Grains Report - Tuesday, Aug. 17

CORN AND OATS
General Comments: Corn was lower yesterday on what appeared to be some speculative selling in light volume trading. Trends are up on the charts. The weather remains a feature of the trade. Some forecasts call for improved weather, especially in the eastern belt. The growing conditions in the US are highly variable and not likely to produce trend line or record yields. It is still too dry in many areas of the west and drier weather is expected in the east. It should stay hot in the west and cool in the east. Ideas are that Brazil Corn production could be less than 85 million tons so reduced production estimates are expected in coming reports. Oats were higher on ideas of small production. The uncertain weather in the northern Great Plains and Canadian Prairies remains the best support for the market. Canadian Oats areas and those in the northern Great Plains remain too hot and dry. Some rain is now in the forecast but is too little and too late to materially help crops. The Pro Farmer crop tour found good production potential in Ohio and eastern Indiana and mixed but generally better than expected production potential in South Dakota and part of Nebraska.
Overnight News:
Chart Analysis: Trends in Corn are up with objectives of 594, 607, and 615 September. Support is at 559, 550, and 544 September, and resistance is at 575, 579, and 589 September. Trends in Oats are up with objectives of 509 September. Support is at 494, 475, and 467 September, and resistance is at 500, 506, and 512 September.

SOYBEANS
General Comments: Soybeans and Soybean Meal were higher in response to positive demand news, but Soybean Oil was lower along with weakness in Crude Oil futures. Chart trends remain mostly sideways in all three markets. US weather is still a feature in the market as it remains hot in the west and is dry in just about all areas now. Eastern Midwest areas should be cooler and parts of central Illinois turned too wet again after some big rains on Thursday night. Soybeans conditions in central production area started the year too wet and have suffered. Minnesota and nod the Dakotas are hot and dry. The Pro Farmer crop tour found good production potential in Ohio and eastern Indiana and mixed but generally better than expected production potential in South Dakota and part of Nebraska.
Overnight News: China bought 198,000 tons of US Soybeans and unknown destinations bought 132,000 tons of US Soybeans.
Chart Analysis: Trends in Soybeans are mixed to up with objectives of 1428 and 1483 September. Support is at 1355, 1335, and 12330 September, and resistance is at 1388, 1394, and 1431 September. Trends in Soybean Meal are mixed. Support is at 352.00, 347.00, and 342.00 September, and resistance is at 364.00, 365.00, and 371.00 September. Trends in Soybean Oil mixed. Support is at 6200, 6100, and 6010 September, with resistance at 6440, 6520, and 6650 September.

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