Softs Report - Wednesday, May 20

WHEAT
General Comments: Wheat closed higher in both markets again yesterday on follow through buying tied to reduced condition ratings for the Winter Wheat crops and as the White House announced over the weekend that China had agreed to purchase up to 17 billion dollars of US Ag goods in addition to Soybeans. China has not commented on the reports. The crop condition ratings are now the lowest in over 35 years. The higher close came despite selling tied to the US China summit late last week. President Trump announced he was pausing Operation Freedom to give the US and Iran a chance to work out o cease fire deal but rejected a de3al with Iran over the weekend. USDA showed deteriorating crop conditions yesterday. Conditions are too dry in much of the US Great Plains but remain wet in the US Midwest and in western Europe for best quality potential. The weather is now featuring precipitation is forecast for parts of the Midwest along with variable temperatures. It has been cold in Russia and frosts were reported. Some frosts are possible in Europe this week. The strait of Hormuz remains closed.
Chart Analysis: Trends in Chicago are mixed to up. Support is at 631, 628, and 606 July, with resistance at 684, 696, and 708 July. Trends in Kansas City are mixed to up. Support is at 678, 664, and 66 July, with resistance at 722, 756, and 762 July. Trends in Minneapolis are not available.

RICE
General Comments: Rice closed higher again yesterday and at the highest level since last July in reaction to strength in other CBT markets. Production was cut back mostly due to reduced planted and harvested area. Yields were actually held high. Domestic and export demand were also cut back but less than production and ending stocks were estimated at 42.3 million cwt for all Rice and 28.1 million cwt for Long Grain. Traders anticipate less production this year in the US and around the world due to low prices. USDA said that Rice planted area would be about 12% less in the coming year. Planting and emergence are ahead of average and condition is rated high. Demand remains moderate for US Rice but export demand has been less lately.
Chart Analysis: Trends are up. Support is at 1237, 1215, and 1178 July and resistance is at 1289, 1300, and 1312 July.

CORN AND OATS
General Comments: Corn was a little lower yesterday on strong planting and emergence progress in reports released by USDA and on further consideration of the White House announcement over the weekend that China had agreed to purchase up to 17 billion dollars of US Ag goods in addition to Soybeans. China has not commented on the reports. Planting has been very active in all of the Midwest and is now over half done. It looks drier this week, but not completely dry. Temperatures in the Midwest should be variable for the next week. Conditions are called good in Argentina and big production is expected there. Oats were higher and trends are up on the daily and weekly charts.
Chart Analysis: Trends in Corn are mixed to up. Support is at 452, 449, and 446 July, and resistance is at 487, 493, and 500 July. Trends in Oats are up. Support is at 367, 358, and 351 July, and resistance is at 386, 392, and 398 July

SOYBEANS
General Comments: Soybeans and the products were a little higher yesterday despite rapid planting progress shown by USDA as the White House announced over the weekend that China had agreed to purchase up to 17 billion dollars of US Ag goods in addition to Soybeans. China has not commented on the reports. Temperatures have been cool in the Midwest but planting is ahead of normal. Variable temperatures are expected for the next week. There is talk that more Soybeans could be planted if the weather does not improve for Corn planting soon. The big South American harvests are also weighing on prices. Big South American crops are being harvested, and ideas are that Chinese buying could be interrupted due to the Iran war and new import rules imposed by China. South American sources said that the Brazil crops are now harvested. The tariff wars between the US and other countries add to cost of US Soybeans.
Analysis: Trends in Soybeans are mixed. Support is at 1202, 1183, and 1172 July, and resistance is at 1235, 1251, and 1262 July. Trends in Soybean Meal are mixed. Support is at 328.00, 322.00, and 310.00 July, and resistance is at 342.00, 345.00,and 348.00 July. Trends in Soybean Oil are mixed to up. Support is at 7420, 7320, and 7140 July, with resistance at 7700, 7760, and 7820 July.

PALM OIL AND CANOLA
General Comments: Palm Oil was near unchanged today and Canola was higher yesterday.
Chart Analysis: Trends in Canola are mixed. Support is at 741.00, 729.00, and 709.00 July, with resistance at 758.00, 769.00, and 772.00 July. Trends in Palm Oil are mixed to up. Support is at 4460, 4350, and 4320 July, with resistance at 4540, 4720, and 4800 July