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Wheat:General Comments: Wheat markets were higher in sympathy with the rallies in Corn and especially Soybeans. 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 567, 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 668, 688, and 697 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 mixed yesterday. 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. The daily and 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 1688, 1694, and 1702 January.
Corn And Oats:General Comments: Corn closed higher yesterday in sympathy with the big rally in Soybeans and on weather conditions in Brazil. Oats closed higher. 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 101,750 tons of US Corn.
Chart Analysis: Trends in Corn are mixed. Support is at 469, 461, and 458 December, and resistance is at 478, 506, and 507 December. Trends in Oats are mixed to up with objectives of 396 and 408 December. Support is at 325, 322, and 316 December, and resistance is at 363, 371, and 374 December.
Soybeans:General Comments: Soybeans closed higher yesterday as drought continued in central and northern Brazil and too much rin was reported for southern Brazil. 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. 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:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1350, 1336, and 1331 January, and resistance is at 1384, 1388, and 1398 January. Trends in Soybean Meal are up with no objectives. Support is at 451.00, 439.00, and 433.00 December, and resistance is at 476.00, 482.00, and 488.00 December. Trends in Soybean Oil are mixed. Support is at 4980, 4900, and 4630 December, with resistance at 5210, 5300, and 5350 December.
Canola And Palm Oil:General Comments: Palm Oil was higher last week on news of strong export demand from MPOB. It was 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 on the weather in Brazil. 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 711.00, 725.00, and 731.00 January. Trends in Palm Oil are mixed. Support is at 3730, 3710, and 3650 January, with resistance at 3820, 3880, and 3900 January.More By This Author:
Grains Report – Tuesday, Nov. 14
