Grains Report - Tue., May 26

WHEAT
General Comments: Wheat closed higher in Chicago but lower in Kansas City last week on forecasts and reports for improving weather in Wheat areas and as the stalemate continues in the Iran war. The crop condition ratings are now the lowest in over 30 years in HRW areas and have provided support for prices in KC. USDA showed deteriorating crop conditions last week. Conditions are too dry in much of the US Great Plains but have been improving with scattered showers now appearing in the region. Conditions remain wet in the US Midwest and in western Europe for best quality potential. The weather is now featuring precipitation for parts of the Midwest along with variable temperatures. The strait of Hormuz remains closed.
Chart Analysis: Trends in Chicago are mixed. Support is at 631, 628, and 606 July, with resistance at 680, 688, and 700 July. Trends in Kansas City are mixed to up. Support is at 678, 664, and 649 July, with resistance at 722, 750, and 762 July. Trends in Minneapolis are not available.

RICE
General Comments: Rice closed higher again las week and at the highest level since last July in reaction to ideas of sharply reduced planted and harvested area in the US. Production was cut back mostly due to reduced planted and harvested area. Yields were actually held high in the USDA estimates. 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. Planting and emergence are ahead of average and condition is rated high. Demand remains moderate for US Rice and export demand was improved last week.
Overnight News:
Chart Analysis: Trends are up. Support is at 1237, 1215, and 1178 July and resistance is at 1323, 1324, and 1333 July.

CORN AND OATS
General Comments: Corn was a little higher last week on demand ideas and despite strong planting and emergence progress in reports released by USDA and on forecasts for improved growing conditions in the Midwest. Planting has been very active in all of the Midwest and is now over half done. It looks drier this week, but not completely dry. Temperatures in the Midwest should be variable for the next week. Conditions are called good in Argentina and big production is expected there. The export sales report was positive. Oats were lower and trends are down on the daily and weekly charts.
Chart Analysis: Trends in Corn are mixed. Support is at 452, 449, and 446 July, and resistance is at 487, 493, and 500 July. Trends in Oats are mixed. Support is at 351, 339, and 330 July, and resistance is at 370, 377, and 387 July.

SOYBEANS
General Comments: Soybeans and Soybean Oil were higher last week and Soybean Meal was lower on rapid planting progress shown by USDA and on forecasts for improving conditions. Futures were also lower on the lack of news on China and Iran. Temperatures have been cool in the Midwest but planting is ahead of normal and temperatures will turn to near normal over the weekend. Near normal temperatures are expected for the next week. 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 harvested. The tariff wars between the US and other countries add to cost of US Soybeans.
Overnight News: Unknown destinations bought 252000 tons of US Soybean Meal.
Analysis: Trends in Soybeans are mixed. Support is at 1183, 1172, and 1168 July, and resistance is at 1235, 1251, and 1262 July. Trends in Soybean Meal are mixed. Support is at 322.00, 310.00, and 304.00 July, and resistance is at 335.00, 338.00,and 342.00 July. Trends in Soybean Oil are mixed to up. Support is at 7420, 7320, and 7140 July, with resistance at 7630, 7680, and 7740 July.

PALM OIL AND CANOLA
General Comments: Palm Oil was a little higher yesterday and today on ideas of tighter supplies and Canola was higher in recovery trading yesterday.
Chart Analysis: Trends in Canola are mixed. Support is at 741.00, 729.00, and 709.00 July, with resistance at 769.00, 772.00, and 775.00 July. Trends in Palm Oil are mixed. Support is at 4350, 4320, and 4290 July, with resistance at 4540, 4720, and 4800 July.