Grains Report - Wednesday, July 29

WHEAT
General Comments: Winter Wheat markets were lower on rains in the forecast for Russian Spring Wheat areas and ideas of increasing production there. European futures were lower as well. Spring Wheat here is developing under good growing conditions but futures prices closed higher. Yield reports from the central and southern Great Plains have been variable, but generally a little better than expected. Soft Red Winter yields are expected to be high. The Winter Wheat markets are in trading ranges. Spring Wheat markets show mixed trends as good conditions are also reported in much of Canada. It remains dry in the western sections of the Great Plains but this will aid harvest progress now. 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. 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. Egypt bought 470,000 tons of Russian and Ukrainian Wheat.
Chart Analysis: Trends in Chicago are mixed to down with objectives of 496 and 411 September. Support is at 517, 494, and 489 September, with resistance at 530, 540, and 544 September. Trends in Kansas City are mixed to down with objectives of 427, 416, and 399 September. Support is at 431, 426, and 418 September, with resistance at 441, 455, and 464 September. Trends in Minneapolis are mixed to down with objectives of 493, 478, and 468 September. Support is at 500, 498, and 492 September, and resistance is at 510, 520, and 528 September.

RICE
General Comments Rice was lower as the hurricane passed to the south of the Texas growing areas and harvest has started near the Gulf Coast. 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 now in Mississippi, Arkansas, and Missouri. Texas and southern Louisiana field yield reports are strong.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be near to above normal.
Chart Analysis: Trends are down with objectives of 1111 September. Support is at 1120, 1116, and 1100 September, with resistance at 1147, 1170, and 1176 September.

CORN AND OATS
General Comments Corn was lower on better growing conditions and limited demand. It should turn cooler and wetter for parts of this week. Eastern areas are likely to see the rains while the west misses out. Trends are turning down in Corn. There have been problems with demand. Meats processors are back and are close to capacity. Meats wholesale and retail prices are stable or falling. Recent reverses by some states on opening orders are hurting demand ideas for ethanol. US prices are still high in the world market so export sales are expected to be less.
Overnight News:
Chart Analysis: Trends in Corn are mixed to down with objectives of 314, 311, and 299 September. Support is at 322, 316, and 307 September, and resistance is at 325, 330, and 336 September. Trends in Oats are mixed to up with objectives of 284, 304, and 3211 September. Support is at 284, 281, and 276 September, and resistance is at 288, 290, and 298 September.

SOYBEANS AND PRODUCTS
General Comments: Soybeans were lower on no new reports of Chinese demand and better than expected crop condition ratings from USDA. The ratings imply that yields for Corn and Soybeans will be very high. 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 have been creeping 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 calls for drier weather to the west and showers to the east.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed to down with objectives of 887, 884, and 866 August. Support is at 890, 883, and 882 August, and resistance is at 9-02, 911, and 917 August. Trends in Soybean Meal are mixed to down with objectives of 284.00, 278.00, and 272.00 August. Support is at 287.00, 282.00, and 281.00 August, and resistance is at 292.00, 296.00, and 298.00 August. Trends in Soybean Oil are mixed to down with objectives of 2710 and 2640 August. Support is at 2890, 2860, and 2780 August, with resistance at 2960, 3020, and 3050 August.

CANOLA AND PALM OIL
General Comments: Palm Oil closed higher on reports of less production from Malaysia and Indonesia and ideas of increasing demand. 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 lower with Chicago. Canola fell initially on improved growing conditions in the Canadian Prairies, but recovered on speculative buying. 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 491.00 November. Support is at 485.00, 482.00, and 480.00 November, with resistance at 490.00, 493.00, and 496.00 November. Trends in Palm Oil are mixed to down with objectives of 2430 and 1960 October. Support is at 2490, 2420, and 2360 October, with resistance at 2620, 2670, and 2710 October.