Grains Report - Thursday, Nov. 10

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WHEAT
General Comments: Wheat markets were lower yesterday in part in response to the USDA reports but mostly on ideas that a new Russia-Ukraine export agreement will be reached and exports from both countries will be likely and will likely increase in volume The US Dollar was sharply higher yesterday as well and this hurt demand ideas. A cut in demand and an increase in ending stocks was seen but the increase in ending stocks was only 10 million bushels and smaller than expected. The reduced pace of export sales for the US were bearish. The demand for US Wheat still needs to show up and right now there is no demand news to help support futures.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should average above normal. Northern areas should see mostly dry conditions . Temperatures will average above normal. The Canadian Prairies should see scattered showers. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are down with objectives of 798 and 762 December. Support is at 800, 791, and 783 December, with resistance at 834, 864, and 868 December. Trends in Kansas City are mixed to down with objectives of 882 December. Support is at 925, 915, and 896 December, with resistance at 943, 958, and 972 December. Trends in Minneapolis are mixed to down with objectives of 929 December. Support is at 933, 928, and 907 December, and resistance is at 953, 961, and 973 December.

RICE
General Comments: Rice was higher and closed at new highs for the move. USDA cut export demand by 4.0 million cwt but increased domestic demand by 1.0 million cwt for an overall increase of 2.0 million cwt. The supply side showed reduced yields and production. Some new selling might be found soon as futures and basis are now getting close to being profitable for producers to sell. Shipping delays caused by the low river levels on the Mississippi and as the harvest pressure continued. Some rain has fallen in the basin in the last week so barge traffic on the Mississippi might get better. Demand in general has been slow for Rice for both exports and domestic uses but export demand was improved last week. The weekly charts show that trends are up.
Overnight News: The Delta should get scattered showers. Temperatures should be near to above normal.
Chart Analysis: Trends are up with objectives of 1815 and 1850 January. Support is at 1770, 1745, and 1732 November and resistance is at 1805, 1855, and 1867 November.

CORN AND OATS
General Comments: Corn closed lower yesterday and Oats were higher on selling from the lack of export demand. USDA increased yields and production a little and cut demand a little to produce only a minor increase in ending stocks estimates. Domestic demand was increased while export demand was cut.. Weak demand for US Corn remains a big problem for the market as USDA is expected to cut demand and raise ending stocks in its WASDE reports.. The Mississippi river is low due to the dry conditions seen in most of the central parts of the US . Barge traffic has been reduced. The cash market has been strong at the Gulf but weak in the Midwest river areas due to the low river levels. There are increasing concerns about demand with the Chinese economic problems caused by the lockdowns creating the possibility of less demand as South America has much better crops this year to compete with the US for sales. Export demand in general has been slow so far this year and was slow in the weekly export sales report.
Overnight News: Mexico bought 209,931 tons of US Corn.
Chart Analysis: Trends in Corn are down with objectives of 649 and 623 December. Support is at 658, 654, and 632 December, and resistance is at 674, 679, and 686 December. Trends in Oats are mixed. Support is at 376, 368, and 347 December, and resistance is at 388, 395, and 400 December.

SOYBEANS
General Comments: Soybeans and Soybean Oil were higher yesterday. Soybean Meal was lower. USDA increased yields in its reports yesterday and left demand alone. Ending stocks were higher than the trade anticipated. Export demand for the US is heating up and the new demand could not come at a better time.. Domestic demand should be increasing for Soybeans as the crush spreads got richer and provided crushers with a big profit margin for their crushing Export demand has suffered due to the lack of good buying by China, but China has been a very active buyer this week. Ideas are that Brazil is off to a very good start. The Mississippi river is low due to the dry conditions seen in most of the central parts of the US but some rain fell in the basin last week and river levels should work a little higher. Barge traffic has been reduced but could increase with the improved river flows. The trade is worried about demand due to a lack of Chinese interest caused by the Covid lockdowns there and in part by the stronger US Dollar. Brazil is still offering its old crop Soybeans, and South America as a whole is expected to produce a very big crop later this year for harvest next Spring as the weather outlook is positive for crops. However, a third year of La Nina as predicted by meteorologists could cut the production potential. US production ideas remain strong after mostly good weather in August. There are still Chinese lockdowns and there are fears that China has been importing less as a result. However, Chinese data showed huge imports from all sources in September. President Xi has been elected to a third term in China and has stocked the ruling body with his associates so there are fears that nothing will change soon there.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1428, 1423, and 1409 January, and resistance is at 1469, 1485, and 1493 January. Trends in Soybean Meal are mixed. Support is at 414.00, 407.00, and 404.00 December, and resistance is at 425.00 431.00, and 441.00 December. Trends in Soybean Oil are mixed to up with objectives of 8260 December. Support is at 7440, 7360, and 7260 December, with resistance at 7600, 7710, and 7820 December.

CANOLA AND PALM OIL
General Comments: Palm Oil futures were lower today on the MPOB data that showed the largest stocks in three yars. Ideas are that supply and production will be strong, but demand ideas are now weakening and the market will continue to look to the private data for clues on demand and the direction of the futures market. Demand reports for the current month were stronger yesterday. Canola was higher yesterday along with the price action in Chicago Soybean Oil and a weaker Canadian Dollar. The Canola harvest is about over. Reports indicate that domestic demand has been strong due to favorable crush margins. The Canola growing conditions are much improved and production estimates are higher for the year.
Overnight News:
Chart Analysis: Trends in Canola are mixed . Support is at 882.00, 872.00, and 858.00 January, with resistance at 906.00, 912.00, and 916.00 January. Trends in Palm Oil are mixed. Support is at 4200, 3970, and 3890 January, with resistance at 4530, 4850, and 5030 January.


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Softs Report - Wednesday, Nov. 9
Grains Report - Tuesday, Nov. 8
Softs Report - Monday, Nov. 7

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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