Grains Report - Monday, Dec. 6

WHEAT

General CommentsWheat closed mixed last week, with Winter Wheat markets lower and Minneapolis Spring Wheat contracts a little higher. Trends are now sideways in all three markets.Speculators were the best sellers last week on more news that a new Covid variant has been discovered in Africa.Reports indicate that the virus spreads rapidly but produces mild symptoms and this news caused buying yesterday.European nations were also starting to lock down again as the virus resurges there.Demand ideas got hurt over the last several days.Ideas have been that the US will have good demand for Wheat as the rest of the northern hemisphere is short production this year but so far demand has been average against previous years.Offer volumes are down from both Russia and Europe.  Dry weather in southern Russia as well as the northern US Great Plains and Canadian Prairies caused a lot less production and are still supporting the market.The lack of production has reduced the offers and Russia plans to announce sales quotas for next year very soon.Russia has already increased export taxes to control the flow of export Wheat out of the country.Australia has had too much rain and the crop quality has been much diminished.These international moves should increase demand for US Wheat but this has not really happened yet. 

Overnight News: The southern Great Plains should get mostly dry conditions or isolated showers.Temperatures should average above normal.Northern areas should see isolated showers. Temperatures will average above normal.The Canadian Prairies should see mostly dry conditions but some scattered showers on Wednesday and Thursday.Temperatures should average below normal.

Chart Analysis: Trends in Chicago are mixed.Support is at 799, 783, and 776 March, with resistance at 824, 845, and 847 March.Trends in Kansas City are mixed.Support is at 811, 807, and 789 March, with resistance at 850, 873, and 885 March.Trends in Minneapolis are mixed.Support is at 1001, 991, and 979 March, and resistance is at 1047, 1056, and 1058 March.

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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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