war with Canada.
Overnight News:
Chart Analysis: Trends in Canola are mixed to up. Support is at 588.00, 572.00, and 565.00 November, with resistance at 619.00, 622.00, and 648.00 November. Trends in Palm Oil are mixed. Support is at 4020, 3950, and 3920 December, with resistance at 4200, 4260, and 4320 December.More By This Author:Softs Report – Friday, Sept. 27Grains Report – Monday, Sep. 23Softs Report – Friday, Sep. 20
Grains Report – Monday, Sept. 30
