Grains Report - Friday, Aug. 27

WHEAT
General Comments: Wheat was higher on stronger European futures and despite ideas of increasing demand potential as world prices rallied on short supplies, especially in Russia. The weekly export sales was poor but did not matter much to the traders. The demand has not been seen here, so the Winter Wheat markets have not been able to do more than hold in a range Dry weather in southern Russia as well as the northern US Great Plains and Canadian Prairies remains a supportive feature in the market although the US and Canada are seeing some showers this week. Crop size estimates in Russia have been reduced and domestic Russian prices are above world prices. 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 but are not expected to help much. The weather in China and Europe is wet and there is potential for reduced quality in Europe. Europe is expecting top yields in some areas but less yield in others and parts of eastern Europe and northern Russia are expecting strong yields.
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 mixed. Support is at 704, 695, and 690 September, with resistance at 732, 735, and 756 September. Trends in Kansas City are mixed. Support is at 695, 688, and 678 September, with resistance at 735, 756, and 764 September. Trends in Minneapolis are mixed. Support is at 905, 891, and 888 September, and resistance is at 936, 954, and 960 September.

Image by Sasin Tipchai from Pixabay

RICE
General Comments: Rice closed a little lower with spreads between September and November still the most active trade. Harvesting continues in Louisiana and Texas. A delayed harvest is expected in Mississippi and Arkansas. The harvest is now expanding through southern growing areas. Initial yield reports and quality reports have been acceptable to many in Texas and are called good in Louisiana. Smut has been reported in Texas but the smut is coming off the grain in the cleaning process. The smut problem appears to be worse around Houston. The harvest pace is expected to be slow due to ongoing showers in both regions and farther into the north. Ideas of average yields are also heard in Arkansas and Mississippi. Growing conditions have been mixed at best with many areas getting too much rain. Chart trends are sideways.
Overnight News: The Delta should get isolated showers. Temperatures should be near to below normal.
Chart Analysis: Trends are mixed. Support is at 1318, 1308, and 1294 September, with resistance at 1344, 1355, and 1358 September

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