Grains Report - Tue., May 5

WHEAT
General Comments: Wheat closed a little higher in Chiago but lower in KC as dry conditions in the Great Plains continue butz much improved rains are forecast for later this week. Isolated showers were reported and are forecast in the western Great Plains, but these are not enough to solve any problems. New highs for the move were hit. 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 and the Iraan war continues.
Chart Analysis: Trends in Chicago are up. Support is at 623, 613, and 602 July, with resistance at 674, 680, and 686 July. Trends in Kansas City are up. 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 sharply higher 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 down. Support is at 1068, 1050, and 1028 July and resistance is at 1180, 1192, and 1206 July.

CORN AND OATS
General Comments: Corn was higher yesterday as the Iran war continues and that strait of Hormuz remains closed. Farmers were waiting to plant, but some 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 Chicago has seen a record amount of rain so far this Spring. 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 warm 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 up. Support is at 471, 465, and 461 July, and resistance is at 487, 493, and 499 July. Trends in Oats are down. 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 higher yesterday. 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. The Iran war continues and the strait of Hormuz remains closed, driving up costs. The US government apparently has no idea on how to manage risks in the Hormuz or how to end the war. 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 warm 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 7560, 7620, and 7680 July.

PALM OIL AND CANOLA
General Comments: Palm Oil followed the outside markets higher for the second day in a row. Canola was also higher as demand for biofuels remains strong.
Chart Analysis: Trends in Canola are up. Support is at 743.00, 733.00, and 729.00 July, with resistance at 772.00, 778.00, and 784.00 July. Trends in Palm Oil are mixed. Support is at 4450, 4350, and 4280 July, with resistance at 4740, 4800, and 4870 July