Grains Report - Thursday, Oct. 22

WHEAT
General Comments: Winter Wheat markets were higher aga.in yesterday. It is a weather market and the planting weather is dry in many northern hemisphere areas. Western Europe is likely to get some good rains this week, but southern Russia could stay mostly dry. Dry conditions are forecast for eastern Ukraine this week. Kazakhstan has been dry. These areas are trying to plant the next Winter Wheat crop but the dry weather and the dry soils are keeping farmers out of the fields. Farmers are not really selling much of the current crop due to fears about production of the next crop. Less production is likely in Argentina due to drought, but the rains are coming now. Western Australia has also been very dry and no beneficial rains are in the forecast except for the far south of the state. The western Great Plains remains mostly dry but will get scattered showers in the next week or so. The Midwest has had some rains but has been drier than normal. The forecasts call for good rains this week in SRW areas.
Overnight News: The southern Great Plains should get isolated to scattered showers. Temperatures should be below normal. Northern areas should see scattered showers. Temperatures will be below normal. The Canadian Prairies should see light snow. Temperatures should be below normal. South Korea bought 130,000 tons of White Wheat.
Chart Analysis: Trends in Chicago are up with objectives of 660 December. Support is at 617, 604, and 600 December, with resistance at 638, 644, and 650 December. Trends in Kansas City are up with objectives of 600 December. Support is at 565, 553, and 540 December, with resistance at 579, 582, and 585 December. Trends in Minneapolis are up with no objectives. Support is at 579, 570, and 560 December, and resistance is at 590, 593, and 596 December.

RICE
General Comments: Rice was a little lower and held the lows made yesterday. The overall price action is weak and the market needs more demand. Export demand dropped in a big way last week and domestic demand has been steady but not spectacular, The harvest has been active in northern states with good field yields reported. Southern Louisiana and Texas are done with the first crop harvest and are waiting for the second crop to mature. Producers had to endure Hurricane Delta in Louisiana, but the Rice apparently made it through with only minimal losses if any losses were seen at all. Quality is said to be very good, especially in Arkansas.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be below normal.
Chart Analysis: Trends are down with objectives of 1185 November. Support is at 1218, 1210, and 1204 November, with resistance at 1222, 1236, and 1241 November.

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