Grains Report - Monday, Sept. 28

General Comments: Corn and Oats were both a little lower last week. Demand is holding strong for exports, but it is harvest time and initial yield reports have been mixed but generally strong. The demand has come primarily from China as the state companies bought for the reserve, but that buying appears to be completed now. USDA has found less damage to crops in Iowa and northern Illinois due to the drought and derecho winds that hit both areas a month ago. That allowed for the higher yield, production, and ending stocks estimates. The harvest is concentrated in the southeast and Delta for now and has expanded into the Midwest with very good harvest conditions. The yield reports have been mixed but appear to be good overall. The harvest will produce a good crop, but maybe not a great crop.
Overnight News: Japan bought 110,000 tons of US Corn and unknown destinations bought 207,140 tons of US Corn.
Chart Analysis: Trends in Corn are mixed to down with objectives of 357 and 346 December. Support is at 362, 361, and 354 December, and resistance is at 368, 373, and 376 December. Trends in Oats are mixed. Support is at 279, 275, and 273 December, and resistance is at 289, 290, and 292 December.

General Comments: Soybeans and the products closed a little lower for the week as the harvest started to expand and as reports indicated that the Chinese buying for the reserve was finished. Funds and other speculators were the best sellers on the week in futures. Soybeans were the leader to the upside due to the strong Chinese demand until this week. The trade generally expects China to shift its buying back to Brazil in the near future, but Brazil has been dry as has Argentina and some of the early planting has been delayed. That might keep the Chinese buying in the US for a little longer, but only for the crushers and not for the reserve. Buying volumes should be less from China and the weekly export sales report should start to reflect less demand this week;
Overnight News: Unknown destinations bought 110,800 tons of US Corn.
Chart Analysis: Trends in Soybeans are mixed to down with objectives of 977 and 943 November. Support is at 985, 982, and 967 November, and resistance is at 1027, 1037, and 1048 November. Trends in Soybean Meal are mixed. Support is at 330.00, 327.00, and 319.00 October, and resistance is at 340.00, 348.00, and 351.00 October. Trends in Soybean Oil are down with no objectives. Support is at 3200, 3180, and 3160 October, with resistance at 3360, 3370, and 3400 October.

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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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