Grains Report - Mon., June 15

WHEAT
General Comments: Wheat closed higher in both markets last week as forecasts and reports for improving weather in Wheat areas continue. KC was the stronger market. The crop condition ratings are the lowest in over 30 years in HRW areas and have provided some support for prices. Crop conditions should start to show some improvement soon but were lower last week. The Winter Wheat harvest is more than 10% done. USDA showed deteriorating crop conditions this year as rains are now occurring in the central areas of the Great Plains and are forecast to continue. Spring Wheat progress is ahead of normal, and conditions are rated as better than the previous week. Conditions are good in the US Midwest and in much of Europe, but Russia has been too cols. The weather is now featuring mostly dry conditions for parts of the Midwest along with warming temperatures. The WASDE report showed less US production based on a cut in yields. The demand side was left unchanged and ending stocks were reduced to 744 million bushels. The average Farm price was also cut back to 6.00/bu in response to the current price action.
Chart Analysis: Trends in Chicago are mixed. Support is at 576, 572, and 566 July, with resistance at 661, 679, and 688 July. Trends in Kansas City are mixed. Support is at 614, 608, and 602 July, with resistance at 688, 722, and 750 July. Trends in Minneapolis are not available.

RICE
General Comments: Rice closed lower again last week on good weather in growing areas. The WASDE report showed an uptick in yields and production for long grain with all Rice left unchanged. Long grain demand was left unchanged and the ending stocks were a little higher. The average farm price was left unchanged at 12.00/cwt for long grain and 13.50 for all Rice. USDA said that Rice planted area would be about 12% less in the coming year. Emergence is ahead of average, and condition slipped a little last week. Demand remains moderate to poor for US Rice,
Chart Analysis: Trends are down. Support is at 1188, 1176, and 1164 July and resistance is at 1277, 1301, and 1308 July.

CORN AND OATS
General Comments: Corn was lower again last week on rains in the Midwest and despite a neutral WASDE report. The report showed a slight increase in beginning and ending stocks and no other changes. The crop conditions are strong in the Midwest and on news of lower petroleum prices because of the Iran war. Strong planting and emergence progress are reported in reports released by USDA last week
forecasts for good growing conditions continue in the Midwest. Planting has been very active in all of the Midwest and is now almost done. Emergence is about normal. Condition is rated to be very good and about the same as the previous week. It looks dry this week. Temperatures in the Midwest should be turn warmer for the next week. Conditions are called good in Argentina and big production is expected there. Oats were a little lower and trends are down on the weekly charts.
Chart Analysis: Trends in Corn are mixed to down. Support is at 407, 404, and 401 July, and resistance is at 449, 452, and 455 July. Trends in Oats are mixed to down. Support is at 306, 301, and 295 July, and resistance is at 367, 377, and 387 July.

SOYBEANS
General Comments: Soybeans and Soybean Meal were lower and Soybean Oil was a little higher last week on reports of improved conditions in the Midwest. Rapid planting and emergence progress was shown by USDA this week and reports of good conditions continue. Condition is rated high by USDA in the latest reports, but down a stick from the previous week. The WASDE report showed no changes from last month. Futures were also lower on the lack of news on China. Cooler temperatures are expected for the next week in the Midwest. There is talk that more Soybeans could be planted as Corn planting is more expensive. The big South American harvests are also weighing on prices.
Analysis: Trends in Soybeans are down. Support is at 1112, 1090, and 1072 July, and resistance is at 1157, 1173, and 1205 July. Trends in Soybean Meal are down. Support is at 301.00, 298.00, and 295.00 July, and resistance is at 326.00, 331.00,and 335.00 July. Trends in Soybean Oil are mixed to down. Support is at 7290, 7100, and 7020 July, with resistance at 7840, 7970, and 8080 July.

PALM OIL AND CANOLA
General Comments: Palm Oil was lower last week along on weakness in petroleum markets and was lower today as supplies remain ample. Canola was a little higher last week as conditions remain hot and dry in the Prairies.
Chart Analysis: Trends in Canola are mixed. Support is at 745.00, 736.00, and 729.00 July, with resistance at 796.00, 802.00, and 808.00 July. Trends in Palm Oil are mixed. Support is at 4390, 4320, and 4270 August, with resistance at 4580, 4680, and 4730 August.