Grains Report - Monday, June 24

variety of assorted-color beans

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Wheat:

General Comments: Wheat was lower in all three markets last week on reports of cheaper prices offered from Russia and as the US harvest expands and even as adverse world growing conditions are still around. There are more reports of hot temperatures coming this week to Russian growing areas. It has also been very dry there. The weather is still a key, with extreme dryness reported in Russia and parts of the US and too wet conditions reported in Europe. However, US producers are reporting strong yields that exceed expectations so far and very good conditions. Big world supplies and low world prices are still around.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be above normal. Northern areas should see mostly dry conditions. Temperatures will average above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are down with objectives of 558 July. Support is at 558, 550, and 543 July, with resistance at 593, 603, and 632 July. Trends in Kansas City are down with no objectives. Support is at 580, 568, and 554 July, with resistance at 623, 630, and 643 July. Trends in Minneapolis are down with no objectives. Support is at 608, 596, and 590 July, and resistance is at 635, 656, and 659 July.
 

Rice:

General Comments: Rice closed near unchanged last week. The big US crops are now in doubt from reports of extreme rains in southern growing areas and especially near Houston. Supply tightness is expected to give way to increased production this year and greatly increased supplies this Fall. These ideas are reflected in the prices seen in the old crop and the new crop. Big storms have brought significant rains to crops in Texas, but the weather is better now.
Overnight News:
Chart Analysis: Trends are mixed. Support is at 1753, 1741, and 1725 July and resistance is at 1823, 1872, and 1900 July

 

Corn And Oats:

General Comments: Corn closed lower last week on US weather that remains hot and mostly dry now, but should turn cooler next week. The US Midwest is still seeing good growing conditions although it has turned hot and dry now. The heat is expected to partially end next week but dry weather remains a concern. The market anticipated that crop condition ratings would be very high in the USDA reports last week and will anticipate high crop ratings this week. Oats were lower on good growing conditions found in the northern US and into Canada. Demand has been a force behind the rally. Increased demand was noted in most domestic categories along with rising basis levels, and export demand has been strong.
Overnight News:
Chart Analysis: Trends in Corn are mixed to down with no objectives. Support is at 434, 428, and 422 July, and resistance is at 452, 456, and 460 July. Trends in Oats are down with no objectives. Support is at 298, 292, and 286 July, and resistance is at 320, 330, and 340 July.

 

Soybeans:

General Comments: Soybeans and Soybean Meal closed lower last week on good but deteriorating growing conditions in the US and on forecasts for less heat in the Midwest this week. Precipitation chances are uncertain but the heat is expected to be less. There were wire reports that China prices are weakening amid veery strong imports from Brazil and from the US. US exports are more than 150% higher than a year ago due to logistical and production problems this year in Brazil. Reports indicate that China remains an active buyer of Soybeans in Brazil but has cut back on demand if the domestic market does not improve and on ye tax issues in Brazil. Some of that demand has moved to the US. China said that it has increased exports of Soybean Meal due to the weaker internal demand. Domestic demand has been strong in the US but has suffered as crushers were crushing for oil. Oil demand has suffered as cheaper alternatives for feedstocks hit the biofuels market.
Overnight News: Philippines bought 228,000 tons of US Soybean Meal.
Chart Analysis: Trends in Soybeans are down with objectives of 1155 and 1123 July . Support is at 1146, 1141, and 1134 July, and resistance is at 1180, 1193, and 1205 July. Trends in Soybean Meal are mixed to down with objectives of 350.00 and 324.00 July. Support is at 350.00, 345.00, and 342.00 July, and resistance is at 373.00, 376.00, and 381.00 July. Trends in Soybean Oil are mixed to down with objectives of 4330 and 4130 July. Support is at 4310, 4270, and 4250 July, with resistance at 4530, 4690, and 4780 July.

 

Canola And Palm Oil

General Comments: Palm Oil was a little lower last week in range trading. Export demand has been very strong in recent private reports. There is talk of increased supplies available to the market, but the trends are up on the daily and weekly charts. Canola was a little higher last week despite reports of generally good conditions in Canada and as the Canadian Dollar rallied. The Brazil news was bearish as well.
Overnight News:
Chart Analysis: Trends in Canola are down with objectives of 593.00 and 566.00 July. Support is at 597.00, 594.00, and 585.00 July, with resistance at 626.00, 642.00, and 645.00 July. Trends in Palm Oil are mixed. Support is at 3880, 3860, and 3780 September, with resistance at 3970, 4020, and 4080 July.


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