Grains Report - Friday, Dec. 11

WHEAT
General Comments: Wheat markets were higher on news reports that Russia was preparing to take steps to curb food inflation. One sure way to keep domestic food prices down is to keep Wheat prices down so the market expects an export tax or export quotas on Wheat soon. The monthly WASDE report had no surprises for the market. World prices have held steady with additional supplies available to the market as Russian prices remain elevated. Australian supplies have increased as its harvest is moving forward to keep world prices in check. US weather is still mixed with still dry conditions in the western Great Plains but good conditions in the Midwest. Parts of eastern Ukraine and southern Russia are getting some showers too but important growing areas remain dry. These have been late to help much with establishment but will help with soil moisture into the Spring. Western Australia conditions are good after some rains. The demand has held well and world prices remain relatively high. The market in Russia has remained high on limited supply as farmer hold the Wheat back due to the drought and also cold weather with little or no snow cover on the ground.
Overnight News: The southern Great Plains should get scattered showers starting Thursday. Temperatures should be above normal. Northern areas should see mostly dry conditions or isolated showers. Temperatures will be above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are mixed to up with objectives of 612 and 639 March. Support is at 584, 577, and 566 March, with resistance at 600, 608, and 612 March. Trends in Kansas City are mixed to up with objectives of 577 and 602 March. Support is at 553, 545, and 533 March, with resistance at 569, 575, and 586 March. Trends in Minneapolis are mixed to up with objectives of 570 and 596 March. Support is at 558, 553, and 548 March, and resistance is at 564, 570, and 577 March.

RICE
General Comments: Rice was a little higher in response to the WASDE reports. USDA trimmed short and medium grain supply and cut long grain exports. That left overall increased ending stocks and increased ending stocks for long grain. The market has entered into a very quiet period in both futures and cash markets. The cash market is slow and the lack of business is reflected in futures volumes traded. Reports indicate that domestic demand has been poor to average with better consumer demand more than offset by much less demand from schools and other institutions. The harvest is over with good field yields and generally good quality reported.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be near to above normal.
Chart Analysis: Trends are mixed. Support is at 1231, 1221, and 1220 January, with resistance at 1252, 126 January.

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