Grains Report - Monday, Sept. 28

WHEAT
General Comments: Winter Wheat markets were lower on Friday and were lower for the week as the US Dollar turned higher and hurt demand hopes. World demand for US Wheat depends mostly on lower prices for US Wheat to compete with Russia, Europe, and other sellers, and the higher US Dollar against a basket of currencies makes this hard to happen. The overseas weather is mixed. Western Europe is likely to get some 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 half of Argentine growing areas are affected. Conditions are improved in the US after some rains fell in the Great Plains but the southern 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 below normal.
Chart Analysis: Trends in Chicago are mixed to down with objectives of 530 and 504 December. Support is at 541, 537, and 516 December, with resistance at 554, 560, and 568 December. Trends in Kansas City are mixed to down with objectives of 439 and 430 December. Support is at 470, 467, and 463 December, with resistance at 484, 490, and 500 December. Trends in Minneapolis are mixed to down with objectives of 505 December. Support is at 529, 523, and 519 December, and resistance is at 536, 540, and 545 December.

RICE
General Comments: Rice was slightly lower last week as the harvest pressure went against improved demand ideas. There was talk in the market that Iraq had tendered, but there was no result announced. The weekly export sales report was positive for the second week in a row. Export sales were down but still well above the four-week average. Brazil was a buyer of 7,000 tons of Rough Rice and much of Central America was noted buying as well. Total Brazil purchases are now 37,000 tons. 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. 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 scattered showers. Temperatures should be near to above normal.
Chart Analysis: Trends are mixed. Support is at 1232, 1222, and 1210 November, with resistance at 1260, 1267, and 1290 November.

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