WHEAT
General Comments: Wheat markets were lower again yesterday on ideas of weaker demand for US Wheat and as the Winter Wheat harvest is underway. The harvest was 10% complete in Monday USDA data and futures should forma harvest low earlier in the harvest due to the small crop size. USDA noted mostly stable conditions for the Winter Wheat crops on Monday but noted Spring Wheat planting remained far behind average. The US western Great Plains got some rainfall and the rains fell in some of the areas most in need of some precipitation. Hot and dry weather could return this week. It is turning warmer and drier farther north to give hope to Spring Wheat farmers that they can plant crops. Europe is too hot and dry and India and Pakistan are both past major heat waves and dry conditions.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should average above normal. Northern areas should see isolated showers or dry conditions. Temperatures will average above normal. The Canadian Prairies should see isolated showers. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 1037, 1027, and 1023 July, with resistance at 1082, 1093, and 1108 July. Trends in Kansas City are mixed. Support is at 1119, 1113, and 1087 July, with resistance at 1163, 1185, and 1192 July. Trends in Minneapolis are mixed. Support is at 1190, 1180, and 11855 July, and resistance is at 1237, 1248, and 1256 July.

Photo by Maddi Bazzocco on Unsplash

RICE
General Comments: Rice was lower yesterday but held recent lows for the move. It looked like a consolidation day yesterday as the markets waited for the Fed news. The Fed increased interest rates by 0.75% yesterday. Trends are turning mixed on the charts and the market could be forming a low. Growing conditions are said to be good. There are still ideas of less production of US Rice this year but the good conditions are starting to limit loss ideas. The emergence remains behind and acreage estimates are still down for the next crop. Some traders note that it will be difficult to move Rice at current price levels and they are worried about domestic and export demand moving forward.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be above normal.
Chart Analysis: Trends are mixed. Support is at 1622, 1611, and 1603 July and resistance is at 1661, 1672, and 1677 July.

CORN AND OATS
General Comments: Corn closed higher in July on reports of a stronger US cash market and mixed in new crop months. Corn has emerged under what is considered good conditions but it has turned hot in the Midwest. This will be good for a while but continued hot and dry weather could hurt yields down the road. . The areas left to be planted are primarily in the Dakotas and will not get planted as the insurance planting dates have passed. The risk to plant now would be much high er without the insurance and the high costs of inputs. There are also pockets of area left to be planted in the big production states. The weather was variable last week with periods of rain and very cool temperatures and then warm and dry conditions and hot and dry weather is expected this week after some rains in central areas on Monday. Many think the top end of the yield has been taken off the Corn crop due to the delayed planting but others look at the crop condition rating and expect improved yields. It already thinks there is reduced planted area because of the March planting intentions reports from USDA and the bad planting weather.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 756, 736, and 726 July, and resistance is at 783, 787, and 797 July. Trends in Oats are mixed Support is at 645, 632, and 625 July, and resistance is at 677, 695, and 708 July.

SOYBEANS
General Comments: Soybeans and Soybean Oil were lower on lower on weakness in petroleum markets while Soybeans were lower on ideas of increased farm selling as the US cash market runs low on Soybeans and on renewed Chinese lockdowns. Soybean Meal was higher. It was a consolidation trade yesterday.. There is less Chinese demand for Soy products due to the lockdowns there and China is starting to renew the lockdowns now as Covid cases have risen in number. China has been a major buyer of US Soybeans this year after a very slow start due to the problems in South America. They are buying for this year and already have booked a large amount of new crop Soybeans to cover future needs. Most of the current buying is for next year.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1674, 1665, and 1645 July, and resistance is at 1702, 1729, and 1743 July. Trends in Soybean Meal are mixed to down with objectives of 394.00, 390.00, and 386.00 July. Support is at 408.00, 404.00, and 395.00 July, and resistance is at 420.00 425.00, and 432.00 July. Trends in Soybean Oil are mixed to down with objectives of 7650, 7500, and 7380 July. Support is at 7650, 7280, and 7000 July, with resistance at 7910, 8050, and 8150 July.

CANOLA AND PALM OIL
General Comments: Palm Oil closed lower today despite ideas of less Malaysian production due to worker shortages from Covid and on the potential for strong exports for the month from Malaysia. The exports reports from the private sources yesterday showed weaker demand. The Indonesian government is now imposing a revised tax scheme on exporters to increase export sales. Some analysts think Palm Oil is topping out anyway due to reduced demand ideas. Hopes for better demand from India keep the market supported, but Chinese demand could be less. A new Covid outbreak is reported in China and cities and infrastructure has been shut down, including some airports and water ports. The economy could slow down and affect demand. Production from Malaysia is expected to increase as well as the Covid lockdowns finally go away and as the weather is good for production. Canola was lower along with other vegetable oilseed markets. The crops are going in the ground and the growing conditions are much improved. It is reported to be very dry and has been cold for planting but better planting weather is coming now as it is now much warmer. There are ideas of reduced Sunflower export potential from Russia and Ukraine. The market is worried about South American production as well. Canada produced a very short crop of Canola last year so supplies are tight.
Overnight News:
Chart Analysis: Trends in Canola are mixed to down with objectives of 1075.00 and 980.00 July. Support is at 1073.00, 1063.00, and 1054.00 July, with resistance at 1102.00, 1110.00, and 1128.00 July. Trends in Palm Oil are down with no objectives. Support is at 5520, 5420, and 5360 September, with resistance at 5760, 5830, and 5960 September.