Grains Report - Thursday, Sep. 17

WHEAT
General Comments: Wheat was a little lower in both markets yesterday in consolidation trading as the Ukraine-Russia war continues and threatens any exports from the region. The reports feature no changes to either supply or demand but the average farm price was increased by 20 cents to reflect the market now. The president of Ukraine has said that his country and Russia would sit down soon to try to find a way for grains exports to resume from both countries, and Russia said yesterday that a proposal by Ukraine was not practical. The US Winter Wheat planting is 12% complete. Spring Wheat is being harvested and the harvest is almost over. Conditions are mixed in the US Midwest, but Europe has been too hot. The weather is now featuring scattered showers for parts of the Midwest along with moderate temperatures after a got week last week. The Great Plains should stay dry but less hot.
Chart Analysis: Trends in Chicago are mixed to down. Support is at 706, 685, and 677 December, with resistance at 743, 763, and 767 December. Trends in Kansas City are mixed to down. Support is at 773, 747, and 730 December, with resistance at 807, 828, and 8a58 December. Trends in Minneapolis are not available

RICE
General Comments: Rice closed a little lower yesterday on good harvest progress. USDA showed a slight decrease in harvested area but an uptick in yields for an overall very small decrease in production of All Rice. Beginning stocks and ending stocks were also increased but demand was untouched. Long grain featured increased beginning stocks and decreased production for an increase in ending stocks to 21.4 million cwt from 20.3 million cwt last month.. Brazil prices are strong on ideas of short production and El Nino fears for production on the next crop. Harvest is active in most states and is 50% complete. Demand remains moderate to poor for US Rice and was moderate last week. El Nino is threatening production in Asia and Indian prices remain high and are going higher, Trends are turning down on the daily charts and are up on the weekly charts.
Chart Analysis: Trends are mixed to down. Support is at 1550, 1510, and 1465 November and resistance is at 1622, 1634, and 1646 November.

CORN AND OATS
General Comments: Corn was lower yesterday in response reports of an expanding harvest. Farmer selling was noted. USDA cut back on harvested area and yields for production at 15.800 billion bushels. Feed demand was cut to 5.950 billion bushels and total demand was cut to 16.180 billion bushels. Ending stocks were estimated at 1.567 billion bushels from 1.653 billion last month. There is still too much hot and dry weather in the western and southern Midwest but moderating conditions in Europe. Ukraine and Russia are back at war again and shipping is very limited in both countries. It should be cooler with drier weather in the Midwest this week. The crop conditions were steady last week and below aa year ago. Progress is about normal and the harvest is now 6% complete. Anecdotal report indicate that the harvest has started in the southern Midwest. Temperatures in the Midwest should be cooler this week amid wet weather. Oats were a little lower and USDA made no changes to supply or demand. The harvest is complete.
Chart Analysis: Trends in Corn are mixed . Support is at 521, 513, and 497 December, and resistance is at 554, 560, and 566 December. Trends in Oats are mixed. Support is at 394, 377, and 364 December, and resistance is at 414, 420, and 426 December.

SOYBEANS
General Comments: Soybeans and the products were lower on what was called profit taking. China is expected to buy more cargoes of US Soybeans before the US-China summit meetings in the coming weeks. USDA showed increased harvested area and yields for production increases to 4.535 billion bushels. Exports were higher and ending stocks were cut to 310 million bushels from 320 million last month. It is still mostly hot and dry in the southern and western Midwest. Leaves are dropping according to USDA this week and the harvest has started. Condition is below a year ago and unchanged from the previous week. Cooler temperatures and wet weather in northern areas are expected for the next week in the Midwest. Southern areas are hot and dry. There is some concern that El Nono could affect South American Soybeans production this year.
Analysis: Trends in Soybeans are mixed. Support is at 1290, 1256, and 1244 November, and resistance is at 1335, 1348, and 1360 September. Trends in Soybean Meal are mixed to up. Support is at 345.00, 341.00, and 336.00 October, and resistance is at 363.00, 366.00,and 373.00 October. Trends in Soybean Oil are mixed. Support is at 6780, 6630, and 6570 October, with resistance at 7170, 7280, and 7370 October.

PALM OIL AND CANOLA
General Comments: Palm Oil was lower today. Canola was lower yesterday.
Chart Analysis: Trends in Canola are mixed to up. Support is at 897.00, 793.00, and 780.00 November, with resistance at 844.00, 856.00, and 868.00 November. Trends in Palm Oil are mixed. Support is at 4850, 4800, and 4750 November, with resistance at 4960, 5030, and 5090 November.