Grains Report - Thursday, Dec. 17

WHEAT
General Comments: Winter Wheat markets were a little lower after a wide-ranging session that saw new highs and lows for the week made. Futures have rallied in the last few days in reaction to news that the Russian government is looking to tame food inflation inside the country by taxes of $30.00 per ton on Wheat along with taxes on some other agricultural products. News that Egypt paid its highest price in five years for Romanian and Ukrainian Wheat earlier this week was also bullish. All of this now appears to be part of the futures price. US prices remain very close to international prices and US markets searched for new demand. Export demand has started to improve slightly with the close price relationships although they are still not huge. World prices have held steady or worked a little higher even with additional supplies available to the market as Russian prices remain elevated. Australian supplies have increased as its harvest is moving forward. US weather is mixed with still dry conditions in the western Great Plains. Some precipitation was reported in the eastern Great Plains and in parts of the Midwest. Parts of eastern Ukraine and southern Russia remain dry.
Overnight News: The southern Great Plains should get mostly dry conditions but light precipitation on Friday. Temperatures should be below normal. Northern areas should see mostly dry conditions or isolated showers. Temperatures will be below normal. The Canadian Prairies should see isolated showers. Temperatures should average below normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 590, 584, and 572 March, with resistance at 608, 610, and 622 March. Trends in Kansas City are mixed. Support is at 556, 553, and 545 March, with resistance at 573, 576, and 586 March. Trends in Minneapolis are mixed. Support is at 553, 548, and 543 March, and resistance is at 563, 565, and 574 March.

RICE
General Comments: Rice was slightly higher with speculators moving from January to March positions. Directional trading was quiet. Trading volumes were good because of the roll yesterday, but have been less for the last couple of weeks. The cash market is slow and the lack of business is reflected in futures volumes traded. Reports indicate that domestic demand has been poor to average with better consumer demand more than offset by much less demand from schools and other institutions.
Overnight News: The Delta should get mostly dry conditions but light precipitation on Friday. Temperatures should be near to below normal.
Chart Analysis: Trends are mixed. Support is at 1227, 1221, and 1220 January, with resistance at 1240, 1250, and 1252 January.

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