Grains Report - Monday, August 31

WHEAT
General Comments: Winter Wheat markets were higher last week but lower on Friday. Minneapolis Spring Wheat seems to have a lot of selling near the 530 September level and this has kept the futures market in a sideways trend. Trends in the Winter Wheat markets have been up. The market is still reacting to which way Wheat prices are going here and overseas. Spring Wheat was developing under good growing conditions in both the US and Canada. Harvest has expanded and yield reports are solid in the northern Plains. 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. 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 above normal. Northern areas should see isolated showers. Temperatures will average near to above normal. The Canadian Prairies should see isolated showers. Temperatures should average near to above normal.
Chart Analysis: Trends in Chicago are up with objectives of 558 and 574 December. Support is at 549, 542, and 529 December, with resistance at 560, 571, and 574 December. Trends in Kansas City are up with objectives of 482 and 502 December. Support is at 465, 462, and 457 December, with resistance at 476, 483, and 495 December. Trends in Minneapolis are up with objectives of 547 and 561 December. Support is at 533, 530, and 525 December, and resistance is at 545, 549, and 554 December.

RICE
General Comments: Rice was higher again last week as Hurricane Laura came onshore. The damage from the storm was intense near the Gulf Coast but most if not all of thee Rice had already been harvested. The storm diminished quickly and little damage was reported in Mississippi, Arkansas, of Missouri. 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. Texas and southern Louisiana field yield reports are strong. Quality is called average to above average.
Overnight News: The Delta should get big rains from Laura and Marco. Temperatures should be near to above normal.
Chart Analysis: Trends are mixed. Support is at 1225, 1204, and 1185 November, with resistance at 1260, 1267, and 1280 November.

CORN AND OATS
General Comments: Corn was higher in reaction to demand and the hot and dry weather seen in the Midwest last week. The hot and dry conditions are in Iowa and northern Illinois right now, although some sections of Iowa got some sowers on Friday. Northern Illinois got showers on Friday night. The rains were beneficial but not enough to reverse any damage to the crops, especially in Iowa. Much more rain will be needed soon just to keep ratings stable. Better rains fell in Wisconsin and Minnesota and crops there are holding. The market has done a complete u-turn from the lows of just a couple of weeks ago but need not rally all that much more. There is a crop out there and it will be harvested soon. That means that seasonal harvest pressure should be seen in this market in the near future.
Overnight News: China bought 596,000 tons of US Corn.
Chart Analysis: Trends in Corn are up with objectives of 365 December. Support is at 355, 348, and 345 December, and resistance is at 362, 363, and 371 December. Trends in Oats are mixed. Support is at 265, 261, and 260 December, and resistance is at 262, 263, and 271 December.

SOYBEANS AND PRODUCTS
General Comments: Soybeans and the products were higher, and Soybeans and Soybean Meal made new highs for the move. Soybeans are in a weather market. It was hot and dry in much of the Midwest last week and the Soybeans suffered. Rains were reported on Friday in Wisconsin and Minnesota and showers were reported in Iowa. Some of the rains came to northern Illinois on Friday night. The change in the weather pattern should help the Soybeans on their way to maturity. Cooler temperatures are seen behind the front, but it was the rain that was most important. Iowa got short changed but the rest of the region got beneficial rains. The weather will start to lose its bullish influence on prices in the next few weeks and the harvesters get ready to roll.
Overnight News:
Chart Analysis: Trends in Soybeans are up with no objectives. Support is at 940, 920, and 910 November, and resistance is at 949, 964, and 968 November. Trends in Soybean Meal are up with objectives of 306.00 October. Support is at 301.00, 298.00, and 296.00 October, and resistance is at 308.00, 313.00, and 315.00 October. Trends in Soybean Oil are up with objectives of 3400 October. Support is at 3250, 3190, and 3150 October, with resistance at 3380, 3430, and 3460 October.

CANOLA AND PALM OIL
General Comments: Palm Oil closed higher last week on the back of rallies in Chicago and Dalian Soybean Oil. It was closed today for a holiday. Demand reports from the private surveyors were down 16% for the month to date. Wire reports from Indonesia last week highlighted more than 8% less production and 7% exports from that country. 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. Soybean Oil was a higher and Canola was also a little higher. Canola closed higher despite good growing conditions in Canada and the stronger Canadian Dollar. The strength in the Canadian Dollar is more about weakness in the US Dollar than anything going on in Canada. Crop conditions are mostly good and farmers have been selling old crop supplies. The weather has been warm and most areas have seen rain.
Overnight News:
Chart Analysis: Trends in Canola are up with no objectives. Support is at 495.00, 491.00, and 490.00 November, with resistance at 502.00, 505.00, and 508.00 November. Trends in Palm Oil are mixed. Support is at 2700, 2650, and 2570 November, with resistance at 2760, 2790, and 2800 November.