Grains Report - Friday, Oct. 9

WHEAT
General Comments: Winter and Spring Wheat markets were lower after making new highs for the move as speculative profit-taking hit the pit before the USDA reports tomorrow. The world weather situation is still important. Funds were on both sides of the market in all three markets. The overseas weather is presenting increasing problems for the next Winter Crop. Western Europe is likely to get some beneficial rains in the short term, but southern Russia could stay dry. Some showers are forecast for western parts of Ukraine this week, but eastern areas will be missed. Kazakhstan is also very dry. These areas are trying to plant the next Winter Wheat crop but the dry weather and the dry soils are keeping farmers out of the fields. Less production is likely in Argentina due to drought. About quarter of Argentine growing areas are affected. Western Australia has been dry. Conditions are improved in the US after some rains fell in the Great Plains but the western Great Plains remains mostly hot and dry. The Midwest has had good rains.
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 isolated showers. Temperatures should average near to above normal.
Chart Analysis: Trends in Chicago are mixed to up with objectives of 619 December. Support is at 587, 576, and 561 December, with resistance at 611, 614, and 617 December. Trends in Kansas City are up with no objectives. Support is at 536, 525, and 515 December, with resistance at 553, 555, and 558 December. Trends in Minneapolis are mixed to up with objectives of 562 and 579 December. Support is at 539, 531, and 523 December, and resistance is at 553, 556, and 567 December.

RICE
General Comments Rice was near unchanged in trading before the USDA reports tomorrow. US export demand has been strong so far this year after a slow start to the marketing year and was extremely strong yesterday. The rebound in demand supported futures, but the crop reports forced some speculators to the sidelines. The harvest has been active in most states with good field yields reported. Southern Louisiana and Texas are done with the first crop harvest and are waiting for the second crop to mature. The harvest is wrapping up in the northern states. Quality is said to be very good, especially in Arkansas. Milling yields are higher and appearance is very good with minimal chalk or peck showing. The harvest should be almost complete this week in almost all states.
Overnight News: The Delta should get mostly dry conditions but big rains this weekend from the hurricane. Temperatures should trend to near to above normal.
Chart Analysis: Trends are up with objectives of 1277 and 1297 November. Support is at 1257, 1242, and 1239 November, with resistance at 1275, 1280, and 1290 November.

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Disclaimer: Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also ...

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