Grains Report - Monday, April 19

Overnight News: The Delta should get mostly dry conditions. Temperatures should be below normal.

Chart Analysis: Trends are down with objectives of 1267, 1264, and 1246 May. Support is at 1284, 1279, and 1276 May, with resistance at 1300, 1304, and 1309 May.

CORN AND OATS

General Comments: Corn closed higher on what appeared to be speculative buying based on ideas of strong demand and long-term weather outlooks for warm and dry weather west of the Mississippi River. There are also concerns about the production potential for the Safrinha crop in Brazil. Oats were higher. Chinese demand had been strong until recently and it looks like they need the Corn. Prices inside China for Corn remain extremely high. It is drier in central and parts of northern Brazil, and farmers have finally harvested the Soybeans area and planted the Winter Corn. The Winter Corn crop progress is well behind normal and it has been dry in major growing areas. Some showers are possible in southern areas this week. Showers could also fall in the north for some temporary support to Corn in both areas, but much more and more general rains are needed. Demand for US Corn has been coming at a stronger pace than estimated by USDA and it looks like US ending stocks can be significantly less than current projections by the end of the year.
Overnight News:

Chart Analysis: Trends in Corn are up with objectives of 604, 607, and 614 May. Support is at 584, 566, and 561 May, and resistance is at 602, 608, and 614 May. Trends in Oats are mixed to up with objectives of 391, 409, and 457 May. Support is at 379, 376, and 371 May, and resistance is at 386, 387, and 390 May.

SOYBEANS

General Comments: Soybeans were higher and Soybean Meal was about unchanged last week. Soybeans have been rallying with Corn and Soybean Oil. Also, there is still crush demand and export demand even though the demand is less now than before. The US does not have a lot of Soybeans in the country anymore as most producers have already sold. Buyers are scrambling for what is left. The Brazil harvest had been delayed due to late planting dates early due to dry weather and now too much rain that has caused harvest delays and some quality problems in the north as well. Harvest activities have increased but the harvest remains very slow overall. China has been buying for next year here but now is buying mostly in South America. US internal demand has been strong. Soybean Meal is under pressure on ideas of big production caused by the big rally in Soybean Oil. Production of DDG can increase in the near future as ethanol demand improves and more people start driving again.
Overnight News:

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