Grains Report - Monday, Aug. 17

WHEAT
General Comments: Wheat was higher last week as reports of more war between Ukraine and Russia were heard and the USDA reports were digested. Ukraine bombed Russian ports overnight using drones in a new escalation in the war. The price action was also tied to reports of reduced exports due to increased tensions in the Black Sea with Ukrainian bombing keeping Russia unable to ship anything through the Azov Sea and world weather. The harvest has been interrupted by too much rain in Texas and harvest yield reports remain low The crop harvest is over 81% complete. Spring Wheat is being harvested and is rated 51% good to excellent. The harvest is underway. Conditions are good in the US Midwest, but Europe has been too hot. The weather is now featuring scattered showers for parts of the Midwest along with moderate temperatures after a got week last week. The Gret Plains should stay hot and dry. USDA reduced production slightly to 1.531 billion bu and left total demand unchanged at 1.874 billion bu for a cut in ending stocks at 717 billion bushels.
Chart Analysis: Trends in Chicago are mixed. Support is at 646, 626, and 620 September, with resistance at 686, 711, and 718 September. Trends in Kansas City are mixed. Support is at 719, 691, and 679 September, with resistance at 777, 784, and 790 September. Trends in Minneapolis are not available.

RICE
General Comments: Rice closed lower last week on harvest pressure and selling in response to the USDA reports. USDA increased harvested area and production. Demand was also increased but ending stocks were still higher at 36.0 million cwt. Long grain ending stocks were also higher at 20.3 million cwt, from 17.7 million before. USDA said that Long Grain Production was estimated at 106.7 million cwt and demand was estimated at 167 cwt. Brazil prices are also strong on ideas of short production and El Nino fears for production on the next crop. Condition was little changed from the previous week Harvest is active in most states. Demand remains moderate to poor for US Rice and was moderate to poor last week.
Chart Analysis: Trends are mixed to up. Support is at 1340, 1393, and 1292 September and resistance is at 1444, 1456, and 1468 September.

CORN AND OATS
General Comments: Corn was higher last week in response to the USDA reports. Weakness was also seen on response to increased production estimates from Brazil. USDA raised harvested area to 88.6 million acres from 87.4 million previously. Yield was cut to 180.7 bu/acre from 184 bu/scre. Production was estimated at 16.013 billion bushels from 16.000 billion previously. Domestic demand was left unchanged at 13.055 billion bushels but export demand was increased to 3.275 billion bushels from 3.2 billion before. Ending stocks were cut to 1.653 billion bushels from 1.7 billion before. Selling was see based on reports of more big rains in much of the Midwest. Northwest areas did especially benefit, and central areas of the Midwest were helped as the coverage area expanded. There is still too much hot and dry weather in the western and southern Midwest but moderating conditions in Europe The export sales report showed that demand was at the lower end of expectations. Ukraine and Russia are back at war again and shipping is very limited in both countries. It should be warm with showers in the northern Midwest this week but other areas should stay mostly dry. The crop conditions are unchanged from last week and below aa year ago. Dent is starting and progress is ahead of normal. Temperatures in the Midwest should be cooler this week. Oats were higher last week. Production and demand were increased by USDA yesterday to leave ending stocks unchanged.
Chart Analysis: Trends in Corn are mixed. Support is at 435, 427, and 421 September, and resistance is at 472, 478, and 484 September. Trends in Oats are down. Support is at 307, 300, and 294 September, and resistance is at 333, 349, and 347 September.

SOYBEANS
General Comments: Soybeans and the products were a little higher last weEk on reports of more Chinese demand and because of reports for rain in the northern half of the Midwest and into central areas. USDA said that harvested area increased to 85.8 million acres from 84.4 million before. Yield was estimated at 52.7 bu/acre from 53 bu /acre before. The crush was increased by 30 million bu to 2.780 billion bushels and export demand was left unchanged. Ending stocks were estimated at 320 million bushels from 310 million before. Northwest areas could especially benefit. It is still mostly hot and dry in the southern Midwest. Rapid blooming and setting pods progress was shown by USDA this week and reports of good conditions continue. Condition is slightly lower than last week and below a year ago. Cooler temperatures and wet weather in northern areas are expected for the next week in the Midwest. Southern areas should stay hot and dry
Overnight News: China bought 136,000 tons of US Soybeans.
Analysis: Trends in Soybeans are down. Support is at 1140, 1122 and 1110 September, and resistance is at 1197, 1210, and 1225 September. Trends in Soybean Meal are down. Support is at 305.00, 302.00, and 299.00 September, and resistance is at 320.00, 323.00,and 328.00 September. Trends in Soybean Oil are mixed. Support is at 6660, 6540, and 6440 September, with resistance at 7110, 7260, and 7290 September.

PALM OIL AND CANOLA
General Comments: Palm Oil was higher today on ideas of strong demand. Canola was higher yesterday.
Chart Analysis: Trends in Canola are mixed to up. Support is at 778.00, 769.00, and 754.00 November, with resistance at 815.00, 820.00, and 839.00 November. Trends in Palm Oil are mixed. Support is at 4600, 4530, and 4400 October, with resistance at 4740, 4780, and 4820 October.