Grains Report - Friday, Sept. 11

WHEAT
General Comments: Wheat markets were higher as Black Sea prices have been firming. The Russian farmer is not selling to exporters as they can get better prices internally. Spring Wheat was developing under good growing conditions in both the US and Canada. However, a frost was reported in these areas this week and some light damage is possible to some crops. Harvest has expanded and yield reports are solid in the northern Plains. It is still dry in France and Russia. Australia remains in good condition and is getting beneficial rains. About half of the Argentine Wheat belt is too dry and wire reports indicate that production in the worst areas could be 50% of normal.
Overnight News: The southern Great Plains should get scattered showers. Temperatures should be near normal. Northern areas should see isolated showers. Temperatures will average below normal. The Canadian Prairies should see isolated showers. Temperatures should average below normal.
Chart Analysis: Trends in Chicago are mixed to down with objectives of 530, 509, and 504 December. Support is at 542, 539, and 527 December, with resistance at 557, 560, and 570 December. Trends in Kansas City are mixed. Support is at 473, 467, and 465 December, with resistance at 485, 490, and 496 December. Trends in Minneapolis are mixed to down with objectives of 505 December. Support is at 533, 530, and 525 December, and resistance is at 539, 544, and 545 December.

RICE
General Comments: Rice was a little higher. The market is looking for Rice and is not finding much selling interest from producers. New crop prospects appear solid for increased production in the coming year but there are questions on quality after storms hit Texas, Louisiana, and Arkansas in recent weeks. The area is larger and the growing conditions were mostly good until the storms hit. The crops are called in good condition in Mississippi, Arkansas, and Missouri. Texas and southern Louisiana field yield reports are strong. Quality has been mixed, with some Rice grading well and some not so well due to the storms. Demand ideas are strong. Brazil is reported to have bought a couple of cargoes of Rice late last week as it has run short. The fact that Brazil is buying from the US means that competition for sales in the Western Hemisphere will be significantly less this year and should support somewhat higher prices for US Rice and futures markets.
Overnight News: The Delta should get isolated showers. Temperatures should be near to below normal.
Chart Analysis: Trends are mixed. Support is at 1237, 1231, and 1220 November, with resistance at 1260, 1267, and 1280 November.

CORN AND OATS
General Comments: Corn was higher in front of the USDA reports that will be released on Friday. There was no demand news and funds and other speculators were buyers. The rains seen over the weekend were beneficial and more are coming. It is much cooler in the Midwest now and a frost was reported in northern Minnesota and northern North Dakota. Demand has also been strong with a lot of Chinese buying. China has bought a lot of US Corn lately to fulfill short domestic production. China has also been offering Corn out of state reserves to try to keep the market supplied and has apparently succeeded as demand for the domestic Corn has tailed off in the latest round of offers. The US harvest is getting ready to start and there will be less production than had been estimated earlier by the trade. The production should still be enough to add to ending stocks even with the strong Chinese demand.
Overnight News:
Chart Analysis: Trends in Corn are up with objectives of 367 and 374 December. Support is at 359, 354, and 348 December, and resistance is at 371, 374, and 377 December. Trends in Oats are mixed. Support is at 269, 265, and 262 December, and resistance is at 274, 279, and 282 December.

SOYBEANS AND PRODUCTS
General Comments: Soybeans and the products were mixed. Soybeans made new highs for the move and Soybean Oil is locked in a range. Rains and cooler temperatures were seen in the Midwest starting on Sunday and should continue through the balance of this week. The change in the weather pattern should help the Soybeans on their way to maturity. A freeze was reported in the Dakotas yesterday and some minor damage to Soybeans is expected. The production totals are expected to be big, although not as large as the original forecasts made by private analysts. The weather will start to lose its bullish influence on prices in the next few weeks and the harvesters get ready to roll. Demand from China has held strong but might be about to end. China is now booking Soybeans into dates that are close to the first shipping dates from Brazil and will no doubt start to look to the south for additional supplies. Prices for new crop Soybeans are cheaper in Brazil.
Overnight News: China bought 262,000 tons of US Soybeans and unknown destinations bought 222,000 tons of US Soybeans.
Chart Analysis: Trends in Soybeans are up with no objectives. Support is at 967, 959, and 957 November, and resistance is at 982, 986, and 992 November. Trends in Soybean Meal are mixed to up with objectives of 315.00 and 322.00 October. Support is at 308.00, 306.00, and 302.00 October, and resistance is at 316.00, 318.00, and 321.00 October. Trends in Soybean Oil are mixed. Support is at 3260, 3200, and 3180 October, with resistance at 3390, 3430, and 3460 October.

CANOLA AND PALM OIL
General Comments: Palm Oil closed lower on weaker export data from the private services. Demand reports from the private surveyors were down and this is becoming a bigger problem for higher prices. Production ideas are down as workers for the plantations are harder to find, but the market appears to have priced itself out of the demand base. Flooding and a lack of workers for the plantations have been the reasons to see less production in Malaysia. 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 higher as a freeze is in the forecast and could threaten some crops. Canola closed lower after the freeze event in the Prairies. The freeze apparently did not damage that much of the crop. Crop conditions are mostly good and farmers have been selling old crop supplies.
Overnight News:
Chart Analysis: Trends in Canola are mixed to up with objectives of 521.00 November. Support is at 505.00, 502.00, and 501.00 November, with resistance at 515.00, 518.00, and 521.00 November. Trends in Palm Oil are mixed. Support is at 2760, 2700, and 2650 November, with resistance at 2900, 2920, and 2940 November.