Grains Report - Thursday, June 8

General Comments: Wheat markets were lower on poor demand ideas for US Wheat as the HRW harvest expands. There is a lot of talk that Russia continues to offer a lot of Wheat into the world market at very cheap prices to help keep demand for American Wheat very low. The weather is still in focus here and around the world. Scattered showers are being reported in southern areas. Planting of Spring Wheat has been delayed due to reports some rain now in many of these areas so conditions are improving but might cause a few delays. Dry conditions are a developing problem in Russia, and especially in the Spring Wheat areas there. Ideas that big Russian offers and cheaper Russian prices would be a feature for a while in the world market was the driving force for the weaker prices, but this could soon change if the Spring Wheat production is not good. Ideas are that both Australia and Russia are harvesting record to near record Winter Wheat crops this year.
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 mixed. Support is at 614, 595, and 573 July, with resistance at 637, 641, and 648 July. Trends in Kansas City are mixed. Support is at 786, 762, and 756 July, with resistance at 811, 834, and 847 July. Trends in Minneapolis are mixed. Support is at 776, 769, and 762 July, and resistance is at 806, 821, and 838 July.

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General Comments: Rice closed higher again yesterday, with July futures leading the way up as an apparent squeeze is under way for that month with deliveries coming at the end of the month. The weather is still good for crop development. Harm could come if a drought develops. It is expected to be hot and dry this week but there is rain in the longer range forecasts. Old crop offers still seem hard to find right now, but demand has been a problem all year. Export demand has been uneven. Mills are milling for the domestic market in Arkansas and are bidding for some Rice, but at least some mills say they now have enough bought to last until the harvest of the next crop.
Overnight News: The Delta should get scattered showers. Temperatures should be near to above normal.
Chart Analysis: Trends are up with objectives of 1881 and 1922 July. Support is at 1792, 1778, and 1731 July and resistance is at 1846, 1859, and 1861 July.

General Comments: Corn closed slightly lower and Oats were a little higher yesterday as Corn traders discounted the weather and concentrated non demand news and the potential for ending stocks increases in the next round of WASDE reports to be released on Friday. Reports of dry initial development conditions were important as dry and hot weather is in the forecast for the coming week. However, some forecasters are calling for a pattern shift to cooler and wetter conditions starting this weekend. Corn is rolling leaves in southern Midwest areas but most of the Corn should be ok despite the warm and dry weather seen now. Corn is still finding some support from little US producer selling interest.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 595, 581, and 579 July, and resistance is at 614, 616, and 624 July. Trends in Oats are mixed. Support is at 334, 326, and 322 July, and resistance is at 347, 352 and 358 July.

General Comments: Soybeans closed higher yesterday on reports of strong domestic demand and interior basis levels. Planting weather remains very good with little if any precipitation in the forecast for the next week. Planting will be complete by then and then the market will worry about hot and dry weather for the Midwest. It is expected to be hot and dry this week, but the Soybeans production can take those conditions for now. Some rain is in the forecast starting this weekend and some forecasters suggest that a pattern shift for the climate is coming at that time to cooler and wetter conditions. 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. Argentina has been forced to import from Brazil to keeps its crushing facilities operating.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed to up with objectives of 1366 July. Support is at 1340, 1333, and 1305 July, and resistance is at 1384, 1389, and 1397 July. Trends in Soybean Meal are mixed. Support is at 394.00, 386.00, and 382.00 July, and resistance is at 402.00, 409.00, and 416.00 July. Trends in Soybean Oil are up with objectives of 6240 and 5380 July. Support is at 4970, 4870, and 4800 July, with resistance at 5240, 5350, and 5520 July.

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