Grains Report - Monday, Dec. 14

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CORN AND OATS
General Comments: Corn was a little higher last week but held inside the previous week's trading range. Oats moved sharply higher again last week. Little export demand was noted from China by USDA in the weekly export sales report. It has rained in parts of Argentina and in much of Brazil in the past week. Drought could develop in Brazil and Argentina despite the rains this week as the overall weather patterns have been dry. The drought is especially serious in South America for the first Corn crop but the second crop could also be affected due to late planting in central and northern Brazil. Dry weather has delayed the Soybeans planting and that will delay the second Corn planting later. Farmers will not plant if it gets too late in the year as the rains will shut off before the crop gets mature. USDA made no changes to its supply and demand estimates released Thursday. The trade had expected more demand and less ending stocks.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 418, 414, and 409 March, and resistance is at 427, 430, and 436 March. Trends in Oats are up with no objectives. Support is at 330, 320, and 315 March, and resistance is at 339, 342, and 345 March.

SOYBEANS AND PRODUCTS
General Comments: Soybeans and Soybean Meal closed a little lower on better rains in South America and the lack of Chinese demand for US Soybeans. China continues to buy in small amounts each day but has cancelled some contracts made to unknown destinations again in the past week. Production potential is being threatened in South America due to the lack of rainfall. The situation is most serious in central and northern Brazil, but has improved in southern Brazil and Argentina due to recent rains. These rains are leaving southern Brazil and Argentina now and will move to the north. Southern Brazil and Argentina will now turn warm and dry and this will be much more consistent with atypical La Nina pattern. The world will need very strong production from South America to meet the projected demand. The stocks to use ration for Soybeans is now very small and the situation is the tightest projected in years. Higher Soybeans prices are likely. USDA increased domestic demand for Soybeans in its monthly supply and demand updates but made no changes to export demand. Ending stocks were less, but the cut was less than the trade had expected and Soybeans started to move lower on Thursday.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1143, 1138, and 1130 January, and resistance is at 1174, 1178, and 1183 January. Trends in Soybean Meal are mixed to down with objectives of 376.00 and 363.00 January. Support is at 376.00, 366.00, and 362.00 January, and resistance is at 385.00, 392.00, and 394.00 January. Trends in Soybean Oil are mixed. Support is at 3790, 3720, and 3660 January, with resistance at 3870, 3900, and 3920 January.

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Disclaimer: A Subsidiary of Price Holdings, Inc. – a Diversified Financial Services Firm. Member NIBA, NFA Past results are not necessarily indicative of future results. Investing in ...

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