Grains Report - Tuesday, Aug. 11

WHEAT
General Comments: Winter Wheat markets were lower on reports of weak world demand and improving production potential from Russia. Russian Wheat is now hitting the domestic market and prices are lower. Production estimates have improved as the harvest has moved into areas that enjoyed better weather. Spring Wheat was developing under good growing conditions in both the US and Canada. Yield reports from the central and southern Great Plains have been variable, but generally a little better than expected. Soft Red Winter yields are high. The Winter Wheat markets are in down trends on the weekly charts. It is still dry in France and Russia and now Spring Wheat areas of Russia are being affected. Russian Winter Wheat yields have improved over time as harvesters move into areas that had better growing conditions. Australia remains in good condition and is getting beneficial rains in the east. The west is too dry. About half of the Argentine Wheat belt is too dry.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be above normal. Northern areas should see scattered showers. Temperatures will average near to above normal. The Canadian Prairies should see scattered showers. Temperatures should average near to above normal.
Chart Analysis: Trends in Chicago are down with objectives of 411 September. Support is at 489, 482, and 471 September, with resistance at 500, 508, and 515 September. Trends in Kansas City are down with no objectives. Support is at 410, 404, and 400 September, with resistance at 424, 431, and 438 September. Trends in Minneapolis are down with objectives of 478 and 460 September. Support is at 491, 486, and 480 September, and resistance is at 500, 506, and 512 September.

RICE
General Comments: Rice was higher on Monday on speculative buying in front of the USDA reports that will be released on Wednesday morning. New crop prospects appear solid for increased production in the coming year. The area is larger and the growing conditions are mostly good. The combination of good export buying in general and the buying inside the US due to the Coronavirus has made the market short old crop Rice. There are ideas that the mills are well covered into new crop, but little Rice is available from producers. The crops are called in good condition in Mississippi, Arkansas, and Missouri. Texas and southern Louisiana field yield reports are strong. Export demand for the new crop Rice has been slow to develop as buyers wait for lower prices.
Overnight News: The Delta should get scattered showers. Temperatures should be near to below normal.
Chart Analysis: Trends are mixed. Support is at 1146, 1135, and 1120 September, with resistance at 1176, 1183, and 1191 September.

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