Grains Report - Wednesday, Aug. 12

WHEAT
General Comments: Winter Wheat markets were higher on speculative short-covering tied to ideas that Wheat markets were oversold. Russian Wheat is now hitting the domestic market and prices are lower. Production estimates have improved as the harvest has moved into areas that enjoyed better weather. Spring Wheat was developing under good growing conditions in both the US and Canada. 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. The Winter Wheat markets are in downtrends on the weekly charts. 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 in the east. The west is too dry. About half of the Argentine Wheat belt is too dry.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be above normal. Northern areas should see scattered showers. Temperatures will average near to above normal. The Canadian Prairies should see scattered showers. Temperatures should average near to above normal.
Chart Analysis: Trends in Chicago are mixed to down with objectives of 411 September. Support is at 489, 482, and 471 September, with resistance at 500, 508, and 515 September. Trends in Kansas City are mixed to down with no objectives. Support is at 410, 404, and 400 September, with resistance at 424, 431, and 438 September. Trends in Minneapolis are mixed to down with objectives of 478 and 460 September. Support is at 491, 486, and 480 September, and resistance is at 500, 506, and 512 September.

RICE
General Comments: Rice was a little lower in front of the USDA reports release. New crop prospects appear solid for increased production in the coming year. The area is larger and the growing conditions are mostly good. The combination of good export buying in general and the buying inside the US due to the Coronavirus has made the market short old crop Rice. There are ideas that the mills are well covered into new crop, but little Rice is available from producers. The crops are called in good condition in Mississippi, Arkansas, and Missouri. Texas and southern Louisiana field yield reports are strong. Export demand for the new crop Rice has been slow to develop as buyers wait for lower prices.
Overnight News: The Delta should get scattered showers. Temperatures should be near to below normal.
Chart Analysis: Trends are mixed. Support is at 1146, 1135, and 1120 September, with resistance at 1178, 1183, and 1191 September.

CORN AND OATS
General Comments: Corn was a little higher in light volume trading before the release of the USDA reports. Trends are sideways. Meats processors are back and are operating at close to capacity. Meats wholesale and retail prices are stable. Recent reverses by some states on opening orders are hurting demand ideas for ethanol, but ethanol demand has been increasing. US prices are high in the world market so export sales of Corn are expected to be less. A tour of Central Illinois showed less ear populations than expected. It is a very good crop with good color, but the smaller than expected ear populations will make it hard for the production to be a record as is anticipated by many traders.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 311, 307, and 302 September, and resistance is at 315, 318, and 322 September. Trends in Oats are down with objectives of 262 and 249 September. Support is at 267, 265, and 262 September, and resistance is at 273, 277, and 280 September.

SOYBEANS AND PRODUCTS
General Comments: Soybeans were a little higher on better Chinese demand and before the release of the USDA reports. China has become a much more active buyer of Soybeans here in the US and has promised to ramp up purchases in order to comply with commitments it made under the Phase One trade deal. Its commitments have been thrown into doubt by the continued political tensions between the two countries. Brazil prices are higher for the rest of the world as it starts to run out of Soybeans to export, so China and the rest of the world will look to the US for additional supplies. The US weather is considered good for growing Soybeans with cooler temperatures and beneficial rains. A tour of Central Illinois revealed good looking crops with good color, but the plants were short and might not produce enough pods to make some of the higher production expectations of the trade.
Overnight News: USDA said that 258,000 tons of US soybeans were sold to China and another 120,000 tons were sold to unknown destinations.
Chart Analysis: Trends in Soybeans are mixed to down with objectives of 857 September. Support is at 862, 861, and 853 September, and resistance is at 880, 884, and 889 September. Trends in Soybean Meal are mixed. Support is at 282.00, 279.00, and 276.00 September, and resistance is at 287.00, 289.00, and 291.00 September. Trends in Soybean Oil are mixed. Support is at 3050, 2980, and 2960 September, with resistance at 3100, 3160, and 3190 September.

CANOLA AND PALM OIL
General Comments: Palm Oil was higher this morning on weaker production ideas. Indonesia is forecasting less production this year. It produced 23.5 million tons in the first half of the year and this is down 8.9% from last year. Exports from Indonesia were also less than a year ago. Flooding and a lack of workers for the plantations have been the reasons to see less production. Higher world petroleum prices helped with ideas of increased bio fuels demand. 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 closed lower on good growing conditions in Canada and thee 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 warmer the past couple of weeks and most areas have seen rain.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 480.00, 471.00, and 470.00 November, with resistance at 489.00, 491.00, and 495.00 November. Trends in Palm Oil are mixed to down with objectives of 2590, 2480, and 2420 October. Support is at 2610, 2560, and 2490 October, with resistance at 2750, 2810, and 2850 October.