Grains Report - Thursday, Dec. 17

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General Comments: Corn and Oats closed a little higher on what appeared to be partly industry user buying. Corn is being supported by firming basis levels in the US and South America. It has rained in parts of Argentina and in parts of Brazil in the past week and more is in the forecasts for the coming two weeks. No one will see showers or rains each day, but just about everyone should get at least some precipitation over the two week period. Southern Brazil and Argentina should get important rains today, then drier weather again. Drought could develop in Brazil and Argentina despite the rains this week as the overall weather patterns have been dry. The current drought is especially serious in South America for the first Corn crop but the second crop could also be affected due to late planting in central and northern Brazil. Dry weather has delayed the Soybeans planting and that will delay the second Corn planting later. Farmers will not plant if it gets too late in the year as the rains will shut off before the crop gets mature.
Overnight News:
Chart Analysis: Trends in Corn are mixed to up with no objectives. Support is at 424, 418, and 415 March, and resistance is at 430, 436, and 439 March. Trends in Oats are mixed to up with no objectives. Support is at 330, 330, and 325 March, and resistance is at 339, 343, and 345 March.

General Comments: Soybeans closed a little lower and products closed higher as cash markets are firm and despite better rains in South America and the lack of Chinese demand for US Soybeans. US and South American cash markets have been firming despite the sideways action of late in futures. The NOPA crush report was called bullish for Soybeans and both products. China continues to buy in small amounts each day but has canceled some contracts made to unknown destinations again in the past week. Production potential is being threatened in South America due to the lack of rainfall. The situation has improved in southern Brazil and Argentina due to recent rains. These rains have moved to the north to help out producers in central and northern Brazil. Other rains are being seen in the south over the next couple of days, then drier conditions are forecast. The world will need very strong production from South America to meet the projected demand. The stocks to use ration for Soybeans is now very small and the situation is the tightest projected in years. Higher Soybeans prices are likely.
Overnight News:
Chart Analysis: Trends in Soybeans are up with objectives of 1207, 1209, and 1245 January. Support is at 1172, 1168, and 1162 January, and resistance is at 1200, 1220, and 1236 January. Trends in Soybean Meal are up with objectives of 401.00 January. Support is at 390.00, 385.00, and 381.00 January, and resistance is at 401.00, 404.00, and 407.00 January. Trends in Soybean Oil are up with objectives of 4090 and 4530 January. Support is at 3860, 3830, and 3810 January, with resistance at 3960, 3990, and 4020 January.

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