Grains Report - Tuesday, Sep. 14

WHEAT
General Comments: Wheat was lower in both markets yesterday in reaction to the USDA reports and as the Ukraine-Russia war continues and threatens any exports from the region. The reports feature no changes to either supply or demand but the average farm price was increased by 20 cents to reflect the market now. The president of Ukraine has said that his country and Russia would sit down soon to try to find a way for grains exports to resume from both countries, and Russia said yesterday that a proposal by Ukraine was not practical. The US Winter Wheat harvest is over. Spring Wheat is being harvested and is rated 51% good to excellent. Conditions are mixed 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 dry but less hot.
Chart Analysis: Trends in Chicago are mixed. Support is at 716, 706, and 685 December, with resistance at 796, 808, and 820 December. Trends in Kansas City are mixed. Support is at 793, 743, and 747 December, with resistance at 858, 868, and 880 December. Trends in Minneapolis are not available.

RICE
General Comments: Rice closed lower in response to the USDA reports. USDA showed a slight decrease in harvested area but an uptick in yields for an overall very small decrease in production of All Rice. Beginning stocks and ending stocks were also increased but demand was untouched. Long grain featured increased beginning stocks and decreased production for an increase in ending stocks to 21.4 million cwt from 20.3 million cwt last month.. Brazil prices are strong on ideas of short production and El Nino fears for production on the next crop. Condition in the US was steady from the previous week. Harvest is active in most states and is 43% complete. Demand remains moderate to poor for US Rice and was moderate last week. El Nino is threatening production in Asia and Indian prices remain high and are going higher, Trends are mixed on the daily charts and are up on the weekly charts,
Chart Analysis: Trends are up. Support is at 1584, 1550, and 1510 November and resistance is at 1622, 1634, and 1646 November.

CORN AND OATS
General Comments: Corn was higher yesterday in response to the USDA reports and ideas of more potential losses from stressful weather around the world but especially in Europe and Asia. USDA cut back on harvested area and yields for production at 15.800 billion bushels. Feed demand was cut to 5.9aa50 billion bushels and total demand was cut to 16.180 billion bushels. Ending stocks were estimated at 1.567 billion bushels from 1.653 billion last month. There is still too much hot and dry weather in the western and southern Midwest but moderating conditions in Europe. Ukraine and Russia are back at war again and shipping is very limited in both countries. It should be cooler with drier weather in the Midwest this week. The crop conditions were steady last week and below aa year ago. Progress is ahead of normal and the harvest has started. Temperatures in the Midwest should be cooler this week. Oats were a little lower and USDA made no changes to supply or demand.
Overnight News: Mexico bought 264,000 tons of US Corn.
Chart Analysis: Trends in Corn are mixed . Support is at 521, 513, and 497 December, and resistance is at 554, 560, and 566 December. Trends in Oats are mixed. Support is at 360, 352, and 347 December, and resistance is at 384, 396, and 408 September.

SOYBEANS
General Comments: Soybeans and the products were lower in response to the USDA reports. USDA showed increased harvested area and yields for production increases to 4.535 billion bushels. Exports were higher and ending stocks were cut to 310 million bushels from 320 million last month. It is still mostly hot and dry in the southern and western Midwest. Leaves are dropping according to USDA this week. Condition is below a year ago and steady from the previous week. Cooler temperatures and drier weather in northern areas are expected for the next week in the Midwest. Southern areas are hot and dry.
Analysis: Trends in Soybeans are mixed. Support is at 1290, 1256, and 1244 November, and resistance is at 1340, 1352, and 1364 September. Trends in Soybean Meal are up. Support is at 341.00, 336.00, and 333.00 October, and resistance is at 351.00, 360.00,and 366.00 October. Trends in Soybean Oil are mixed. Support is at 6900, 6780, and 6630 October, with resistance at 7280, 7370, and 7470 October.

PALM OIL AND CANOLA
General Comments: Palm Oil was higher last week and higher today on production concerns. Canola was higher last week.
Chart Analysis: Trends in Canola are mixed to up. Support is at 819.00, 807.00, and 793.00 November, with resistance at 844.00, 856.00, and 868.00 November. Trends in Palm Oil are mixed. Support is at 4850, 4800, and 4750 November, with resistance at 5030, 5090, and 5150 November.