WHEAT
General Comments: Wheat was lower yesterday on what appeared to be long liquidation from the rally last week as world prices were stable amid weather problems here in the US and around the globe. The USDA reports held little significance for Wheat as 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 to up with no objectives. Support is at 570, 561, and 544 December, with resistance at 603, 615, and 642 December. Trends in Kansas City are mixed to up with no objectives. Support is at 566, 559, and 539 December, with resistance at 607, 618, and 637 December. Trends in Minneapolis are mixed to up with no objectives. Support is at 612, 602, and 595 December, and resistance is at 630, 638, and 640 December.
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RICE
General Comments: Rice closed higher yesterday on a lack of offers in the cash market and some reports of rain in Arkansas. A hurricane came on shore on Thursday 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, but the market traded higher anyway.
Overnight News:
Chart Analysis: Trends are mixed. Support is at 1499, 1466, and 1456 November and resistance is at 1548, 1551, and 1562 November
CORN AND OATS
General Comments: Corn and Oats closed a little lower yesterday with the weaker Wheat futures. USDA showed increased production but a bigger increase in demand for reduced ending stocks in its reports yesterday. 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 cooler and drier weather for the Midwest for the week or longer.
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 up with no objectives. Support is at 354, 350, and 341 December, and resistance is at 374, 385, and 404 December
SOYBEANS
General Comments: Soybeans and the products were a little lower yesterday on the weakness in Wheat and despite the release of the USDA reports on Thursday that showed a slight reduction in production and ending stocks estimates in old crop data that carried through to the new crop. 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. 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:
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. Support is at 3930, 3710, and 3650 October, with resistance at 4200, 4300, and 4400 October.
PALM OIL AND CANOLA
General Comments: Palm Oil was lower today and made new lows for the move. Production reports indicate an increase in production at this time and disappearance has suffered with less demand from China. There is talk of increased supplies available to the market, and the trends are down on the daily charts. Canola was higher yesterday in response to the StatsCan production estimates. 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 down. Support is at 538.00, 532.00, and 526.00 November, with resistance at 583.00, 606.00, and 622.00 November. Trends in Palm Oil are mixed. Support is at 3690, 3640, and 3610 November, with resistance at 3860, 3950, and 4020 November.More By This Author:Softs Report – Thursday, Sept 12
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Grains Report – Thursday, Aug. 30
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