WHEAT
General Comments: The markets were mixed yesterday, with Chicago a little lower and KC and Minneapolis a little higher as forecasts for very beneficial rains for the Great Plains and Midwest and reports of steady offers in Russia continue. The rains are falling and will allow Wheat farmers to plant the Winter crops. Little to no rain has been a problem with Winter Wheat planting in the US but that is starting to change. 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. Both areas could get better rain in the next two weeks. Cash markets in Russia were lower as production estimates remain lower and two regions have been declared a farming emergency due to the hot and dry weather.
Overnight News:
Chart Analysis: Trends in Chicago are mixed. Support is at 556, 544, and 538 December, with resistance at 580, 589, and 595 December. Trends in Kansas City are mixed to down. Support is at 561, 556, and 549 December, with resistance at 583, 593, and 603 December. Trends in Minneapolis are mixed. Support is at 595, 586, and 580 December, and resistance is at 617, 624, and 632 December.
RICE
General Comments: Rice closed a little lower yesterday after failing to hold to a higher move early in the day. The trends are still down on the charts. Lower Asian prices are still reported. Brazil prices remain strong and well above US prices. The US weather has been an issue much of the growing season with too much rain early in the year. The harvest is over for most US producers and yield reports have had a wide range from poor to good. Export demand was not strong last week.
Overnight News:
Chart Analysis: Trends are mixed. Support is at 1464, 1452, and 1440 January and resistance is at 1492, 1503, and 1513 January.
CORN AND OATS
General Comments: Corn closed a little higher yesterday after trading higher early in the session as the US harvest wraps up and as demand remains strong. There was a new demand announcement made yesterday that Mexico bought 150,000 tons and unknown destinations bought 132,000 tons and the demand in recent weeks has been very strong. Oats were higher. The harvest is winding down but is still active and yield reports in general have been strong. It has been very dry in the Midwest to promote the very active harvest progress gut rain is forecast for much of his week in the Midwest. The harvest will be complete in two weeks or less. Corn is being harvested with dry grain. The Corn is often well below 12% moisture level and this could cost some yield at the end of the day. Crop conditions in southern Brazil and Argentina with reports of ample moisture in southern Brail and report of improving moisture levels in Argentina.
Overnight News: Unknown destinations bought 124,000 tons of US Corn.
Chart Analysis: Trends in Corn are mixed. Support is at 408, 399, and 397 December, and resistance is at 420, 424, and 428 September. Trends in Oats are up. Support is at 390, 381, and 374 December, and resistance is at 408, 412, and 415 December.
SOYBEANS
General Comments: Soybeans were a little higher and Soybean Meal was higher yesterday as demand news was seen and on ideas that the US government is about to announce new limits on biofuels production that could greatly increase the demand for Soybean Oil. Soybean Oil was lower as there has been no announcement yet. Brazilian farmers are planting what is expected to be a very big crop in central and northern areas of the country. Warm and dry weather in the Midwest recently has hurt production ideas due to ideas of small and very dry beans in the pods. Farmers have focused on Soybeans harvest but now are almost done and are moving through Corn. Soybeans ae often harvested at moisture levels below 10% this year. Rains are now in the forecast for much of this week. Central and northern Brazil rains will continue as it looks like the rainy season is now underway. Soils are in much better shape in southern Brazil and Argentina.
Overnight News:
Analysis: Trends in Soybeans are down. Support is at 991, 977, and 974 January, and resistance is at 1003, 1018, and 1030 January. Trends in Soybean Meal are mixed to down. Support is at 294.00, 288.00, and 285.00 December, and resistance is at 309.00, 312.00, and 323.00 December. Trends in Soybean Oil are mixed to up. Support is at 4500, 4430, and 4350 December, with resistance at 4680, 4940, and 5000 December.
PALM OIL AND CANOLA
General Comments: Palm Oil was higher yesterday on follow through buying on ideas of strong demand and tight supplies on offer. It was lower today on some profit taking and in sympathy with Soybean Oil in Chicao. There are ideas of weaker production and these should be validated by the next round of monthly MPOB reports to be released in ten ex week or so. Canola was lower along with Soybean Oil in Chicago and a higher Canadian Dollar.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 635.00, 623.00, and 605.00 January, with resistance at 659.00, 673.00, and 685.00 January. Trends in Palm Oil are up. Support is at 4590, 4480, and 4370 January, with resistance at 4720, 4780, and 4840 January.Midwest Weather Forecast: Rain. Temperatures should average near to below normal.More By This Author:Softs Report – Monday, Nov. 4Grains Report – Friday, Nov. 1Softs Report – Thursday, Oct. 31
Grains Report – Tuesday, Nov. 5
