Grains Report - Thursday, Dec. 7

WHEAT
General Comments: Wheat markets were mostly lower and trends are still up on news of significant purchases of US Wheat by China over the weekend. Costs for transport of Ukraine Wheat are high and this has hurt any sales. Russia is still exporting and offering Wheat into the world market and is reporting that the crop is larger than originally thought. Ukraine and the EU countries are offering as well and are getting new business. Demand has been poor for US Wheat as Russia production looks strong, but exports are starting to increase. Argentine conditions are reported to be good after a very dry start but showers and rains in recent weeks. It has been too wet in southern Brazil and much of the Wheat grown there is expected to be feed grade instead of milling grade.
Overnight News: The southern Great Plains should get scattered showers. Temperatures should be above normal. Northern areas should see scattered showers. Temperatures will average above normal. The Canadian Prairies should see scattered showers. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are up with objectives of 657 March. Support is at 631, 622 and 609 March, with resistance at 653, 670, and 680 March. Trends in Kansas City are mixed. Support is at 633, 622, and 617 March, with resistance at 670, 677, and 687 \March. Trends in Minneapolis are mixed. Support is at 719, 716, and 698 March, and resistance is at 748, 753, and 768 March.

RICE
General Comments: Rice closed a little higher on some short covering. Short term trends remain down in this market. The weekly charts show that a big gap was closed with the price action last week since the gap was filled. Demand reports have been solid to strong for the last couple of weeks and have featured traditional buyers in Latin America and Asia ad some nontraditional buyers as well. The weekly export sales report showed very strong demand from Latin America. The daily and weekly chart trends are down.
Overnight News: The Delta should get isolated showers, mostly near the Gulf coast. Temperatures should be above normal.
Chart Analysis: Trends are down with objectives of 1661 January. Support is at 1681, 1663, and 1648 January and resistance is at 1707, 1729, and 1746 January.

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CORN AND OATS
General Comments: Corn closed lower as demand concerns kept futures on the defensive. Oats were higher. Ideas of weak demand are keeping prices low over all, but the weekly export sales reports have shown good demand for the last several weeks. The market feels that there is more than enough Corn for any demand and are not buying futures despite the improve demand. It is still hot and dry in central and northern Brazil and in Argentina although some beneficial rains have been reported in Argentina and in central and northern Brazil. Southern Brazil is still much too wet. There was some beneficial rains reported in central and northern areas last weekend and more showers and rains are possible this week.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 477, 471, and 468 March, and resistance is at 489, 493, and 496 March. Trends in Oats are mixed. Support is at 365, 356, and 351 March, and resistance is at 398, 403, and 405 March.

SOYBEANS
General Comments: Soybeans and the products closed lower yesterday on more reports of improved rains for central and northern Brazil this week although still too much rain was reported for southern Brazil. There are some forecasts for scattered showers and rains this week in central and northern Brazil and still very wet conditions in the south. Soybeans appears to be starting a new leg down on the charts. The weekly export sales report for Soybeans was not strong after the record sales report the previous week but sales to China continue. The trade remains concerned about the weather forecasts for South America. Brazil remains mostly hot and dry in northern areas and too wet in southern areas. Argentina crops are reported o be in good condition with enough moisture. These weather trends are expected to continue after next week.
Overnight News:
Chart Analysis: Trends in Soybeans are down with objectives of 1294 and 1261 January. Support is at 1292, 1270, and 1258 January, and resistance is at 1324, 1339, and 1352 January. Trends in Soybean Meal are down with objectives of 399.00 January. Support is at 406.00, 398.00, and 388.00 January, and resistance is at 425.00, 431.00, and 438.00 January. Trends in Soybean Oil are mixed. Support is at 4980, 4900, and 4820 January, with resistance at 5200, 5360, and 5420 January.

CANOLA AND PALM OIL
General Comments: Palm Oil was lower today along with weakness in Soybean Oil and on ideas of weaker demand for Palm Oil as the private sources reported improved demand for the month so far. Production was high in the MPOB reports but is expected to drop seasonally in future reports. Trends are sideways on the daily charts and are sideways on the weekly charts. Canola closed lower yesterday on the weather in Brazil. Current forecasts call for very wet weather in southern Brazil and wetter weather in central and northern areas this week. The Canola crop is harvested and it is in bins, so it will take some price movement to get new farm sales. Trends are down on the daily charts in this market.
Overnight News:
Chart Analysis: Trends in Canola are down with no objectives. Support is at 648.00, 642.00, and 636.00 January, with resistance at 672.00, 682.00, and 693.00 January. Trends in Palm Oil are down with objectives of 3680 February. Support is at 3680, 3640, and 3590 February, with resistance at 3760, 3860, and 3920 February.

Midwest Weather Forecast Mostly dry. Temperatures should average above normal.


More By This Author:

Softs Report - Tuesday, Dec. 5
Grains Report - Monday, Dec. 4
Softs Report - Wednesday, Nov. 29

Disclaimer: A Subsidiary of Price Holdings, Inc. – a Diversified Financial Services Firm. Member NIBA, NFA Past results are not necessarily indicative of future results. Investing in ...

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