Grains Report - Tuesday, July 21

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WHEAT

General Comments: Wheat closed lower in consolidation trading in both markets yesterday after the big rally last week.  The rally was tied to increased tensions in the Black Sea with Russia unable to ship anything through th4 Azov Sea and to the USDA reports and world weather found new footing.  The harvest has been interrupted by too much rain in Texas and harvest yield reports remain low  The crop harvest us now about three quarters complete.  Spring Wheat has been heading and is rated 53% good to excellent.  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 moderate  temperatures after a got week last week.  The Great Plains should stay hot and dry except for Texas.

Overnight News:

Chart Analysis: Trends in Chicago are up.  Support is at 660, 647, and 629 September, with resistance at 700, 712, and 724 September.  Trends in Kansas City are up.  Support is at 691, 679, and 659 September, with resistance at 734, 758, and 770 September. Trends in Minneapolis are not available

RICE

General Comments: Rice closed a little lower yesterday after trading lower early in the session on speculative selling.  USDA said that Rice planted and harvested area is estimated to be sharply lower this year, leading to much lower production and tighter ending stocks estimates.  Emergence is about average, and condition has deteriorated 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 1416, 1428, and 1440 September.

CORN AND OATS

General Comments:  Corn was higher yesterday as the rally tied to too much rain in many Midwest growing areas and hot and dry weather in the western Midwest and in Europe remained  It should be warm with showers in the northern Midwest this week but other areas should stay mostly dry.  The crop conditions are strong but unchanged from last week and below aa year ago.  Forecasts for good growing conditions continue in the Midwest.  Dough is starting and progress is ahead of normal.  Temperatures in the Midwest should be cooler this week.  Oats were higher yesterday and trends are up on the weekly charts and are up on the daily charts.

Chart Analysis:  Trends in Corn are up.  Support is at 436, 427, and  421 September, and resistance is at 454, 459, and 465 September.  Trends in Oats are up.  Support is at 328, 318, and 307 September, and resistance is at 364, 370, and 376 September.

SOYBEANS

General Comments: Soybeans and Soybean Meal were higher and Soybean Oil was lower yesterday on reports of improved conditions in the Northern Midwest but hot and dry weather in other areas and on new China demand news.  Rapid blooming and setting pods progress was shown by USDA this week and reports of good conditions continue.  Condition is rated high by USDA in the latest reports but unchanged from last week and below a year ago.  Warmer temperatures and wet weather in northern areas are expected for the next week in the Midwest.  The big South American harvests are also weighing on prices.

Analysis:  Trends in Soybeans are mixed to up.  Support is at 1208, 1185, and 1170 August, and resistance is at 1232, 1244, and 1256 August.  Trends in Soybean Meal are up.  Support is at 315.00, 309.00, and 305.00 August, and resistance is at 325.00, 329.00,and 333.00 August.  Trends in Soybean Oil are mixed.  Support is at 7310, 7170, and 6940 August, with resistance at 7550, 7680, and 7810 August.

PALM OIL AND CANOLA

General Comments:   Palm Oil closed lower today on weakness in the outside markets.  Canola was higher yesterday.

Chart Analysis: Trends in Canola are mixed to up.  Support is at 797.00, 780.00, and 768.00 November, with resistance at 824.00, 836.00, and 848.00 November.  Trends in Palm Oil are mixed.  Support is at 4530, 4490, and 4430 October, with resistance at 4560, 4740, and 4780 October.