Photo by Marek Studzinski on Unsplash
 

Wheat

General Comments: Wheat markets closed lower yesterday, with Chicago just a little lower but bigger losses in Minneapolis and Kansas City as traders prepared for the production and stock estimates to be released this morning and on news that Russia has taken a day off from bombing Ukrainian ports in retaliation for Ukrainian strikes on Russia over the weekend. There was a lot of business done to North African countries yesterday by Russia and EU countries, but nothing was reported to be done by the US. Russia is still exporting and offering Wheat into the world market at $270.00 per ton and is getting quite a bit of business. Ukraine and the EU countries are offering as well and are getting new business due to the higher Russian prices. Demand has been poor for US Wheat as Russia's production looks strong and exports from Russia have not abated and Ukraine is still exporting, although mostly over land through the EU at higher costs. Ukraine has lately shipped at least three loads of grain through the Black Sea after bombing a lot of Russian ships to allow for safe passage. Weather forecasts call for drier weather for Australia and Argentina, with production losses now expected for both countries.
Overnight News: The southern Great Plains should get isolated showers. Temperatures should be above normal. Northern areas should see isolated showers. Temperatures will average above normal. The Canadian Prairies should see scattered showers. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 570, 564, and 558 December, with resistance at 600, 607, and 616 December. Trends in Kansas City are down with objectives of 652 December. Support is at 681, 675, and 668 November, with resistance at 703, 707, and 716 December. Trends in Minneapolis are down with no objectives. Support is at 745, 740, and 734 December, and resistance is at 766, 777, and 791 December.
 

Rice

General Comments: Rice closed a little lower again in correction trading. The USDA reports will be released on Friday but should not affect prices as this is a stock report and not a production report. Ideas are that production will be less in this and coming reports. Yields are called average to below average in Texas and average so far in Arkansas as the harvest moves forward. The quality has been uneven with some crops affected by the extreme heat seen during the growing season. India will not allow Rice exports except for Basmati for now because not enough rain in some production areas. Northern areas are too wet and southern areas are too dry.
Overnight News: The Delta should get isolated showers, mostly near the Gulf Coast. Temperatures should be above normal.
Chart Analysis: Trends are mixed. Support is at 1588, 1577, and 1573 November and resistance is at 1629, 1637, and 1640 November.
 

Corn And Oats

General Comments: Corn and Oats were higher yesterday, with Corn most traders looking ahead to the next round of USDA reports to be released on Friday. It is the quarterly stocks report for Corn and other feed grains The Corn harvest is underway with yield reports showing good and bad results with no real trend evident. The yield reports once again show the value of using GMO seeds as stressful weather was seen in much of the Midwest over the Summer growing season. The market has also been supported as farmers report no real sales of Corn as they wait for higher prices. Weather forecasts remain mostly dry but with moderate temperatures for the Midwest for the next week. The harvest is coming so moisture needs are less, and many producers report that Corn is shutting down early and that the harvest could start sooner than normal. Demand for US Corn in the world market has been very low and domestic demand has been weak due to reduced Cattle and other livestock production. The Brazil Corn harvest is underway and so export prices for Corn from Brazil are relatively cheap and Brazil is getting the business. That could change in the coming year is the growing conditions deteriorate in Brazil as is possible in an El Nino year.
Overnight News: Mexico bought 223,540 tons of US Corn.
Chart Analysis: Trends in Corn are mixed. Support is at 478, 474, and 465 December, and resistance is at 493, 499, and 507 December. Trends in Oats are mixed to up with objectives of 469 and 496 December. Support is at 430, 418, and 410 December, and resistance is at 456, 465, and 480 December.
 

Soybeans

General Comments: Soybeans and Soybean Oil closed lower yesterday on speculative buying as the harvest starts to expand. Soybean Meal closed a little higher on spreads against Soybean Oil. Traders are mostly getting ready for the USDA crop reports that will be released on Friday. Initial yield results show that production and yields are above and below APH data with no real trend showing just yet. The data shows that GMO seeds once again supported better production for many producers. Speculators were liquidating long positions. Ideas that yields are disappointing and reports from USDA of new sales of Soybeans provided the support. Weather forecasts call for dry conditions and near to below-normal temperatures for the Midwest. Most longer-range maps indicate the potential for dry weather. Temperatures are expected to be near to above normal. Ideas are that the top end of the yield potential is gone and severe damage is becoming possible in some areas. Brazil's basis levels are still low, and the US is being shut out of the market for most importers, but the US is price competitive now. Brazil is still selling a lot of Soybeans to China and other countries.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1287, 1282, and 1276 November, and resistance is at 1317, 1322, and 1346 November. Trends in Soybean Meal are mixed to down with no objectives. Support is at 388.00, 385.00, and 379.00 December, and resistance is at 397.00, 402.00, and 408.00 December. Trends in Soybean Oil are mixed to down with no objectives. Support is at 5660, 5520, and 5470 December, with resistance at 5900, 6000, and 6110 December.
 

Canola And Palm Oil

General Comments: Palm Oil was lower yesterday along with the price action in competing vegetable oils and on ideas of increasing supplies. Traders still think that El Nino will cause big production problems down the road and are holding out hopes for rallies in the future.. Canola was lower with Chicago price action and as the harvest has become more active. Drier weather is generally forecast for the Prairies and the crops have been stressed, but some rain is falling now to maintain crop conditions. Speculators were selling as the trends are turning down again.
Overnight News:
Chart Analysis: Trends in Canola are mixed to down with no objectives. Support is at 710.00, 694.00, and 686.00 November, with resistance at 729.00, 744.00, and 754.00 November. Trends in Palm Oil are mixed to up with objectives of 3810, 3900, and 4020 December. Support is at 3720, 3640, and 3560 December, with resistance at 3820, 3860, and 3710 December.

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