WHEAT
General Comments: Wheat was lower in all three markets again yesterday on reports of cheaper prices offered from Russia and as the US harvest expands and even as adverse world growing conditions are still around. Many were also looking ahead to the USDA reports on Friday that are expected to be bearish. 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 that exceed expectations 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 538, 532, and 526 July, with resistance at 558, 593, and 603 July. Trends in Kansas City are down with no objectives. Support is at 568, 554, and 544 July, with resistance at 596, 623, and 630 July. Trends in Minneapolis are down with no objectives. Support is at 596, 590, and 584 July, and resistance is at 635, 656, and 659 July.
General Comments: Rice closed mostly a little lower in new crop months, but July closed higher as the contract moves towards deliveries. 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 after a hurricane hit last week.
Overnight News:
Chart Analysis: Trends are mixed. Support is at 1816, 1797, and 1761 July and resistance is at 1872, 1900, and 1918 JulyCORN AND OATS
General Comments: Corn closed lower again yesterday on US weather that remains hot and mostly dry except for northern areas such as southern Minnesota that have had way too much rain and flooding reported. The US Midwest is seeing uneven growing conditions and so are Southeast growing areas. However, USDA kept crop conditions high and the market sees no real problem at this time. Many were also looking ahead to the release of the USDA reports n Friday that could be bearish. Oats were mostly a little higher on good growing conditions found in the northern US and into Canada.
Overnight News:
Chart Analysis: Trends in Corn are down with no objectives. Support is at 421 419, and 416 July, and resistance is at 436, 439, and 444 July. Trends in Oats are mixed to down with no objectives. Support is at 298, 292, and 286 July, and resistance is at 320, 330, and 340 July.SOYBEANS
General Comments: Soybeans and the products closed lower yesterday on preparations for the USDA reports on Friday and despite deteriorating growing conditions in the US and on forecasts for less heat and less rain in areas that need it in the Midwest this week. Precipitation chances are high in northern areas that have already been flooded. Reports indicate that China remains an active buyer of Soybeans in Brazil but has cut back and increased purchases from the US on demand due to the tax issues in Brazil and on Brazil logistical concerns. 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:
Chart Analysis: Trends in Soybeans are mixed . Support is at 1146, 1141, and 1134 July, and resistance is at 1180, 1193, and 1205 July. Trends in Soybean Meal are mixed. Support is at 357.00, 355.00, and 351.00 July, and resistance is at 376.00, 381.00, and 391.00 July. Trends in Soybean Oil are mixed. Support is at 4310, 4270, and 4250 July, with resistance at 4420, 4460, and 4490 July.CANOLA AND PALM OIL
General Comments: Palm Oil was a little lower yesterday in range trading. 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 lower yestersay despite reports of generally good conditions in Canada and as the Canadian Dollar rallied. The Brazil news was bearish as well.
Overnight News:
Chart Analysis: Trends in Canola are down with objectives of 593.00 and 566.00 July. Support is at 580.00, 574.00, and 568.00 July, with resistance at 600.00, 610.00, and 615.00 July. Trends in Palm Oil are mixed to down with objectives of 3770 and 3630 September. Support is at 3780, 3760, and 3680 September, with resistance at 3900, 3970, and 4020 September.Midwest Weather Forecast Scattered showers and storms. Temperatures should average below normal.More By This Author:Softs Report – Tuesday, June 25
Grains Report – Monday, June 24
Softs Report – Monday, June 24
