Grains Report - Monday, Dec. 21

WHEAT
General Comments: Winter Wheat markets were lower 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. Minneapolis Spring Wheat contracts closed higher. 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. 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 even though a few areas got some snow. Some precipitation was reported in the eastern Great Plains and in parts of the Midwest. Parts of eastern Ukraine and southern Russia remain dry.
Overnight News: The southern Great Plains should get mostly dry conditions but light precipitation on Friday. Temperatures should be near to above normal. Northern areas should see mostly dry conditions or isolated showers. Temperatures will be above normal. The Canadian Prairies should see isolated showers. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 606, 594, and 590 March, with resistance at 615, 620, and 623 March. Trends in Kansas City are mixed. Support is at 564, 560, and 556 March, with resistance at 586, 588, and 597 March. Trends in Minneapolis are mixed to up with objectives of 588, 596, and 608 March. Support is at 563, 556, and 553 March, and resistance is at 574, 581, and 589 March.

RICE
General Comments: Rice was higher last week as trading reflected the lack of activity in the domestic cash market. The weekly export sales report featured strong demand from Venezuela and strong demand overall and caused futures to rally. 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. Futures have ignored the bearish data from the monthly WASDE reports in the past week and a half.
Overnight News: The Delta should get mostly dry conditions but light precipitation on Friday. Temperatures should be near to below normal today, then trend to near to above normal.
Chart Analysis: Trends are mixed to up with objectives of 1275, 1308, and 1337 March. Support is at 1248, 1236, and 1230 January, with resistance at 1267, 1270, and 1276 January.

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