Grains Report - Thursday, Nov. 19

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WHEAT
General Comments: Winter Wheat markets were a little higher and mostly rode higher on the strength in Corn and Soybeans. The charts show that more moves higher are likely over time. US weather is mixed with good conditions in the majority of the country but still dry conditions in the western Great Plains. Southwest Kansas and southeast Colorado remain the driest and western Texas is also dry. Parts of eastern Ukraine and southern Russia are getting some showers too. These have been light and the condition of the crop has not improved that much. Western Australia conditions are improving after some recent rains. The demand has held well and world prices remain high. The market in Russia has remained high on limited supply as farmer hold the Wheat back due to the drought.
Overnight News: The southern Great Plains should get dry weather. Temperatures should be above normal. Northern areas should see mostly dry conditions. Temperatures will be near to above normal. The Canadian Prairies should see scattered snow showers. Temperatures should average near to below normal.
Chart Analysis: Trends in Chicago are mixed to down with objectives of 560, 538, and 530 December. Support is at 587, 580, and 576 December, with resistance at 606, 613, and 616 December. Trends in Kansas City are mixed to down with objectives of 531, 512, and 511 December. Support is at 549, 538, and 536 December, with resistance at 562, 569, and 581 December. Trends in Minneapolis are mixed to down with objectives of 539, 524, and 523 December. Support is at 546, 544, and 540 December, and resistance is at 557, 561, and 566 December.

RICE
General Comments: Rice was higher despite the continued weak tone in the domestic cash market. The market anticipates a new tender for Rice from Iraq, but one has not come so far. Reports indicate that domestic demand has been poor to average with better consumer demand more than offset by much less demand from schools and other institutions. The harvest is mostly over in northern states with good field yields reported. Southern Louisiana and Texas are harvesting the second crop and yield reports have been good. Quality is said to be very good everywhere.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be near to above normal.
Chart Analysis: Trends are mixed. Support is at 1223, 1220, and 1214 January, with resistance at 1248, 1250, and 1257 January.

CORN AND OATS
General Comments: Corn was higher on South American weather concerns. There was talk of Chinese buying as well and unknown destinations did buy 140,000 tons of US Corn this week. US weather has been great for harvesting until last week with warn and dry conditions for much of the Midwest. The weather has turned cooler and a little wetter in the last week and temperatures are cool this week although it is dry. Yield reports have generally been good except for the drought and derecho areas of Iowa. Ukraine has been in drought and southern Brazil, Uruguay, Paraguay, and into northern Argentina have also experienced drought.
Overnight News:
Chart Analysis: Trends in Corn are mixed to up with objectives of 435 December. Support is at 417, 412, and 404 December, and resistance is at 428, 431, and 434 December. Trends in Oats are mixed. Support is at 293, 291, and 290 December, and resistance is at 302, 305, and 310 December.

SOYBEANS AND PRODUCTS
General Comments: Soybeans and the products closed higher on ideas of new Chinese demand and on dry growing conditions in South America. The stocks to use ration for Soybeans is now very small and the situation is the tightest projected in years. Higher Soybeans prices are likely. China has not appeared in the daily sales announcements from USDA in over three weeks except for one time, but the country was a significant buyer in the weekly export sales report. China still needs to buy for crushers but appears to have bought what was necessary for the reserve. The weather in the US is good for any remaining harvest as it was drier and cooler this week. The weather in South America is mixed. Showers and rains have fallen in northern Brazil. Southern Brazil, northern Argentina, Uruguay, and Paraguay have missed out on good rains but have seen a shower or two. Soybeans are actively being planted in central and northern Brazil. The dry weather is causing yield concerns.
Overnight News:
Chart Analysis: Trends in Soybeans are up with objectives of 1203 January. Support is at 1162, 1155, and 1138 January, and resistance is at 1184, 1196, and 1208 January. Trends in Soybean Meal are mixed to up with objectives of 405.00 December. Support is at 391.00, 384.00, and 380.00 December, and resistance is at 401.00, 404.00, and 407.00 December. Trends in Soybean Oil are up with objectives of 3960 December. Support is at 3800, 3720, and 3660 December, with resistance at 3870, 3900, and 3930 December.

CANOLA AND PALM OIL
General Comments: Palm Oil closed lower on weak November export data from the private sources. Chart trends are up. It is seasonally a time for trees to produce more due to more regular rains. Getting workers to do the harvest remains hard and the lack of labor has been a big problem. Canola were higher on strong demand ideas and dry weather in South America. Very strong Palm Oil prices have made buying Soybean and Canola oils the better option. Trends are up in Canola. Canola farmers have reduced selling by now so demand is chasing after fewer supplies. Harvest in the Prairies is done and yields are reported to be very strong.
Overnight News:
Chart Analysis: Trends in Canola are up with objectives of 582.00 January.. Support is at 564.00, 560.00, and 556.00 January, with resistance at 571.00, 574.00, and 577.00 January. Trends in Palm Oil are mixed to up with no objectives. Support is at 3270, 3200, and 3170 February, with resistance at 3350, 3380, and 3410 February.