Grains Report - Friday, May 22

WHEAT
General Comments: Wheat markets were higher in fund-related buying tied to the dry weather in Europe and Russia. Europe got some rains after a prolonged dry spell and Russia also got a little rain in northern and central areas. The rains in Russia are leaving southern areas dry. These areas have turned dry again. The US Midwest has also seen a lot of rain and a bumper SRW crop is expected. It has been hot and dry in central and southern areas of the Great Plains. However, there is rain in the forecast for later this week. The crop suffered Winterkill first and now is suffering under the hot and dry weather. It has been mostly dry but cold in the northern Great Plains and into the Canadian Prairies but the market is less concerned about production potential for Spring Wheat crops. Warmer and drier weather is expected this week. End users are uncovered and will need to buy at some point.
Overnight News: The southern Great Plains should get scattered showers. Temperatures should be near to above normal. Northern areas should see dry conditions this week and scattered showers this weekend. Temperatures will average above normal. The Canadian Prairies should see scattered showers. Temperatures should average below normal in the west and above normal in the east.
Chart Analysis: Trends in Chicago are mixed. Support is at 508, 501, and 496 July, with resistance at 528, 535, and 540 July. Trends in Kansas City are mixed. Support is at 449, 439, and 431 July, with resistance at 461, 468, and 473 July. Trends in Minneapolis are mixed. Support is at 510, 504, and 502 July, and resistance is at 526, 528, and 534 July.

RICE
General Comments: Rice was a little lower in quiet trading. There is not much going on in this market these days. The domestic situation remains tight for the old crop month of July. New crop months have reflected ideas of greatly increased planted area from producers. Some producers are selling the next crop and some hedge selling has been seen in new crop months in futures. Planting should be active again this week in Arkansas and Mississippi. Demand for US Rice remains generally positive and the export sales pace, in general, has been very good. However, they were a marketing-year low last week at about 28,000 tons. The weekly crop progress reports showed that southern Rice is developing well.
Overnight News: The Delta should get scattered showers Temperatures should be generally below normal.
Chart Analysis: Trends are mixed to up with no objectives. Support is at 1591, 1581, and 1562 July, with resistance at 1637, 1656, and 1668 July.

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