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. 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 down with no objectives. Support is at 628, 595, and 569 July, with resistance at 674, 698, and 706 July. Trends in Kansas City are mixed to down with no objectives. Support is at 660, 647, and 640 July, with resistance at 705, 728, and 734 July. Trends in Minneapolis are mixed to down with no objectives. Support is at 710, 700, and 691 July, and resistance is at 743, 756, and 766 July.
General Comments: Rice closed a little higher yesterday despite weaker demand ideas. 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 rains to crops in Texas.
Overnight News:
Chart Analysis: Trends are down with no objectives. Support is at 1725, 1674, and 1641 July and resistance is at 1780, 1825, and 1843 July.CORN AND OATS
General Comments: Corn closed lower yesterday on 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. The market anticipated that crop condition ratings would be very high in the USDA reports yesterday. Oats were lower. 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: Unknown destinations bought 152,000 tons of US Corn.
Chart Analysis: Trends in Corn are mixed to down with no objectives. Support is at 438, 436, and 434 July, and resistance is at 451, 454, and 461 July. Trends in Oats are down with no objectives. Support is at 350, 343, and 330 July, and resistance is at 366, 374, and 381 July.SOYBEANS
General Comments: Soybeans and Soybean Oil closed lower yesterday on reports of increased offers from South America. Soybean Meal was higher on spreads against Soybean Oil. The weekly export sales report showed less than expected demand for US Soybeans and the monthly crush report showed weaker demand. 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. 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 rain falling in US growing areas, especially the eastern sections of the Midwest, but the weather has turned drier now and should stay that way for at least the next week. 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 down with no objectives. Support is at 1166, 1157, and 1146 July, and resistance is at 1192, 1203, and 1210 July. Trends in Soybean Meal are 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 365.00, 367.00, and 373.00 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 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 down with no objectives. Support is at 614.00, 603.00, and 597.00 July, with resistance at 629.00, 634.00, and 645.00 July. Trends in Palm Oil are mixed. Support is at 3870, 3850, and 3780 August, with resistance at 3900, 3970, and 4040 July.More By This Author:Softs Report – Tuesday, June 4
Grains Report – Monday, June 3
Softs Report – Monday, June 3
