Grains Report - Wednesday, Oct. 21

WHEAT
General Comments: Winter Wheat markets were higher again yesterday. It is a weather market and the planting weather is dry in many northern hemisphere areas. Western Europe is likely to get some good rains in the short term, but southern Russia could stay mostly dry. Dry conditions are forecast for eastern Ukraine this week. Kazakhstan has been dry. These areas are trying to plant the next Winter Wheat crop but the dry weather and the dry soils are keeping farmers out of the fields. Farmers are not really selling much of the current crop due to fears about production of the next crop. Less production is likely in Argentina due to drought, but the rains are coming. Western Australia has also been very dry. The western Great Plains remains mostly dry. The Midwest has had some rains and the forecasts call for good rains this week in SRW areas.
Overnight News: The southern Great Plains should get isolated to scattered showers. Temperatures should be below normal. Northern areas should see scattered showers. Temperatures will be below normal. The Canadian Prairies should see light snow. Temperatures should be below normal.
Chart Analysis: Trends in Chicago are up with objectives of 660 December. Support is at 617, 604, and 600 December, with resistance at 638, 644, and 650 December. Trends in Kansas City are up with objectives of 600 December. Support is at 553, 540, and 527 December, with resistance at 573, 576, and 579 December. Trends in Minneapolis are up with no objectives. Support is at 560, 555, and 548 December, and resistance is at 578, 581, and 584 December.

RICE
General Comments: Rice was lower and made new lows for the move as the US harvest is in its final stages. The harvest has been active in northern states with good field yields reported. Southern Louisiana and Texas are done with the first crop harvest and are waiting for the second crop to mature. Producers had to endure Hurricane Delta in Louisiana, but the Rice apparently made it through with only minimal losses if any losses were seen at all. Quality is said to be very good, especially in Arkansas.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be below normal.
Chart Analysis: Trends are down with objectives of 1185 November. Support is at 1218, 1210, and 1204 November, with resistance at 1236, 1241, and 1255 November.

CORN AND OATS
General Comments Corn moved higher. Farmers in the US are holding Corn for later sale despite firm basis and tight carry spreads. Producers are unhappy with the price and the Soybeans are paying much better, so farmers are selling the Soybeans and holding the Corn. Harvest reports from the country suggest that production of a good crop is likely. Demand is holding strong for exports, but domestic demand was cut back from previous estimates in the latest WASDE report. The demand has come primarily from China as the state companies bought for the reserve, and the buying could continue. The harvest has been active in the Midwest with very good harvest conditions.
Overnight News:
Chart Analysis: Trends in Corn are up with objectives of 412, 414, and 427 December. Support is at 403, 399, and 393 December, and resistance is at 412, 413, and 416 December. Trends in Oats are mixed. Support is at 295, 291, and 287 December, and resistance is at 300, 303, and 306 December.

SOYBEANS AND PRODUCTS
General Comments: Soybeans and Soybean Oil closed higher and Soybean Meal was lower. Traders are expecting more demand in the short term. The demand has been primarily from China but other countries are buying in the US as well. Reports indicated that the producer is selling Soybeans right off the combine or is delivering against previous contracts. Chinese buying for the reserve is almost finished. Ideas are that individual crushers are still with positions to buy. The trade generally expects China to shift its buying back to Brazil in the near future, but Brazil has been hot and dry and parts of Argentina have also been dry and some of the early planting has been delayed. That might keep the Chinese buying in the US for a little longer. Brazil is starting to get rains, so all of the projected Soybeans area will get planted and a big crop from Brazil is still expected. The US harvest is continuing and starting to end. Yield reports have been disappointing in some areas of the Midwest.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1046, 1038, and 1032 November, and resistance is at 1066, 1071, and 1080 November. Trends in Soybean Meal are mixed to up with objectives of 377.00 December. Support is at 369.00, 360.00, and 357.00 December, and resistance is at 378.00, 381.00, and 384.00 December. Trends in Soybean Oil are mixed. Support is at 3230, 3210, and 3150 December, with resistance at 3370, 3400, and 3420 December.

CANOLA AND PALM OIL
General Comments: Palm Oil closed higher on improved October demand for exports and price action overseas. The export pace as reported by private surveyors increased from September. It is seasonally a time for trees to produce more due to more regular rains. Getting workers to do the harvest remains hard and the lack of labor has been a big problem. At least some of the plantation owners have asked for more migrant workers to cover the lack of workers that can be sourced locally. Canola was higher along with the rallies in Palm Oil and Soybean Oil. Canola farmers are selling due to harvest pressure, but industry and speculators are buying. The Canadian Dollar is higher but Canola is still considered relatively cheap in the world market.
Overnight News:
Chart Analysis: Trends in Canola are up with objectives of 557.00 November. Support is at 529.00, 527.00, and 521.00 November, with resistance at 551.00, 554.00, and 557.00 November. Trends in Palm Oil are mixed to down with no objectives. Support is at 2760, 2740, and 2710 January, with resistance at 2910, 2980, and 3070 January.