Grains Report - Friday, Aug. 7

WHEAT
General Comments: Winter Wheat markets were lower and made new lows for the move. Egypt bought a lot of Russian and Ukrainian Wheat at prices that were below the tender results of the previous week. The US export sales report was good. News that Russian yields were much improved from early in the harvest has been negative. Spring Wheat is developing under good growing conditions in the US and Canada. Yield reports from the central and southern Great Plains have been variable, but generally a little better than expected. Soft Red Winter yields are high. It is still dry in France and Russia and now Spring Wheat areas of Russia are being affected. Russian Winter Wheat yields have improved over time as harvesters move into areas that had better growing conditions. Australia remains in good condition and is getting beneficial rains in most areas. About half of the Argentine Wheat belt is too dry.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be above normal. Northern areas should see scattered showers. Temperatures will average near to above normal. The Canadian Prairies should see scattered showers. Temperatures should average near to above normal. Egypt bought 410,000 tons of Russian and Ukrainian Wheat.
Chart Analysis: Trends in Chicago are down with objectives of 491 and 411 September. Support is at 494, 488, and 484 September, with resistance at 515, 517, and 519 September. Trends in Kansas City are down with objectives of 415 and 411 September. Support is at 412, 406, and 400 September, with resistance at 424, 431, and 438 September. Trends in Minneapolis are down with objectives of 494, 478, and 468 September. Support is at 492, 486, and 480 September, and resistance is at 500, 506, and 512 September.

RICE
General Comments Rice was lower in response to the bad weekly export sales report and the increasing harvest. The harvest is active near the Gulf Coast, but rains are still being reported to interrupt progress. Field yields are reported to be high and the quality of the Rice is called very good. New crop prospects appear solid for increased production in the coming year. The area is larger and the growing conditions are mostly good. The crops are called in good condition in Mississippi, Arkansas, and Missouri.
Overnight News: The Delta should get scattered showers. Temperatures should be near to below normal.
Chart Analysis: Trends are mixed to down with objectives of 1138, 1116, and 1111 September. Support is at 1148, 1135, and 1120 September, with resistance at 1160, 1176, and 1183 September.

CORN AND OATS
General Comments Corn was higher as good demand news went against ideas of potential record yields for the US crop. The weekly export sales report was good. The crop is not likely to be a record as the populations of ears are not seen, at least in Central Illinois. The crop looks beautiful with good color and big stalks, but the ear count was less so the end result was a very good but not record-setting crop. It remains dry in west-central Iowa to cut yields there. Ideas of huge yields from the US crop this year have futures under pressure. Rains fell in many of the drier areas of the Midwest again last week and greatly benefitted the crops. It has turned cooler and is still wet and is considered good for kernel fill. About 15% of the Midwest is still too dry. Trends are down in Corn. Meats processors are back and are operating at close to capacity. Meats wholesale and retail prices are stable. Recent reverses by some states on opening orders are hurting demand ideas for ethanol, but ethanol demand has been increasing. US prices are high in the world market so export sales of Corn are expected to be less.
Overnight News:
Chart Analysis: Trends in Corn are down with objectives of 299 September. Support is at 308, 307, and 302 September, and resistance is at 315, 318, and 322 September. Trends in Oats are mixed to down with objectives of 262 and 249 September. Support is at 272, 270, and 267 September, and resistance is at 278, 280, and 284 September.

SOYBEANS AND PRODUCTS
General Comments: Soybeans were a little lower on great growing conditions for the US crop. The weekly export sales report was good. China bought 126,000 tons of US Soybeans yesterday. The market keeps worrying about new sales to China as tensions between the US and China grow. China has become a much more active buyer of Soybeans here in the US and has promised to ramp up purchases in order to comply with commitments it made under the Phase One trade deal. Its commitments have been thrown into doubt by the continued political tensions between the two countries. China has remained a very active buyer in South America even as it has increased Soybeans buying here in the US, so the overall amount taken from the US might not match the hopes of the trade. Brazil prices are higher for the rest of the world as it starts to run out of Soybeans to export, so China and the rest of the world will look to the US for additional supplies. The US weather is considered good for growing Soybeans with cooler temperatures and beneficial rains. About 15% of the Midwest is still too dry. The central Illinois crop looks good, but short. The color of the crops is very good and most fields are weed-free.
Overnight News: China bought 456,000 tons of US Soybeans.
Chart Analysis: Trends in Soybeans are down with objectives of 866 August. Support is at 880, 871, and 867 August, and resistance is at 886, 894, and 903 August. Trends in Soybean Meal are down with objectives of 278.00 and 272.00 August. Support is at 281.00, 279.00, and 272.00 August, and resistance is at 284.00, 286.00, and 289.00 August. Trends in Soybean Oil are up with objectives of 3300 August. Support is at 3140, 3090, and 3040 August, with resistance at 3190, 3210, and 3230 August.

CANOLA AND PALM OIL
General Comments: Palm Oil closed higher on reports of less production from Malaysia and Indonesia. Flooding and a lack of workers for the plantations have been the reasons to see less production. Higher world petroleum prices helped with ideas of increased bio fuels demand. Palm Oil has been hoping for better demand from importers as world economies slowly open after being closed by the Coronavirus epidemic. Indonesia continues to focus its Palm Oil on internal demand for bio fuels. Canola was mostly a little higher. Crop conditions are mostly good and farmers have been selling old crop supplies. The weather has been warmer the past couple of weeks and most areas have seen rain.
Overnight News:
Chart Analysis: Trends in Canola are mixed to down with objectives of 484.00 and 478.00 November. Support is at 486.00, 485.00, and 482.00 November, with resistance at 495.00, 499.00, and 502.00 November. Trends in Palm Oil are mixed to up with objectives of 2850, 2910, and 3140 October. Support is at 2690, 2610, and 2560 October, with resistance at 2810, 2830, and 2870 October.