Image Source: Unsplash

WHEAT
General Comments: Wheat was higher yesterday on reports of frosts and freezing temperatures in Russian growing areas Reports indicate that Russia will still have plenty of Wheat for export in the coming year so much of the rally was given back later in the session Traders were preparing for the USDA reports coming later this week.. The weather is still a key, with extreme dryness reported in Russia and parts of the US and too wet conditions reported in Europe. The weekly export sales report showed poor sales once again and sales are not likely to improve anytime soon with the Dollar strength. Big world supplies and low world prices are still around. Export sales remain weak on competition from Russia, Ukraine, and the EU as those countries look to export a lot of Wheat in the coming period. Black Sea offers are still plentiful, but Russia has been bombing Ukraine again and shipments might be hurt from that origin.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be above normal. Northern areas should see mostly dry conditions. Temperatures will average above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 610, 596, and 593 July, with resistance at 661, 667, and 673 July. Trends in Kansas City are up with no objectives. Support is at 664, 637, and 630 July, with resistance at 682, 688, and 604 July. Trends in Minneapolis are up with objectives of 747 July. Support is at 697, 686, and 671 July, and resistance is at 733, 738, and 746 July.

RICE
General Comments: Rice closed higher yesterday. The futures market overall remained in a short term trading range. Support comes from adverse weather in South American growing areas while new selling is noted from the potential for a big crop in the US. The big US crops are now in doubt from reports of extreme rains in southern growing areas and especially near Houston. Supply tightness is expected to give way to increased production this year and greatly increased supplies this Fall. These ideas are reflected in the prices seen in the cold crop and the new crop.
Overnight News:
Chart Analysis: Trends are down with no objectives. Support is at 1827, 1785, and 1750 July and resistance is at 1915, 1955, and 1972 July.

CORN AND OATS
General Comments: Corn closed a littler lower and Oats closed higher yesterday on traders prepared for the next round of USDA reports to ne released later today. The Argentine crop has been hit by stunting disease that robs yields and the Brazil Winter crop is suffering from hot and dry weather. Demand has been the driving force behind the rally but now South American weather is the driving force. Increased demand was noted in most domestic categories along with rising basis levels, and export demand has been strong. Ethanol demand has turned less due to weaker petroleum prices seen lately. There is very dry weather for the Winter crops in central and northern Brazil
Overnight News:
Chart Analysis: Trends in Corn are up with objectives of 470 July. Support is at 460, 454, and 450 July, and resistance is at 470, 477, and 483 July. Trends in Oats are up with no objectives. Support is at 383, 378, and 362 July, and resistance is at 402, 408, and 414 July.

SOYBEANS
General Comments: Soybeans and the products closed mostly lower yesterday as traders prepared for the USDA reports that will be released later today. Support for Soybeans came from reports of excessive rains falling on unharvested crops in southern Brazil. Rains up to 400 mm were reported by newswires. Ideas of less bio fuels demand have hurt Soybean Oil prices. Some selling from Brazil and Argentina was noted on the early rally attempt last week. Reports of great export demand in Brazil provide some support. Reports indicate that China has been a very active buyer of Brazil Soybeans this season. Ideas that South American production is taking demand from the US have pressured futures lower. Domestic demand has been strong in the US but has suffered as crushers were crushing for oil. Oil demand has suffered as cheaper alternatives for feedstocks hit the bio fuels market. Funds remain short in the market.
Overnight News:
Chart Analysis: Trends in Soybeans are up with objectives of 1248 July. Support is at 1401, 1221, and 1216 July, and resistance is at 1260, 1269, and 1280 July. Trends in Soybean Meal are up with no objectives. Support is at 375.00, 370.00, and 361.00 July, and resistance is at 390.00, 393.00, and 397.00 July. Trends in Soybean Oil are mixed. Support is at 4260, 4200, and 4140 July, with resistance at 4530, 4610, and 4690 July.

CANOLA AND PALM OIL
General Comments: Palm Oil was lower on weaker bio fuels demand but found some support late in the week on reports of strong demand from India and reports of reduced production. Trends are down on the daily and weekly charts. Canola was higher despite weaker prices in world vegetable oils markets. Farmers concentrate on fieldwork and not selling.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 660.00, 639.00, and 616.00 July, with resistance at 672.00, 679.00, and 589.00 July. Trends in Palm Oil are mixed to down with objectives of 3790 and 3650 July. Support is at 3780, 3740, and 3700 July, with resistance at 3930, 4020, and 4040 July.

More By This Author:

Softs Report - Friday, May 10
Softs Report - Thursday, May 9
Grains Report - Tuesday, May 7