Grains Report - Thursday, Jan. 14


General CommentsWheat markets were mostly higher and trends turned up on the daily charts. Only Chicago SRW was lower. It was mostly a consolidation day after the USDA reports were released on Tuesday.USDA cut ending stocks and increased domestic feed demand to account for less than expected quarterly stocks. World markets remained stable and there are more forecasts for rain and snow in the southern Great Plains. Rain and snow will be beneficial to crops in the region. Southern Russia has also gotten some rain and snow now as the crops there are dormant. The snow can help protect crops against Winterkill and the rain and snow can be used in the Spring to support initial growth..US prices remain very close to international prices and US markets have searched for new demand. Export demand has remained stable and moderate with the close price relationships. World prices have held steady or worked higher even with additional supplies available to the market as Russian prices remain elevated. Australian supplies have increased as its harvest is moving to completion.

Overnight News: The southern Great Plains should get isolated showers or dry conditions. Temperatures should be near normal. Northern areas should see scattered showers today and tomorrow, then mostly dry conditions. Temperatures will be above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.

Chart Analysis: Trends in Chicago are up with objectives of 686 and 721 March. Support is at 648, 629, and 614 March, with resistance at 682, 688, and 694 March. Trends in Kansas City are up with objectives of 663 and 674 March. Support is at 616, 602, and 587 March, with resistance at 639, 642, and 648 March. Trends in Minneapolis are up with objectives of 650 March. Support is at 618, 612, and 606 March, and resistance is at 636, 638, and 644 March.


General Comments:  Rice was sharply higher once again in response to the USDA reports. USDA increased domestic demand sharply and cut ending stocks estimates. Exports were reduced and production was increased slightly. Cash market sources doubt the increased domestic demand, but speculators are buying. The cash market is still slow and has been steady until this week. 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. However, USDA must expect domestic demand to increase a lot very soon.

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