Grains Report - Monday, Oct. 5

General Comments: Winter Wheat markets were higher and made new highs for the move last week. USDA released its stocks estimates and stocks were close to expectations at 2.158 billion bushels. US Whet production for 2020 was estimated by USDA at 1.83 billion bushels, down 5% from 2019. Soft Red Winter and Hard Red Winter production were down, but increases were noted for White Winter, Durum, and Other Spring Wheat. The world demand for US Wheat depends mostly on lower prices for US Wheat to compete with Russia, Europe, and other sellers. The overseas weather is mixed. Western Europe is likely to get some big rains in the short term, but southern Russia could stay dry. Some showers are forecast for Ukraine this week. The country has also been dry. These areas are trying to plant the next Winter Wheat crop but the dry weather and the dry soils are keeping farmers out of the fields. Less production is likely in Argentina due to drought. About a quarter of Argentine growing areas are affected after some beneficial rains in some areas last week. Conditions are improved in the US after some rains fell in the Great Plains but the western Great Plains remains mostly hot and dry. The Midwest has had good rains.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be near to below normal. Northern areas should see isolated showers. Temperatures will average near to below normal. The Canadian Prairies should see isolated showers. Temperatures should average near to above normal.
Chart Analysis: Trends in Chicago are mixed to up with no objectives. Support is at 561, 557, and 552 December, with resistance at 578, 587, and 590 December. Trends in Kansas City are up with no objectives. Support is at 498, 490, and 483 December, with resistance at 515, 525, and 528 December. Trends in Minneapolis are mixed. Support is at 531, 523, and 519 December, and resistance is at 540, 547, and 549 December.

General Comments: Rice was slightly higher last week as the harvest pressure went against improved demand ideas. US export demand was very strong last week with over 121,000 tons sold. Brazil was the main buyer with over 70,000 tons purchased. Mexico and Honduras were also good buyers. There was talk in the market that Iraq had tendered, but there was no result announced. The rebound in demand supported futures and pushed the market to test recent highs for the move. The harvest has been active in most states with good field yields reported. Southern Louisiana and Texas are down with the first crop harvest and are waiting for the second crop to mature. Quality is said to be very good, especially in Arkansas. Milling yields are higher and appearance is very good with minimal chalk or peck showing.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be below normal.
Chart Analysis: Trends are mixed. Support is at 1239, 1237, and 1222 November, with resistance at 1260, 1267, and 1290 November.

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Disclaimer: Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also ...

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