Grains Report - Tuesday, July 7

General Comments: Corn was a little higher in reaction to forecasts for hot and dry weather for the Midwest. Futures markets have had hot and dry weather in much of the Midwest this week to support prices, and the weather market is coming as there are some forecasts for hot and dry weather for the next week or two. The ability of futures to hold rallies will depend on how much heat and for how long it stays dry in the Midwest. There have also been problems with demand. Meats processors are back and are aiming to restore 80% to 85% of capacity kill rates in their plants. The backlog of Cattle and Hogs will slowly disappear under this scenario and meats wholesale and retail prices are falling. Ethanol demand is also improving as lockdown orders are lifter in most states and in Europe. Demand for gasoline and ethanol has gotten a little stronger and should continue to improve over time.
Overnight News:
Chart Analysis: Trends in Corn are mixed to up with objectives of 355 September. Support is at 339, 334, and 332 September, and resistance is at 354, 356, and 361 September. Trends in Oats are down with objectives of 278 and 266 September. Support is at 283, 279, and 273 September, and resistance is at 292, 298, and 301 September.

General Comments: Soybeans were higher on more Chinese demand and on the hot and dry weather now seen in the US Midwest. China has become a much more active buyer of Soybeans here in the US and has promised to ramp up purchases in order to comply with commitments it made under the Phase One trade deal. China has remained a very active buyer in South America even as it has increased Soybeans buying here in the US, so the overall amount taken from the US might not match the hopes of the trade. Brazil prices have been creeping higher for the rest of the world as it starts to run out of Soybeans to export, so China and the rest of the world will look to the US and Argentina for additional supplies. The US weather is considered good for growing Soybeans at this time but forecasts call for hot and dry weather in the next couple of weeks.
Overnight News:
Chart Analysis: Trends in Soybeans are up with no objectives. Support is at 896, 880, and 872 August, and resistance is at 913, 915, and 921 August. Trends in Soybean Meal are up with objectives of 301.00 August. Support is at 295.00, 292.00, and 290.00 August, and resistance is at 300.00, 305.00, and 310.00 August. Trends in Soybean Oil are mixed. Support is at 2790, 2710, and 2680 August, with resistance at 2890, 2910, and 2980 August.

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Disclaimer: Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also ...

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