WHEAT
General Comments: All three Wheat markets closed lower last week as growing conditions at home and abroad have improved. USDA released its monthly supply and demand reports and made no real changes for the US data but did cut ending stocks estimates in its world data. There are still reports that the weather has reduced production potential in Ukraine and Russia and reports of dry weather in some parts of the EU and China. Russia is forecasting a large reduction in Wheat production for the coming year. Winter crops in the Great Plains are reported to be in good condition, but Spring Wheat crops in the northern Great Plains and into Canada have been dry. Some rain is in the forecast for the northern Great Plains this week and wetter and warmer conditions are now forecast for the southern Plains as well. It is too wet in the Delta and Southeast. Overall demand for world Wheat has been weak.
Chart Analysis: Trends in Chicago are mixed Support is at 520, 514 and 508 July, with resistance at 557, 561, and 569 July. Trends in Kansas City are mixed. Support is at 514, 508, and 502 July, with resistance at 557, 563, and 574 July. Trends in Minneapolis are up. Support is at 608, 596, and 590 July, and resistance is at 640, 645, and 659 July.

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RICE
General Comments: Rice was a little higher last week in part in response to the USDA supply and demand reports. USDA cut production by reducing planted area and yields due to the wet weather seen in the Delta. Demand was also cut back but not as much as supply so ending stocks were a little lower. World data showed the potential for higher ending stocks. Chart trends are up on the daily charts. There is still a lot of speculative buying seen in the market that is thought to be mostly short covering, but commercial buying has been very strong as well. The cash market has been slow with mostly quiet domestic markets and average export demand. Milling quality of the Rice remains below industry standards and it takes more Rough Rice to create the grain for sale to stores and exporters. Rice has emerged in most growing areas now. Condition has been rated as good but too much rain has been reported in southern areas.
Chart Analysis: Trends are mixed to up. Support is at 1315, 1282, and 1261 July and resistance is at 1371, 1402, and 1410 July.

CORN AND OATS
General Comments: Corn was a little higher last week after trading lower earlier in the week on ideas of better demand and despite forecasts for good weather. July gained slightly on December on the spreads but remained near even money. EPA on Friday released its proposed renewable fuels blending requirements that were considered supportive for Corn. EPA wants increased use of biofuels, and the government wants the new demand filled by US farmers. USDA left its US production ideas unchanged but increased export demand and cut ending stocks as anticipated by many traders. World ending stocks ideas were also trimmed by USDA. Forecasts for improved growing conditions in the Midwest through this weekend were a reason to sell. Warmer and drier weather is in the forecast for this week, but temperatures should turn a little cooler over the weekend. Warm weather returns in the forecasts for next week. A severe drought is seen in central Nebraska and moderate drought extends east in a corridor into the Chicago area. Most of the Midwest has seen adequate or greater precipitation and it is still too wet in the eastern and southern parts. Demand for Corn in world markets remains strong. Oats were higher.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 431, 428, and 425 July, and resistance is at 456, 465, and 470 July. Trends in Oats are mixed. Support is at 370, 367, and 364 July, and resistance is at 390, 396, and 402 July.

SOYBEANS
General Comments: Soybeans were higher and Soybean Oil was limit up on Friday, but Soybean Meal was a little lower after the release of the new EPA biofuels blending requirements were released. The proposals increase the demand for Corn and Soybeans for blending requirements, although not as much as the industry wanted. Even so, it was a win for US agriculture and caught the market by surprise as the president has been against clean energy in the past. USDA made no significant changes to the US supply and demand estimates b ut increased ending stocks estimates for the world despite unchanged Brazil and Argentine production ideas. China and the US announced a couple of days ago that they had made a trade agreement that will allow Chinese students to attend US universities in exchange for rare earth metals. No mention of agriculture was made. Forecasts for good growing conditions in the Midwest and as cheaper prices reported from Brazil are still being heard. The market could remain under pressure as Brazil basis levels have been under pressure the last few weeks and prices in world markets for Brazil Soybeans are now less than those from the US. Export demand is in its seasonal doldrums. Export demand remains less for US Soybeans as China has been taking almost all the export from South America. Warmer temperatures and drier conditions are expected this week after a cold and wet week last week. A severe drought is seen in central Nebraska and moderate drought extends east in a corridor into the Chicago area. Most of the Midwest has seen adequate or greater precipitation and it is still too wet in southern and eastern areas.
Overnight News:
Analysis: Trends in Soybeans are mixed. Support is at 1046, 1043, and 1033 July, and resistance is at 1073, 1082, and 1105 July. Trends in Soybean Meal are mixed. Support is at 290.00, 287.00, and 284.00 July, and resistance is at 300.00, 302.00, and 306.00 July. Trends in Soybean Oil are up. Support is at 4920, 4700, and 4630 July, with resistance at 5110, 5260, and 5340 July.

PALM OIL AND CANOLA
General Comments: Palm Oil futures were higher last week with the price action in Chicago and hopes for improved Indian demand. Futures were higher today on higher prices in competing oils. Ideas that current increased production levels mean higher inventories in MPOB monthly data are still around. Ideas of increasing production and reduced demand are also heard. Canola was higher. Trends are up on the daily charts and are turning up on the weekly charts. The weather has generally been dry for planting and crop development in the Prairies with warm and dry weather around lately.
Chart Analysis: Trends in Canola are up. Support is at 680.00, 662.00, and 649.00 July, with resistance at 747.00, 753.00, and 759.00 July. Trends in Palm Oil are mixed to up. Support is at 3810, 3770, and 3720 September, with resistance at 3960, 3980, and 4020 September.

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