WHEAT
General Comments: Wheat was higher as USDA cut its production estimates more than expected by the trade Chart trends are now up in all three markets.. Dry weather in southern Russia as well as the northern US Great Plains and Canadian Prairies remains a supportive feature in the market. Trends in Winter Wheat markets are still up. Crop size estimates in Russia have been reduced and are now well below the latest USDA estimates. The Russian weather has been good for production in northern and western areas but is still trending dry in southern areas and into Kazakhstan. Some showers are no in the forecast for the drier areas over the next week, then showers and cooler temperatures are in the forecast. The weather in China and Europe is wet and there is potential for reduced quality in Europe. Europe is expecting top yields as are parts of eastern Europe and northern Russia. It has been very cold in South America and the winter crops are in trouble in Brazil and Paraguay. US White Winter Wheat production is also being hurt by hot and dry weather, but a cold front could bring some relief in several days.
Overnight News: The southern Great Plains should get isolated showers. Temperatures should be near to above
normal. Northern areas should see mostly dry conditions. Temperatures will be near normal. The Canadian Prairies should see isolated showers or dry conditions. Temperatures should average near to below normal.
Chart Analysis: Trends in Chicago are up with objectives of 762, 792, and 815 September. Support is at 739, 730, and 724 September, with resistance at 762, 767, and 771 September. Trends in Kansas City are up with objectives of 749 and 780 September. Support is at 718, 6702, and 688 September, with resistance at 747, 751, and 758 September. Trends in Minneapolis are up with objectives of 957 and 995 September. Support is at 920, 905, and 8591 September, and resistance is at 945, 954, and 960 September.

Image by tk tan from Pixabay

RICE
General Comments: Rice closed higher in reaction to the USDA reports. USDA cut its production estimate and ending stocks estimates in its reports yesterday. The harvest is now expanding through southern growing areas and as traders got ready for the USDA reports that will be released later this morning. Initial yield reports and quality reports have not been real good. Smut has been reported in Texas but the smut is coming off the grain in the cleaning process. The trends are mixed in the market. Traders expect average to weak production. The harvest got started in Texas and southern Louisiana but has been slow in these areas due to rain showers in the region. Both areas have been wet and cloudy this season and average at best yields are expected. Initial reports from Texas suggest that average yields are very optimistic. The harvest pace is expected to be slow due to ongoing showers in both regions. Ideas of average yields at best are also heard in Arkansas and Mississippi. The market expects smaller production this year due to reduced planted area and some weather extremes seen through the growing season to date. Growing conditions have been mixed at best with many areas getting too much rain.
Overnight News: The Delta should get isolated showers. Temperatures should be near to below normal.
Chart Analysis: Trends are mixed to up with objectives of 1362, 1387, and 1390 September. Support is at 1337, 1310, and 1308 September, with resistance at 1355, 1358, and 1360 September.

CORN AND OATS
General Comments: Corn was higher yesterday and trends turned up on the charts in reaction to the USDA reports. USDA reduced yields and production estimates much more than the trade had expected. Production in Brazil was also cut significantly. Demand has improved in the past week, and the weather remains a feature of the trade. Some forecasts call for improved weather, especially in the eastern belt. The growing conditions in the US are highly variable and not likely to produce trend line or record yields. It is still too dry in many areas of the west and drier weather is expected in the east. It should stay hot in the west and cool in the east. Ideas are that Brazil Corn production could be less than 85 million tons so reduced production estimates are expected in coming reports. Oats were higher as well. The uncertain weather in the northern Great Plains and Canadian Prairies remains the best support for the market. Canadian Oats areas and those in the northern Great Plains remain too hot and dry. Some rain is now in the forecast but is too little and too late to materially help crops.
Overnight News:
Chart Analysis: Trends in Corn are up with objectives of 597, 607, and 615 September. Support is at 563, 561, and 550 September, and resistance is at 579, 589, and 598 September. Trends in Oats are mixed. Support is at 450, 440, and 436 September, and resistance is at 475, 482, and 488 September.

SOYBEANS
General Comments: Soybeans and products were mixed yesterday in response to the USDA reports that showed production in line with trade estimates. Chart trends remain sideways in all three markets. US weather is still a feature in the market as it remains hot in the west and is dry in just about all areas now. Eastern Midwest areas should be cooler. Soybeans conditions in central production area started the year too wet and have suffered. Minnesota and northern Iowa and the Dakotas have been very hot and dry but eastern Nebraska got very beneficial rain over the weekend.
Overnight News: China bought 126,000 tons of US Soybeans and unknown destinations bought 326,200 tons of US Soybeans.
Chart Analysis: Trends in Soybeans are mixed. Support is at 1330, 1308, and 1296 September, and resistance is at 1358, 1366, and 1374 September. Trends in Soybean Meal are mixed. Support is at 352.00, 347.00, and 342.00 September, and resistance is at 360.00, 365.00, and 371.00 September. Trends in Soybean Oil mixed. Support is at 6100, 6010, and 5940 September, with resistance at 6330, 6390, and 6520 September.

CANOLA AND PALM OIL
General Comments: Palm Oil was lower today on some long liquidation after trading sharply higher the previous day on supply concerns due to the release of the MPOB report. There are just not enough workers in the fields due to Coronavirus restrictions. Production has also been down to more than offset the export losses so prices have trended higher. Canola closed higher yesterday as traders reacted to the USDA reports. Production ideas are down due to the extreme weather seen in these areas. It remains generally dry and warm in the Prairies. Some showers in the forecast for this week have no chance to be very beneficial as the Prairies crops are in big trouble now due to previous hot and dry weather and the rains are coming too late.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 867.00, 859.00, and 823.00 November, with resistance at 902.00, 9306.00, and 932.00 November. Trends in Palm Oil are up with objectives of 4650 October. Support is at 4330, 4280, and 4170 October, with resistance at 4600, 4660, and 4720 October.