Grains Report - Thur., May 7

WHEAT
General Comments: Wheat closed lower in both markets as much improved rains are forecast for later this week in Colorado and Kansas. Isolated showers were reported and are forecast in other parts the western Great Plains, but these are not enough to solve any problems. President Trump announced he was pausing Operation Freedom to give the US and Iran a chance to work out o cease fire deal. The two sides are apparently close to signing a memorandum of understanding about a deal. Conditions are too dry in much of the US Great Plains but remain wet in the US Midwest and in western Europe for best quality potential. The weather is now featuring precipitation is forecast for parts of the Midwest along with variable temperatures. The strait of Hormuz remains closed.
Chart Analysis: Trends in Chicago are mixed to down. Support is at 602, 591, and 578 July, with resistance at 635, 650, and 671 July. Trends in Kansas City are mixed. Support is at 645, 629, and 605 July, with resistance at 720, 726, and 732 July. Trends in Minneapolis are not available.

RICE
General Comments: Rice closed higher again yesterday after making new lows for the move as the long liquidation before First Notic Day stopped and deliveries started. The daily trends are mixed. Traders anticipate less production this year in the US and around the world due to low prices. USDA said that Rice planted area would be about 12% less in the coming year. Demand remains moderate for US Rice but export demand has been less lately.
Chart Analysis: Trends are up. Support is at 1178, 1152, and 1117 July and resistance is at 1224, 1236, and 1248 July.

CORN AND OATS
General Comments: Corn was lower yesterday as the Iran war continues and that strait of Hormuz remains closed. President Trump announced he was pausing Operation Freedom to give the US and Iran a chance to work out o cease fire deal. The two sides are apparently close to signing a memorandum of understanding about a deal . Farmers were waiting to plant in the north, but most in the central and southern Midwest are planning now and strong demand continues. It looks drier this week, but not completely dry and Chicago has seen more rain. There are still excessive supplies as seen in the recent USDA reports after prices were trending higher on strong demand. Temperatures in the Midwest should be generally cool for the next week. Conditions are called good in Argentina and big production is expected there. Oats were higher and trends are mixed on the daily charts.
Chart Analysis: Trends in Corn are down. Support is at 465, 461, and 452 July, and resistance is at 477, 487, and 493 July. Trends in Oats are mixed. Support is at 342, 337, and 330 July, and resistance is at 362, 368, and 374 July

SOYBEANS
General Comments: Soybeans and the products were lower yesterday. President Trump announced he was pausing Operation Freedom to give the US and Iran a chance to work out o cease fire deal. The two sides are apparently close to signing a memorandum of understanding about a deal. Temperatures have been cool in the Midwest. There is talk that more Soybeans could be planted if the weather does not improve for Corn planting soon. The big South American harvests are also weighing on prices. Big South American crops are being harvested, and ideas are that Chinese buying could be interrupted due to the Iran war and new import rules imposed by China. South American sources said that the Brazil crops are now more than 65% harvested. The tariff wars between the US and other countries add to cost of US Soybeans. Temperatures will be generally cool in the Midwest for the next week.
Analysis: Trends in Soybeans are mixed. Support is at 1179, 1169, and 1157 July, and resistance is at 1221, 1230, and 1251 July. Trends in Soybean Meal are mixed. Support is at 316.00, 313.00, and 310.00 July, and resistance is at 331.00, 335.00,and 338.00 July. Trends in Soybean Oil are mixed to up. Support is at 7150, 6940, and 6690 July, with resistance at 7680, 7740, and 7800 July.

PALM OIL AND CANOLA
General Comments: Palm Oil followed the outside markets lower on hopes for a peace deal between the US and Iran. Canola was also lower on the Iran war news. again
Chart Analysis: Trends in Canola are down. Support is at 733.00, 729.00, and 709.00 July, with resistance at 758.00, 769.00, and 772.00 July. Trends in Palm Oil are mixed. Support is at 4450, 4350, and 4280 July, with resistance at 4740, 4800, and 4870 July