WHEAT
General Comments: Wheat was unchanged to lower last week, with Chicago and KC Winter Wheat a little lower and Minneapolis Spring Wheat unchanged. World prices were stable amid weather problems here in the US and around the globe, but the weekly export sales report showed poor demand and negative demand for HRW. USDA will update production at the end of the month in the Small Grains Report. 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. Cash markets in Russia were unchanged even as production estimates have dropped to about 82 million tons and prices in Europe have been near unchanged so far this week. Ideas of good crops just harvested in the US and Canada went against reports of dry weather in eastern Europe and Russia and too wet weather in France and Germany along with Spring Wheat areas of Russia are still heard and the weather there affecting world production estimates. There were more reports of dry conditions coming this week to Russian growing areas although Spring Wheat areas have seen too much rain. Eastern Europe is also hot and dry. Western Europe has seen too much rain.
Overnight News:
Chart Analysis: Trends in Chicago are mixed. Support is at 564, 561, and 544 December, with resistance at 583, 599, and 603 December. Trends in Kansas City are mixed to down. Support is at 559, 549, and 527 December, with resistance at 576, 588, and 604 December. Trends in Minneapolis are mixed. Support is at 602, 595, and 580 December, and resistance is at 618, 627, and 638 December.DepositPhotos
RICE
General Comments: Rice closed higher last week on a lack of offers in the cash market and some reports of rain in Arkansas, Mississippi, and Louisiana that could have damaged production. A hurricane came on shore a week ago in Louisiana and brought significant rain and wind to Rice lands in Louisiana, Mississippi, and Arkansas. The US weather has been an issue much of the growing season with too much rain early in the year. Some areas are now too hot and dry, especially in Texas, and Texas yields are down as the harvest is now over in the state. USDA showed increased production and less demand in the monthly reports.
Overnight News:
Chart Analysis: Trends are mixed to up. Support is at 1539, 1539, and 1479 November and resistance is at 1562, 1575, and 1586 November.
CORN AND OATS
General Comments: Corn closed higher last week but near the weekly lows and Oats closed slightly higher. USDA showed increased production but a bigger increase in demand for reduced ending stocks in its reports released a week ago and it remains warm and dry in the Midwest, although there are forecasts for some showers in the Midwest today. Many of the changes to demand were in the old crop data that carried through to the new crop. Ideas are that the production data will be the biggest seen all year due to the dry August and September in most of the Midwest. Producers plan to hold new crop supplies in hopes for higher prices. Ideas of very strong yields are still heard and harvest is just a few weeks away. Increased US demand comes from the fact that Corn prices are already the cheapest in the world. Current forecasts call for warm and drier weather for the Midwest for the week or longer to hurt kernel fill and ear weights.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 397, 389, and 366 December, and resistance is at 416, 424, and 426 September. Trends in Oats are down with no objectives. Support is at 348, 341, and 330 December, and resistance is at 374, 385, and 404 December.
SOYBEANS
General Comments: Soybeans and the products were a little lower again Friday, but Soybean Oil was higher, as warm and dry weather in the Midwest now hurt production ideas due to ideas of small beans in the pods. Ideas are that the production reports are the biggest that will be seen this year. There is concern about the dry weather seen in the Midwest since early last week that could hurt pod fill. Ideas are that the beans could be smaller in the pods, but this will not be seen in this report that will include mainly pod counts. Bean sizes will be measured in subsequent months. The weather is warm now and it should remain dry. Central and northern Brazil has also been dry and reports indicate that soil moisture levels are at 30 year lows. Soils are in much better shape in southern Brazil and Argentina. Reports indicate that China is buying a lot in the US but overall export demand is behind average. Export demand is catching up, however. Domestic demand has been strong in the US.
Overnight News: Unknown destinations bought 165,000 tons of US Soybeans.
Chart Analysis: Trends in Soybeans are mixed. Support is at 988, 973, and 960 November, and resistance is at 1032, 1042, and 1064 November. Trends in Soybean Meal are mixed to up with no objectives. Support is at 312.00, 306.00, and 304.00 October, and resistance is at 333.00, 344.00, and 347.00 October. Trends in Soybean Oil are mixed to up. Support is at 4060, 4020, and 3870 October, with resistance at 4300, 4400, and 4520 October.
PALM OIL AND CANOLA
General Comments: Palm Oil started the week lower and closed higher higher on ideas of weakening production and reports of improving export demand despite news that India had increased Palm Oil import taxes. It was higher today on ideas of better export demand. There is talk of increased supplies available to the market, and the trends are mixed on the daily charts. Canola was higher all last week in response to StatsCan production data and the weather in Brazil which has been very dry in central and northern areas. The weather has been hot and dry in Canada and it looks like Canola production has been impacted. The weather has called for dry conditions in the Prairies and yields are expected to be the same or less. Demand concern remain at the forefront with less demand expected from China with that country now in a trade war with Canada.
Overnight News:
Chart Analysis: Trends in Canola are mixed to up. Support is at 572.00, 565.00, and 538.00 November, with resistance at 606.00, 622.00, and 648.00 November. Trends in Palm Oil are mixed. Support is at 3860, 3820, and 3770 December, with resistance at 3970, 4000, and 4020 December.More By This Author:Softs Report – Friday, Sep. 20Grains Report – Thursday, Sep. 19Softs Report – Wednesday, Sep. 18