Grains Report - Wednesday, June 10

Photo by Kelly Sikkema on Unsplash

WHEAT
General Comments: Wheat closed higher in both markets again yesterday on ideas that futures were oversold and despite forecasts and reports for improving weather in Wheat areas. The crop condition ratings are 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 10% done. USDA showed deteriorating crop conditions this year as rains are now occurring in the central areas of the Great Plains and are forecast to continue. Spring Wheat progress is ahead of normal, and conditions are rated as better than the previous week. Conditions are good in the US Midwest and in much of Europe, but Russia has been too cols. The weather is now featuring mostly dry conditions for parts of the Midwest along with warming temperatures.
Chart Analysis: Trends in Chicago are down. Support is at 576, 572, and 566 July, with resistance at 661, 679, and 688 July. Trends in Kansas City are down. 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 a little lower yesterday on good weather in growing areas and despite 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. Emergence is ahead of average, and condition slipped a little last week. Demand remains moderate to poor for US Rice,
Chart Analysis: Trends are mixed. Support is at 1215, 1188, and 1176 July and resistance is at 1277, 1301, and 1308 July.

CORN AND OATS
General Comments: Corn was a little higher yesterday in consolidation trading and ideas that futures were very oversold. The crop conditions are strong in the Midwest and on news of lower petroleum prices because of the Iran war. Strong planting and emergence progress are reported in reports released by USDA last week and forecasts for good growing conditions continue in the Midwest. Planting has been very active in all of the Midwest and is now almost done. Emergence is about normal. Condition is rated to be very good and about the same as the previous week. It looks dry this week. Temperatures in the Midwest should be turn warmer for the next week. Conditions are called good in Argentina and big production is expected there. Oats were a little higher and trends are down on the weekly charts.
Overnight News: Unknown destinations bought 120,000- tons of US Corn.
Chart Analysis: Trends in Corn are mixed to down. Support is at 410, 407, and 404 July, and resistance is at 449, 452, and 455 July. Trends in Oats are mixed to down. Support is at 307, 301, and 295 July, and resistance is at 367, 377, and 387 July.

SOYBEANS
General Comments: Soybeans and Soybean Meal were lower and Soybean Oil was higher 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, but down a stick from the previous week. Futures were also lower on the lack of news on China and Iran although the war in Iran was hotter over the weekend. Temperatures have been cool in the Midwest. Warm temperatures are expected for the next week. 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.
Overnight News:
Analysis: Trends in Soybeans are down. Support is at 1112, 1090, and 1072 July, and resistance is at 1157, 1173, and 1205 July. Trends in Soybean Meal are down. Support is at 304.00, 301.00, and 298.00 July, and resistance is at 326.00, 331.00,and 335.00 July. Trends in Soybean Oil are mixed to down. Support is at 7290, 7100, and 7020 July, with resistance at 7840, 7970, and 8080 July.

PALM OIL AND CANOLA
General Comments: Palm Oil was higher today along on reports of stzronger export demand and Canola was higher as conditions remain hot and dry in the Prairies.
Chart Analysis: Trends in Canola are mixed. Support is at 745.00, 736.00, and 729.00 July, with resistance at 796.00, 802.00, and 808.00 July. Trends in Palm Oil are mixed. Support is at 4390, 4320, and 4270 August, with resistance at 4580, 4680, and 4730 August.