Grains Report - Thu., July 9

Source

WHEAT
General Comments: Wheat closed lower in both markets yesterday on what appeared o be profit taking from the rally tied to the USDA reports and world weather. The harvest continues and harvest yield reports remain low. USDA said that Winter Wheat planted area was 31.52 million acres and that harvested area was just 21.210 million acres. Spring Wheat planted area was 9.290 million acres and harvested will be 9.075 million acres. Durum planted area was estimated at 1.830 million acres, with 1.778 million likely to be harvested. Wheat stocks were 920 million bushels, below most trade expectations but above the previous year. Wheat export sales were a moderate 300,000 tons. Forecasts and reports for improving weather in Wheat areas continue after a very hot week last week. The crop condition ratings are still among 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 50% done. USDA showed mostly stable crop conditions this week. Spring Wheat progress is about normal, and conditions are rated as stable from the previous week. 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 cool temperatures.
Chart Analysis: Trends in Chicago are mixed to up. Support is at 600, 594, and 582 September, with resistance at 626, 641, and 646 September. Trends in Kansas City are mixed. Support is at 627, 611, and 597 September, with resistance at 664, 674, and 692 September. Trends in Minneapolis are not available

RICE
General Comments: Rice closed a little lower yesterday on apparent profit taking by speculators. USDA said that Rice planted area is estimated at 2.017 million acres and harvested area is estimated at 1.979 million acres. Long grain planted area is 1.395 million acres and harvested area is 1.375 million. . Emergence is about average, and condition was slightly improved from last week. Demand remains moderate to poor for US Rice and was moderate to poor last week.
Chart Analysis: Trends are mixed. Support is at 1340, 1292, and 1268 September and resistance is at 1391, 1404, and 1416 September.

CORN AND OATS
General Comments: Corn was lower yesterday on profit taking from the rally tied to too much rain in many Midwest growing areas and hot and dry weather in Europe. USDA showed that stocks were a little less than trade expectations at 5.295 billion bushels, but planted and harvested area were a little higher. Corn planted area was estimated at 95.343 million acres and that harvested area is estimated at 87.4 million acres. The export sales report showed decreased volume from recent months. It should be cool with showers around this week. The crop conditions are strong but unchanged last week in the Midwest and news of lower petroleum prices because of the Iran war continues. Forecasts for good growing conditions continue in the Midwest. Silking is starting. It looks drier this week. Temperatures in the Midwest should be cool for the next week. Oats were higher yesterday and trends are still down on the weekly charts, but are up on the daily charts. Oats planted area was estimated at 2.424 million acres and harvested area was estimated at 877 million acres;
Chart Analysis: Trends in Corn are up. Support is at 406, 404, and 401 September, and resistance is at 454, 459, and 465 September. Trends in Oats are mixed. Support is at 328, 318, and 307 September, and resistance is at 345, 348, and 361 September.

SOYBEANS
General Comments: Soybeans and Soybean Meal were lower on profit taking form the rally tied to the USDA reports on reports of improved conditions in the Midwest and new China demand news. Soybean Oil was higher as the Iran war could be turning hot again. Soybeans stocks were estimated at 1.861 billion bales and ere slightly above trade estimates. The quarterly stocks report was neutral. Planted area was estimated at 85.4 million acre and harvested area Was estimated at 84.4 million. 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. Futures were also higher of news of China demand. Cooler temperatures and wet weather 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. There is more talk of Chinese buying interest in US Soybeans this morning but there has not been any actual news.
Overnight News: USDA confirmed sales of 136,000 tons of US Soybeans. Unknown destinations bought 120,000 tons of US Soybeans.
Analysis: Trends in Soybeans are up. Support is at 1163, 1154, and 1149 August, and resistance is at 1208, 1220, and 1232 August. Trends in Soybean Meal are up. Support is at 309.00, 305.00, and 301.00 August, and resistance is at 317.00, 321.00,and 323.00 August. Trends in Soybean Oil are mixed. Support is at 6540, 6440, and 6320 August, with resistance at 7120, 7310, and 7460 August.

PALM OIL AND CANOLA
General Comments: Palm Oil were lower today. Canola was higher on Chicago price action.
Chart Analysis: Trends in Canola are mixed to up. Support is at 740.00, 728.00, and 710.00 November, with resistance at 791.00, 797.00, and 803.00 November. Trends in Palm Oil are mixed. Support is at 4470, 4410, and 4290 September, with resistance at 4710, 4740, and 4820 September.