WheatGeneral Comments: Wheat was higher in all three markets on adverse world growing conditions. Russian analytical services cut production estimates over the weekend to between 80 and 82 million tons, from over 85 million previously. There were no more reports of frosts and freezing temperatures in Russian growing areas. It has also been very dry there. In addition, Ukraine sent drones to several Russian ports, including grains ports, to disrupt the export pace and cost Russia money. The weather is still a key, with extreme dryness reported in Russia and parts of the US and too wet conditions reported in Europe. Big world supplies and low world prices are still around. Export sales remain weak on competition from Russia, Ukraine, and the EU as those countries look to export a lot of Wheat in the coming period. Black Sea offers are still plentiful.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be above normal. Northern areas should see mostly dry conditions. Temperatures will average above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are up with no objectives. Support is at 709, 701, and 682 July, with resistance at 746, 755, and 782 July. Trends in Kansas City are up with no objectives. Support is at 685, 660, and 640 July, with resistance at 728, 734, and 740 July. Trends in Minneapolis are mixed. Support is at 751, 743, and 721 July, and resistance is at 768, 770, and 789 July.
RiceGeneral Comments: Rice closed lower yesterday on speculative selling tied to weaker demand ideas. Most of the weakness was in the front months due to many buyers holding off making purchases until the cheaper new crop Rice becomes available in a few months. Support comes from adverse weather in South American growing areas while new selling is noted from the potential for a big crop in the US. The big US crops are now in doubt from reports of extreme rains in southern growing areas and especially near Houston. Supply tightness is expected to give way to increased production this year and greatly increased supplies this Fall. These ideas are reflected in the prices seen in the old crop and the new crop. Big rains from severe storms could be damaging crops in Texas.
Overnight News:
Chart Analysis: Trends are down with no objectives. Support is at 1785, 1750, and 1725 July and resistance is at 1859, 1873, and 1900 July.
Corn And OatsGeneral Comments: Corn and Oats closed lower yesterday on forecasts for improved planting weather for the Midwest and on reports of increased competition for export sales from South America. The weather in the Midwest has been very wet and more rain is coming to cause planting delays but to allow for rapid development of planted crops. The Argentine crop has been hit by stunting disease that robs yields and the Brazil Winter crop is suffering from hot and dry weather, but sellers in both countries are offering. Demand has been the driving force behind the rally. Increased demand was noted in most domestic categories along with rising basis levels, and export demand has been strong. Ethanol demand has turned less due to weaker petroleum prices seen lately.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 460, 450, and 444 July, and resistance is at 467, 475, and 483 July. Trends in Oats are down with no objectives. Support is at 362, 357, and 350 July, and resistance is at 384, 390, and 403 July.
SoybeansGeneral Comments: Soybeans and Soybean Meal closed lower yesterday on reports of increased offers from South America. Soybean Oil closed a little higher. The weekly export sales report showed less than expected demand for US Soybeans. There were wire reports that China had bought two to four cargos of US Soybeans in recent days. Brazil basis levels are very strong and US products now compare favorably in price to those from South America. Support for Soybeans came from reports of excessive rains falling in US growing areas, especially the eastern sections of the Midwest. Domestic demand has been strong in the US but has suffered as crushers were crushing for oil. Oil demand has suffered as cheaper alternatives for feedstocks hit the bio fuels market.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1220, 1210, and 1204 July, and resistance is at 1256, 1260, and 1266 July. Trends in Soybean Meal are mixed. Support is at 365.00, 361.00, and 350.00 July, and resistance is at 391.00, 394.00, and 396.00 July. Trends in Soybean Oil are mixed. Support is at 4470, 4470, and 4420 July, with resistance at 4690, 4780, and 4880 July.
Canola And Palm OilGeneral Comments: Palm Oil was higher last week on Chicago Soybean Oil price action and despite ideas of increasing production. There is talk of increased supplies available to the market, but the trends are turning mixed on the daily and weekly charts. Canola was also lower yesterday on reports of generally good conditions in Canada.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 655.00, 646.00, and 639.00 July, with resistance at 675.00, 678.00, and 684.00 July. Trends in Palm Oil are mixed. Support is at 3870, 3820, and 3760 August, with resistance at 3990, 4040, and 4210 July.More By This Author:Softs Report – Wednesday, May 29
Grains Report – Thursday, May 23
Softs Report – Thursday, May 23
