Grains Report - Monday, Dec. 14

WHEAT
General Comments: Winter Wheat markets were higher in reaction to news that the Russian government is looking to tame food inflation inside the country by taxing and issuing new export quotas on Wheat along with some other agricultural products. US prices moved very close to international prices and US markets searched for new demand. Export demand has started to improve with the close price relationships although they are still not huge. World prices have held steady or worked a little higher even with additional supplies available to the market as Russian prices remain elevated. Australian supplies have increased as its harvest is moving forward. US weather is mixed with still dry conditions in the western Great Plains. Some precipitation was reported in the eastern Great Plains and in parts of the Midwest. Parts of eastern Ukraine and southern Russia remain dry. USDA increased export demand and cut ending stocks in its supply and demand reports released Thursday.
Overnight News: The southern Great Plains should get scattered showers starting Thursday. Temperatures should be above normal. Northern areas should see mostly dry conditions or isolated showers. Temperatures will be above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are up with objectives of 639 March. Support is at 610, 600, and 592 March, with resistance at 623, 629, and 633 March. Trends in Kansas City are up with objectives of 602 March. Support is at 575, 567, and 557 March, with resistance at 592, 598, and 604 March. Trends in Minneapolis are up with objectives of 596 March. Support is at 570, 564, and 558 March, and resistance is at 581, 586, and 589 March.

RICE
General Comments: Rice was higher last week as trading reflected the lack of activity in the domestic cash market. Trading volumes have been less for the last couple of weeks. The cash market is slow and the lack of business is reflected in futures volumes traded. Reports indicate that domestic demand has been poor to average with better consumer demand more than offset by much less demand from schools and other institutions. USDA cut long grain export demand and increased ending stocks estimates in its supply and demand reports released on Thursday. The reports should have been bearish to prices but futures were able to rally anyway.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be near to above normal.
Chart Analysis: Trends are mixed. Support is at 1231, 1221, and 1220 January, with resistance at 1252, 1256, and 1257 January.

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