Grains Report - Wednesday, Aug. 5

WHEAT
General Comments: Winter Wheat markets were lower. News that Russian yields were much improved from early in the harvest pushed Wheat lower yesterday. Spring Wheat was developing under good growing conditions. 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 in most areas. 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 down with objectives of 491 and 411 September. Support is at 494, 488, and 484 September, with resistance at 517, 519, and 529 September. Trends in Kansas City are down with objectives of 415 and 411 September. Support is at 418, 412, and 406 September, with resistance at 432, 438, and 447 September. Trends in Minneapolis are down with objectives of 494, 478, and 468 September. Support is at 500, 498, and 492 September, and resistance is at 506, 512, and 520 September.

RICE
General Comments: Rice was slightly lower after spending much of the trading session with higher prices. It was a quiet day. The harvest is active near the Gulf Coast, but rains are being reported to interrupt progress. 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 that got planted are in very good condition in the south and near the Gulf Coast and are called in good condition in Mississippi, Arkansas, and Missouri. Texas and southern Louisiana field yield reports are strong.
Overnight News: The Delta should get scattered showers. Temperatures should be near to below normal.
Chart Analysis: Trends are mixed. Support is at 1148, 1135, and 1120 September, with resistance at 1170, 1176, and 1183 September.

CORN AND OATS
General Comments: Corn was lower and fell to new contract lows. Ideas of huge yields from the US crop this year have futures under pressure. Rains fell in many of the drier areas of the Midwest again last week and greatly benefitted the crops. It has turned cooler and is still wet and is considered good for kernel fill. About 15% of the Midwest is still too dry. Trends are down in Corn. 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.
Overnight News:
Chart Analysis: Trends in Corn are down with objectives of 299 September. Support is at 307, 302, and 299 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 270, 267, and 265 September, and resistance is at 278, 280, and 284 September.

SOYBEANS AND PRODUCTS
General Comments: Soybeans were lower on great growing conditions for the US crop and no new demand reports. The market keeps worrying about new sales to China as tensions between the US and China grow. 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. China has remained a very active buyer in South America even as it has increased Soybeans buying here in the US, so the overall amount taken from the US might not match the hopes of the trade. 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. About 15% of the Midwest is still too dry.
Overnight News: China bought 192,000 tons of US Soybeans
Chart Analysis: Trends in Soybeans are mixed to down with objectives of 866 August. Support is at 881, 871, and 867 August, and resistance is at 903, 911, and 917 August. Trends in Soybean Meal are down with objectives of 278.00 and 272.00 August. Support is at 282.00, 281.00, and 279.00 August, and resistance is at 286.00, 289.00, and 293.00 August. Trends in Soybean Oil are up with objectives of 3300 August. Support is at 3090, 3040, and 3020 August, with resistance at 3190, 3210, and 3230 August.

CANOLA AND PALM OIL
General Comments: Palm Oil closed lower last week on profit taking after news of renewed demand interest from India and China and on reports of less production from Malaysia and Indonesia. It was higher on Monday on Chicago price action and strong export data for July released by the private sources. 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 was mixed. 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 up with no objectives. Support is at 488.00, 485.00, and 482.00 November, with resistance at 494.00, 496.00, and 499.00 November. Trends in Palm Oil are mixed to up with objectives of 2850, 2910, and 3140 October. Support is at 2720, 2690, and 2640 October, with resistance at 2810, 2830, and 2840 October.