Grains Report - Thursday, June 25

WHEAT
General Comments: Wheat closed lower in both markets yesterday as the harvest continues and as harvest yield reports remain low. Forecasts and reports for improving weather in Wheat areas continue. 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 40% 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 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 to up. Support is at 571, 566, and 560 July, with resistance at 661, 679, and 688 July. Trends in Kansas City are mixed to up. 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 much higher again yesterday despite 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 about average, and condition was slightly improved from last week. Demand remains moderate to poor for US Rice but was good last week.
Chart Analysis: Trends are mixed to down. Support is at 1232, 1176, and 1164 July and resistance is at 1301, 1308, and 1320 July.

CORN AND OATS
General Comments: Corn was a little lower again yesterday on long liquidation and despite big rains in parts of the Midwest that are causing flooding in some fields. It should be drier this week. The WASDE report showed a slight increase in beginning and ending stocks and no other changes. 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 mixed and trends are still down on the weekly charts.
Chart Analysis: Trends in Corn are mixed. Support is at 407, 404, and 401 July, and resistance is at 449, 452, and 455 July. Trends in Oats are mixed. Support is at 295, 289, and 283 July, and resistance is at 367, 377, and 387 July.

SOYBEANS
General Comments: Soybeans were a little higher and the products were a little lower yesterday 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. The WASDE report showed no changes from last month. Futures were also lower on the lack of news on China. 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.
Analysis: Trends in Soybeans are down. Support is at 1102, 1090, and 1072 July, and resistance is at 1157, 1173, and 1205 July. Trends in Soybean Meal are down. Support is at 299.00, 296.00, and 293.00 July, and resistance is at 309.00, 316.00,and 326.00 July. Trends in Soybean Oil are mixed to down. Support is at 7010, 6940, and 6680 July, with resistance at 7270, 7470, and 7600 July.