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WHEAT

General Comments: Wheat markets were a little higher on speculative short covering. The USDA production and WASDE reports showed little change from trade estimates and were not a reason to take a big position in the market one way or another.  There is a lot of talk that Russia continues to offer a lot of Wheat into the world market at very cheap prices to help keep demand for American Wheat very low, but the government there is setting a floor price at about $240.00 per ton in an effort to make more money.  The weather is still in focus here and around the world.  Scattered showers are being reported in southern areas.  Planting of Spring Wheat has been delayed due to reports some rain now in many of these areas so conditions are improving but might cause a few delays.  Dry conditions are a developing problem in Russia, and especially in the Spring Wheat areas there.  Ideas that big Russian offers and cheaper Russian prices would be a feature for a while in the world market was the driving force for the weaker prices, but this could soon change if the Spring Wheat production is not good. Ideas are that Russia are harvesting record to near record Winter Wheat crops this year, but Australian production ideas have been fading as El Nino hits the country.   

Overnight News:  The southern Great Plains should get isolated showers.  Temperatures should be above normal.  Northern areas should see isolated showers. Temperatures will average above normal.  The Canadian Prairies should see scattered showers.  Temperatures should average above normal.

Chart Analysis:  Trends in Chicago are mixed.  Support is at 611, 595, and 573 July, with resistance at 637, 641, and 648 July.  Trends in Kansas City are mixed.  Support is at 782, 762, and 756 July, with resistance at 811,  834, and 847 July.  Trends in Minneapolis are mixed.  Support is at 790, 774, and 769 July, and resistance is at 821, 838, and 840 July.

RICE

General Comments: Rice closed higher again last week, with July futures leading the way up as an apparent squeeze is under way for that month with deliveries coming at the end of the month.  New crop months have moved to much more moderate gains.  USDA made no real changes in its WASDE reports on Friday with ending stocks trimmed 1.0 million cwt for both old and new crop.  The weather is still good for crop development.  Old crop offers still seem hard to find right now, but demand has been a problem all year.  Export demand has been uneven.  Mills are milling for the domestic market in Arkansas and are bidding for some Rice, but at least some mills say they now have enough bought to last until the harvest of the next crop.

Overnight News:  The Delta should get scattered showers. Temperatures should be near to above normal.

Chart Analysis:  Trends are up with no objectives.  Support is at 1859, 1828, and 1793 July and resistance is at 1940, 1952, and 1964 July.

CORN AND OATS

General Comments:  Corn was lower and Oats were higher last week as Corn traders discounted the weather and concentrated non demand news.  Demand for US Corn in the world market has been very low and USDA cut its current year export demand estimate on Friday by 50 million bushels in the latest WASDE updates.  No changes were made for new crop supply or demand, so the 50 million bushel cut to demand went to increased current and new crop ending stocks estimates.  Reports of dry initial development conditions were important. However, some forecasters are calling for a pattern shift to cooler and wetter conditions starting last weekend.  Chicago got less than 0.2 inches of rain on Saturday and now looks mostly dry this week.  Corn is rolling leaves in southern Midwest areas but most of the Corn should be ok despite the warm and dry weather seen now.  Corn is still finding some support from little US producer selling interest.

Overnight News:   

Chart Analysis:  Trends in Corn are mixed.  Support is at 595, 581, and 579 July, and resistance is at 614, 616, and 624 July.  Trends in Oats are up with objectives of 373 July.  Support is at 350, 347, and 334 July, and resistance is at 372, 380 and 385 July.

SOYBEANS

General Comments:  Soybeans and Soybean Oil closed higher last week on reports of strong domestic demand and interior basis levels.  Growing conditions feature cool but very dry weather.  Some showers were expected in the Midwest over the weekend and would be welcomed where they fall.  Chicago got less than 0.2 inches of rain on Saturday and now looks mostly dry this week.  Reports indicate that bio fuels demand for Soybean Oil is very strong and is pushing domestic demand for Soybeans.  USDA made no new crop changes in the WASDE reports on Friday as expected.  Old crop export demand was cut by 15 million bushels and this was added to ending stocks for the current and the next year.  USDA left South American production estimates unchanged.  Brazil basis levels are still low and the US is being shut out of the market for most importers.  Brazil is still selling a lot of Soybeans to China and other countries.  Brazil has a very good crop, but the additional Soybeans grown in Brazil will be partially wiped out by the losses in Argentina.  Argentina has been forced to import from Brazil to keeps its crushing facilities operating. 

Overnight News:  

Chart Analysis:  Trends in Soybeans are mixed to up with no objectives.  Support is at 1352, 1340, and 1333 July, and resistance is at 1389, 1397, and 1413 July.  Trends in Soybean Meal are mixed.  Support is at 394.00, 386.00, and 382.00 July, and resistance is at 409.00, 416.00, and 422.00 July.  Trends in Soybean Oil are up with no objectives.  Support is at 5220, 5030, and 4970 July, with resistance at 5520, 5560, and 5650 July.

CANOLA AND PALM OIL

General Comments:  Palm Oil was higher on Friday and for the week.  Futures were lower today on higher than expected CPO stocks seen in the MPOB report and on weak export deamdn.  Trends are sideways on the daily charts and down on the weekly charts.  MPOB will release its data for May today.  In Malaysia, April production was 7% less than March at 1.196 million tons.  Exports were all down and ending stocks were estimated at 1.597 million tons, down over 10% from last month.  Ideas are that demand is generally weak, with China struggling to open its economy and India looking to Sunoil for imports at the expense of other vegetable oils.  Canola was higher on Friday and for the week.  Trends are turning sideways on the daily charts and are down on the weekly charts.  Reports indicate that domestic demand has been strong due to favorable crush margins, but export demand is questioned, especially since the release of the weaker than expected Chinese economic data last week.  Scattered showers and rains have been reported so planting and initial growth conditions are good.

Overnight News: 

Chart Analysis:  Trends in Canola are mixed to up with no objectives.  Support is at 663.00, 642.00, and 634.00 Juy, with resistance at 691.00, 708.00, and 710.00 July.  Trends in Palm Oil are mixed.  Support is at 3260, 3200, and 3190 August, with resistance at 3440, 3490, ad 3500 August.

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