Grains Report - Tuesday, Nov. 9

WHEAT
General Comments: Wheat closed mostly a little higher yesterday s the world market has held strong and as no real bearish news is expected today from the WASDE and USDA production reports. Trends are still generally sideways for the short term in all three markets. Ideas that the US will have good demand for Wheat as the rest of the northern hemisphere is short production this year. Offer volumes are down from both Russia and Europe. Dry weather in southern Russia as well as the northern US Great Plains and Canadian Prairies remains a supportive feature in the market although the weather has become old news. The Russian weather has been good for production in northern and western areas and has recently improved in southern areas and into Kazakhstan in time for the next crop. Siberian Spring Wheat conditions have been very good. Europe is expecting top yields in some areas but less yield in others and parts of eastern Europe and northern Russia are expecting strong yields. European quality is a problem due to too much rain in some areas and not enough in others.
Overnight News: The southern Great Plains should get some showers over the middle of the week. Temperatures should average near to above normal. Northern areas should see some showers over the middle of the week. Temperatures will average near to above normal. The Canadian Prairies should see mostly dry conditions but showers are possible over the middle of the week. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 763, 745, and 744 December, with resistance at 780, 790, and 798 December. Trends in Kansas City are mixed. Support is at 772, 768, and 748 December, with resistance at 796, 804, and 814 December. Trends in Minneapolis are mixed. Support is at 1005, 984, and 980 December, and resistance is at 1034, 1060, and 1086 December.

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RICE
General Comments: Rice was higher again yesterday on follow-through buying as the recent demand woes are considered to be factored into the price for now. Weekly chart trends are sideways but imply futures could test resistance at the 1400 area basis the nearest futures contract in the near term. Ideas are that demand is not yet strong enough to take up the supply available to the market. The crop has been largely harvested in all states. Yield reports and quality reports have been acceptable to many in Texas and are called good in Louisiana. The reports have been good in both Arkansas and Mississippi. Milling yields have been generally low in both states.
Overnight News: The Delta should get showers late this week. Temperatures should be near to above normal.
Chart Analysis: Trends are mixed. Support is at 1350, 1331, and 1301 January, and resistance is at 1368, 1372, and 1378 January.

CORN AND OATS
General Comments: Corn and Oats both closed lower in anticipation of the USDA reports that will be released later today. There are fears of a bearish report as production is expected to increase a little bit and demand could get cut. But demand for export and for ethanol consumption has been great and no cuts are needed. Corn has relatively tight supplies as farmers are harvesting and not selling. Demand will be an increasing feature in the trade moving forward as the harvest moves to completion sometime this month. Initial yield reports have been mixed but good. Most of the elevators along the Mississippi are exporting again which is good news for nearby demand. There are a lot of ideas that production and planted and harvested area will be significantly less next year due to the lack of fertilizers available and the cost of production.
Overnight News:
Chart Analysis: Trends in Corn are down with objectives of 544 December. Support is at 548, 540, and 533 December, and resistance is at 569, 573, and 582 December. Trends in Oats are up mixed to down with objectives of 686, 627, and 486 December. Support is at 708, 686, and 649 December, and resistance is at 737, 775, and 780 December.

SOYBEANS
General Comments: Soybeans and the products closed lower again yesterday on what appeared to be widespread speculative selling as wire reports indicated that the Brazil Soybean basis was now showing overall prices less than US values to places like China. Th trade anticipates increased production and reduced export demand in the WASDE and USDA production reports that will be released later today. Soybeans trends are down on the daily charts. Harvest has moved well past the halfway point for Soybeans and a harvest low might be seen during the second half of the harvest. Reports indicate that farmers are limited sellers at best. Gulf port elevators are coming on line and export sales and exports are increasing. Planting and initial crop development is going very well in Brazil. It has been dry in Argentina but rain has been falling this week and conditions for planting and initial growth are improving.
Overnight News:
Chart Analysis: Trends in Soybeans are down with objectives of 1177 January. Support is at 1180, 1168, and 1156 January, and resistance is at 1227, 1243, and 1261 January. Trends in Soybean Meal are mixed. Support is at 328.00, 323.00, and 320.00 December and resistance is at 341.00 344.00, and 347.00 December. Trends in Soybean Oil are down with objectives of 5680 December. Support is at 5700, 5650, and 5420 December, with resistance at 5850, 6050, and 6140 December.

CANOLA AND PALM OIL
General Comments: Palm Oil was lower again today as Soybean Oil moved lower and caused demand concerns for Palm Oil. Futures are still caught in a trading range. Support still comes from ideas that supply and demand are in balance or supplies are short. The weekly chart trends are up. There are ideas of tight supplies due to labor problems. There are just not enough workers in the fields due to Coronavirus restrictions. Production has also been down to more than offset the export losses so prices have trended higher. Canola closed a little higher and could have topped out for now as the harvest is starting to wind down. Farmers are bullish and reluctant to sell because of the sharp reduction in Canola production in Canada this year. The weekly chart trends are up.
Overnight News:
Chart Analysis: Trends in Canola are mixed Support is at 961.00, 949.00, and 938.00 January, with resistance at 982.00, 984.00, and 993.00 January. Trends in Palm Oil are mixed. Support is at 4760, 4740, and 4630 January, with resistance at 4970, 5080, and 5220 January.