Grains Report - Wednesday, August 26

WHEAT

General Comments: Winter Wheat markets were higher on strength in Corn and Soybeans. No Chinese demand has been reported by USDA in the past week and this has been a negative development for futures prices. Ideas of new Chinese demand had supported the market last week. Europe remains high priced due to drought in France, but improving yield reports in Russia have hurt prices in the Black Sea. 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. Russian Winter Wheat yields have improved over time as harvesters move into areas that had better growing conditions, but Spring Wheat yields are expected to be variable due to declining crop conditions in those growing areas. Australia remains in good condition. About half of the Argentine Wheat belt is still too dry.

Overnight News: The southern Great Plains should get scattered showers. Temperatures should be above normal. Northern areas should see isolated showers. Temperatures will average near to above normal. The Canadian Prairies should see isolated showers. Temperatures should average near to above normal.

Chart Analysis: Trends in Chicago are mixed to up with objectives of 565 September. Support is at 517, 514, and 507 September, with resistance at 534, 540, and 544 September. Trends in Kansas City are mixed. Support is at 433, 426, and 420 September, with resistance at 452, 458, and 464 September. Trends in Minneapolis are mixed. Support is at 500, 495, and 492 September, and resistance is at 520, 528, and 543 September.

RICE

General Comments: Rice was lower. The hurricanes are heading to Louisiana but most areas in Texas and Louisiana have been harvested. Marco became much weaker as it approached Louisiana and has not been a threat. The market is not worried for now. New crop prospects appear solid for increased production in the coming year. The area is larger and the growing conditions are mostly good. The crops are called in good condition in Mississippi, Arkansas, and Missouri and harvesting is about to start in thosr states. Texas and southern Louisiana field yield reports are strong. Quality is called average to above average. Export demand for the new crop Rice has been slow to develop as buyers wait for lower prices. Domestic demand has also been less. It looks like many buyers bought and hoarded Rice during the first pandemic scare and are now full of supplies.

Overnight News: The Delta should get big rains from Laura and Marco. Temperatures should be near to above normal.

Chart Analysis: Trends are mixed. Support is at 1204, 1190, and 1180 September, with resistance at 1232, 1245, and 1248 September.

CORN AND OATS

General Comments: Corn was higher on forecasts for hot and dry weather for this week in the Midwest. The Pro Farmer tour had found less ears out in the country than had been expected so the yields were lower in part for that reason. The crops really need some water and there is not much if any water coming until this weekend at the earliest. The corn is firing due to the conditions and some of the corn is shutting down prematurely. Wetter and cooler weather is expected this weekend but many observers say that the rains will be too late to help some of the crops.

Overnight News: China bought 400,000 tons of US Soybeans.

Chart Analysis: Trends in Corn are up with objectives of 343 and 354 September. Support is at 334 332, and 326 September, and resistance is at 351, 357, and 361 September. Trends in Oats are mixed to up with objectives of 287 and 305 September. Support is at 270, 268, and 264 September, and resistance is at 280, 281, and 290 September.

SOYBEANS AND PRODUCTS

General Comments: Soybeans were higher on the bad Midwest weather and on new Chinese demand. China has been a very strong buyer of US new crop Soybeans and the US now has record sales on the books. 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 bad for Soybeans with hot and dry conditions this week. There are reports of small beans in pods and some pods being aborted already. The hot and dry conditions this week will only add to stress in Soybeans. Cooler and wetter weather is forecast for this weekend.

Overnight News: SGS said that Malaysian Palm Oil exports are now 1.148 million gtons, from 1.385 million last month.

Chart Analysis: Trends in Soybeans are mixed. Support is at 908, 897, and 888 September, and resistance is at 9`15, 918, and 920 September. Trends in Soybean Meal are mixed to down with objectives of 289.00 and 284.00 September. Support is at 293.00, 287.00, and 285.00 September, and resistance is at 299.00, 301.00, and 302.00 September. Trends in Soybean Oil are up with objectives of 3270 and 3290 September. Support is at 3150, 3100, and 3050 September, with resistance at 31220, 3290, and 3320 September.

CANOLA AND PALM OIL

General Comments: Palm Oil was higher along with Chicago and Dalian Soybean Oil. Export demand for Malaysian Palm Oil is down about 16% this month. Canola closed higher on Chicago Soybean Oil price action. 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 to up with objectives of 495.00 and 498.00 November. Support is at 487.00, 483.00, and 481.00 November, with resistance at 497.00, 498.00, and 502.00 November. Trends in Palm Oil are mixed. Support is at 2570, 2530, and 2450 November, with resistance at 2700, 2760, and 2790 November.

Midwest Weather Forecast: Mostly dry in all areas today, then showers and storms mostly in the south and east over the weekend. Temperatures should average above normal this week and below normal this weekend.