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WHEAT
General Comments: Wheat markets were sharply higher yesterday as the war between Russia and Ukraine got hotter. Russia once again attacked and partially destroyed the export facilities in Odessa and said that any ships hauling Ukrainian grain would be considered instruments of war and able to be bombed. It is now certain that there will be no grain deal soon for exports through the Black Sea. Also, it is unlikely that any ship owner or ship insurer will take the chance on any passage of Ukrainian grain through the Black Sea, and maybe not for Russia, either. The world access to Wheat from at least one and perhaps both countries just got a lot more restricted. Weather forecasts call for drier weather for the northern Great Plains and Canadian Prairies although it will not be real hot. Canada increased its Wheat planted area on Tuesday so production ideas from that country were higher but it is now suffering potential crop losses due to dry weather.
Overnight News: The southern Great Plains should get isolated showers. Temperatures should be above normal. Northern areas should see isolated 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 734 and 793 September. Support is at 689, 680, and 675 September, with resistance at 733, 761, and 770 September. Trends in Kansas City are up with objectives of 888 and 943 September. Support is at 856, 847, and 828 September, with resistance at 889, 902, and 926 September. Trends in Minneapolis are up with objectives of 924 September. Support is at 894, 882, and 866 September, and resistance is at 918, 924, and 931 September.

RICE
General Comments: Rice closed higher again yesterday and rallied to new highs for the move. This has been an extremely volatile market lately. Growing conditions are very in southern growing areas and the overall new crop price strength has not been good so far. There are some reports of initial harvest going on in southern areas. The weather is still good for crop development. Export demand has been uneven.
Overnight News: The Delta should get a few showers. Temperatures should be above normal.
Chart Analysis: Trends are mixed to up with no objectives. Support is at 1554, 1539, and 1512 September and resistance is at 1572, 1584, and 1596 September.

CORN AND OATS
General Comments: Corn was higher along with the price action in Wheat and the increasing fight between Ukraine and Russia and as weather forecasts turned mostly dry for the Midwest. The weather features mostly dry conditions for major growing areas for the week after beneficial precipitation last week for some areas. It will be cool so additional stress is not really expected but some stress is now likely. Longer range maps also feature dry weather along with warmer temperatures and the crops will need rather consistent rains after the dry period of three months before July appeared. That is when stress could reappear in the crops. The crops are reported to be in mostly good condition now . Demand for US Corn in the world market has been very low and domestic demand has been weak due to reduced Cattle and other livestock production. The Brazil Corn harvest is underway and so export prices for Corn from Brazil are getting relatively cheap and Brazil is getting the business. Brazil Winter corn is now 36% harvested, from 27% last week and 53% last year. A sideways and choppy trading pattern is possible this week.
Overnight News:
Chart Analysis: Trends in Corn are up with no objectives. Support is at 521, 502, and 495 September, and resistance is at 557, 573, and 579 September. Trends in Oats are mixed to up with objectives of 502 September. Support is at 430, 414, and 398 September, and resistance is at 454, 460, and 466 September.

SOYBEANS
General Comments: Soybeans and the products were higher again yesterday as the weather forecasts call for dry conditions for the Midwest for the future. Mostly dry conditions are forecast for this week and longer-range maps also indicate the potential for dry weather. Temperatures are expected to be a little below normal this week. Big showers and storms were reported in Chicago and parts of the Midwest last week. Ideas are that the top end of the yield potential is gone but severe damage has not been reported yet but is becoming possible in some areas. In fact, yield ideas are probably increasing in some areas due to the recent and forecast weather but dropping in others. Reports indicate that bio fuels demand for Soybean Oil is very strong despite the moves in Washington to keep bio fuels demand at more moderate levels and is pushing domestic demand for Soybeans. Brazil basis levels are still low and the US is being shut out of the market for most importers. Brazil is still selling a lot of Soybeans to China and other countries. Brazil has a very good crop, but the additional Soybeans grown in Brazil will be partially wiped out by the losses in Argentina.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1440, 1425, and 1383 August, and resistance is at 1518, 1524, and 1526 August. Trends in Soybean Meal are up with no objectives. Support is at 439.00, 434.00, and 409.00 August, and resistance is at 452.00, 456.00, and 459.00 August. Trends in Soybean Oil are mixed. Support is at 6320, 6210, and 6160 August, with resistance at 6720, 6740, and 6860 August.

CANOLA AND PALM OIL
General Comments: Palm Oil was lower again yesterday in consolidation trading. The market remains in a trading range. The export data from private sources was reported to be positive by the wire services. Ideas are that current demand is generally weak, with China struggling to open its economy and India looking to Sun oil for imports at the expense of other vege It was higher today on reports of stronger export demand from the private sources and on Chicago price action.table oils. Canola was higher again on dry Prairies growing conditions. Drier weather is forecast for the Prairies. Trends are up on the daily charts in sympathy with the weather.
Overnight News:
Chart Analysis: Trends in Canola are up with no objectives. Support is at 830.00, 821.00, and 793.00 November, with resistance at 857.00, 867.00, and 875.00 November. Trends in Palm Oil are mixed. Support is at 3830, 3810, and 3750 October, with resistance at 3980, 4070, and 4170 October.

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Grains Report - Tuesday, July 18
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