WHEAT
General Comments: Wheat was lower in all three markets last week as adverse world growing conditions appear to be part of the price now and could be moderating in the next week or so, anyway. 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 hot temperatures coming this week to Russian growing areas, but rain ia also now in the forecasts. 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 670, 664, and 658 July, with resistance at 706, 715, and 722 July. Trends in Kansas City are up with no objectives. Support is at 685, 660, and 640 July, with resistance at 734, 740, and 746 July. Trends in Minneapolis are mixed. Support is at 721, 713, and 706 July, and resistance is at 768, 770, and 789 July.
RICE
General Comments: Rice closed mostly higher last week, but July was lower on speculative selling tied to weaker demand ideas and the weekly charts showed the weakness in July. Most of the weakness was in the front month 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 storms continue to bring significant and potentially damaging rains to crops in Texas.
Overnight News:
Chart Analysis: Trends are down with no objectives. Support is at 1750, 1725, and 1674 July and resistance is at 1825, 1843, and 1859 July.CORN AND OATS
General Comments: Corn closed lower last week on forecasts for improved planting weather for the Midwest and on reports of increased competition for export sales from South America as basis levels are reported to be lower in Brazil. Oats were higher. 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. Oats were higher last week.
Overnight News: Spain boght 110,000 tons of US Corn.
Chart Analysis: Trends in Corn are mixed. Support is at 444, 438, and 432 July, and resistance is at 461, 467, and 475 July. Trends in Oats are up with no objectives. Support is at 372, 362, and 357 July, and resistance is at 390, 403, and 409 July.SOYBEANS
General Comments: Soybeans and Soybean Meal closed lower last week 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 price are weakening amid veery strong imports from Brazil. Reports indicate that China remains an active buyer of Soybeans in Brazil, but might have to cut back on demand if the domestic market does not improve. 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 1197, 1185, and 1178 July, and resistance is at 1224, 1256, and 1260 July. Trends in Soybean Meal are mixed. Support is at 361.00, 359.00, 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 OIL
General Comments: Palm Oil was higher last week on ideas of good export demand despite ideas of increasing production. It was closed today for a holiday. Export demand has been very strong in recent private reports. There is talk of increased supplies available to the market, but the trends are up 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 3970, 3930, and 3870 August, with resistance at 4210, 4230, and 4280 July.More By This Author:Softs Report – Friday, May 31Grains Report – Thursday, May 30Softs Report – Thursday, May 30
