WHEAT
General Comments: Wheat was lower in all three markets again yesterday as the US harvest expands and even as adverse world growing conditions are still around. There are more reports of hot temperatures coming this week to Russian growing areas. It has also been very dry there. The weather is still a key, with extreme dryness reported in Russia and parts of the US and too wet conditions reported in Europe. However, US producers are reporting strong yields so far and very good conditions. Big world supplies and low world prices are still around.
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 down with no objectives. Support is at 606, 595, and 569 July, with resistance at 630, 640, and 650 July. Trends in Kansas City are down with no objectives. Support is at 600, 623, and 598 July, with resistance at 660, 675, and 690 July. Trends in Minneapolis are down with no objectives. Support is at 669, 659, and 648 July, and resistance is at 700, 710, and 725 July.RICE
General Comments: Rice closed lower in July yesterday as the contract continues to liquidate longs and shorts in a violent way. 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 have brought significant rains to crops in Texas, but the weather is better now.
Overnight News:
Chart Analysis: Trends are mixed. Support is at 1763, 1741, and 1725 July and resistance is at 1798, 1825, and 1835 JulyCORN AND OATS
General Comments: Corn closed a little higher yesterday on news that Brazil has proposed new export taxes on Agricultural goods of 20%. Congress must approve the measure, but farmers there are already reported to be halting sales to see what happens next. The US Midwest is still seeing good growing conditions. The market anticipated that crop condition ratings would be very high in the USDA reports last week and will anticipate high crop ratings this week. Oats were lower on good growing conditions found in the northern US and into Canada. The weather in the Midwest has been very wet but it is drier now. 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.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 438, 436, and 434 July, and resistance is at 454, 461, and 467 July. Trends in Oats are down with no objectives. Support is at 330, 323, and 317 July, and resistance is at 350, 368, and 374 July.SOYBEANS
General Comments: Soybeans and the products closed mostly higher yesterday despite good growing conditions in the US against weaker demand ideas and on reports of increased taxes for Brazil farmers. The government there has proposed a new tax on farm production and exports of up to 20%. Congress must approve the measure, but reports indicate that Brazil farmers are pulling back from sales to see what happens next. There were wire reports that China prices 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. China said that it has increased exports of Soybean Meal due to the weaker internal demand. 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 biofuels market.
Overnight News: Chna bought 104,000 tons of US Soybeans.
Chart Analysis: Trends in Soybeans are down with no objectives. Support is at 1166, 1157, and 1146 July, and resistance is at 1210, 1224, and 1236 July. Trends in Soybean Meal are mixed to down with objectives of 350.00 and 324.00 July. Support is at 350.00, 345.00, and 342.00 July, and resistance is at 373.00, 376.00, and 381.00 July. Trends in Soybean Oil are mixed to down with objectives of 4330 and 4130 July. Support is at 4310, 4270, and 4250 July, with resistance at 4530, 4690, and 4780 July.CANOLA AND PALM OIL
General Comments: Palm Oil was lower today. 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 mostly higher despite reports of generally good conditions in Canada as the Canadian Dollar rallied.
Overnight News:
Chart Analysis: Trends in Canola are down with no objectives. Support is at 614.00, 603.00, and 597.00 July, with resistance at 642.00, 645.00, and 660.00 July. Trends in Palm Oil are mixed. Support is at 3850, 3780, and 3600 August, with resistance at 4080, 4140, and 4300 July.More By This Author:Softs Report – Monday, June 10
Grains Report – Thusday, June 6
Softs Report – Thursday, June 6
