Wheat:General Comments: Wheat markets were lower for HRW, but higher for SRW and HRS last week in lifeless trading. The USDA estimates that showed higher than expected ending stocks estimates or the US and the world. USDA increased imports by 10 million bushels and cut back slightly on domestic demand while leaving export demand unchanged. US ending stocks were estimated at 684 million bushels, from 670 million last month. USDA increased world Wheat production and also demand for ending stocks estimates of 258.7 million tons, from 258.1 million last month Ukraine is still exporting through the Black Sea. Russia is still exporting and offering Wheat into the world market and is reporting that it is larger than originally thought. Ukraine and the EU countries are offering as well and are getting new business. Demand has been poor for US Wheat as Russian production looks strong, but exports are expected to increase for the rest of the marketing year. Weather forecasts call for drier weather for Australia, with production losses now expected. There are reports of some showers in both countries to raise production estimates slightly but not enough to bring production close to averages. Argentine conditions are reported to be good after a very dry start but showers and rains in recent weeks. It has been too wet in southern Brazil and much of the Wheat grown there is expected to be feed grade instead of milling grade.
Overnight News: The southern Great Plains should get isolated showers. Temperatures should be below normal. Northern areas should see isolated showers. Temperatures will average below normal. The Canadian Prairies should see scattered showers. Temperatures should average below normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 571, 564, and 555 December, with resistance at 599, 604, and 636 December. Trends in Kansas City are mixed. Support is at 630, 624, and 612 December, with resistance at 661, 668, and 688 December. Trends in Minneapolis are mixed. Support is at 721, 703, and 696 December, and resistance is at 740, 746, and 752 December.
Rice:General Comments: Rice closed higher again Friday in part on the USDA reports. Buying was seen all week as the harvest had ended and the crops were in the bin. The USDA reports showed that production was cut back and demand was left unchanged for an ending stocks estimate of 40.9 million cwt, from 41.8 million last month. The production losses were spread between long and medium/short grains. Ending stocks levels for long grain are now 22.2 million cwt and 15.4 million cwt for medium/short grain. Futures on Friday smashed through some important resistance areas and completed a sharp five day rally. The weekly chart trends have turned up.
Overnight News: The Delta should get isolated showers, mostly near the Gulf coast. Temperatures should be above normal.
Chart Analysis: Trends are up with no objectives. Support is at 1658, 1637, and 1615 January and resistance is at 1694, 1702, and 1712 January.
Corn And Oats:General Comments: Corn closed lower last week and made new contract lows in response to the USDA reports. USDA increased yields and production much more than expected and US production is now estimated at 15.234 billion bushels, from 15.064 billion last month. Demand was increased slightly for just about all categories but ending stocks were higher at 2.156 billion bushels, from 2.111 billion last month. World ending stocks were increased to 315 million tons, from 312.4 million last month. The weekly export sales report was strong last week. Oats closed lower but made a hook reversal higher on Friday and could see additional buying this week. It is still hot and dry in central and northern Brazil and in Argentina although some beneficial rains have been reported in Argentina and a few showers are reported in central and northern Brazil. Southern Brazil is much too wet. The weather patterns seem stuck in South America.
Overnight News: Mexico bought 143,637 tons of U.S. corn.
Chart Analysis: Trends in Corn are down with objectives of 456 and 443 December. Support is at 458, 452, and 446 December, and resistance is at 468, 478, and 486 December. Trends in Oats are mixed. Support is at 324, 322, and 316 December, and resistance is at 363, 371, and 374 December.
Soybeans:General Comments: Soybeans closed a little higher last week despite late-week selling that developed in response to the USDA reports. Soybean Meal and Soybean Oil were higher. The weekly export sales report was strong and strong sales have been reported to China and unknown destinations on the daily reporting system. But, USDA issued bearish reports. USDA estimated yields and production a little higher at 4.129 billion bushels, from 3.104 billion last month. The trade had expected a slight decline in production. Ending stocks were 245 million bushels, from 220 million last month. World stocks were estimated at 114.5 million tons, from 115.6 million last month. Futures have rallied a lot lately and were due a correction. The selling could be running out of steam as futures are just above support areas on the daily charts. The trade remains concerned about the weather forecasts for South America. Brazil remains mostly hot and dry in northern areas and too wet in southern areas. These weather trends are expected to continue.
Overnight News: China compro 204,000 toneladas de frijol de soya americano.
Chart Analysis: Trends in Soybeans are down with objectives of 1334 and 1297 January. Support is at 1326, 1331, and 1319 January, and resistance is at 1361, 1382, and 1388 January. Trends in Soybean Meal are mixed. Support is at 429.00, 423.00, and 422.00 December, and resistance is at 458.00, 464.00, and 470.00 December. Trends in Soybean Oil are mixed. Support is at 5000, 4900, and 4630 December, with resistance at 5210, 5300, and 5350 December.
Canola And Palm OilGeneral Comments: Palm Oil was higher last week on news of strong export demand from MPOB. It is closed for a holiday today. Production was high but this was expected. The strong demand was not expected. Private surveyors showed that the strong demand continues for the month to date. Trends are mixed on the daily charts. Canola closed higher and near the highs of the week. The crop is harvested and it is in bins, so it will take some price movement to get new farm sales. Trends are bottoming on the daily charts in this market.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 681.00, 673.00, and 660.00 January, with resistance at 696.00, 704.00, and 711.00 January. Trends in Palm Oil are mixed. Support is at 3730, 3710, and 3650 January, with resistance at 3810, 3820, and 3880 January.More By This Author:Softs Report – Monday, Nov. 13Grains Report – Wednesday, November 1Softs Report – Friday, October 27
Grains Report – Monday, Nov. 13
