Grains Report - Tuesday, June 1

WHEAT
General Comments: Winter Wheat markets were lower on showers and rains seen in Winter Wheat production areas, but Minneapolis Spring Wheat was higher as a freeze hit production areas late last week and on forecasts from NWS calling for a warmer and drier than normal summer growing season. Showers and rains were seen in parts of Western Texas and in Oklahoma and also in the northern Great Plains. Kansas and the Canadian Prairies got some beneficial rain, but it also froze in parts of the Dakotas and into Canada late last week. Scattered showers are in the forecast in western Texas and rains are possible into Kansas. These rains should be very beneficial for planting and initial growth, and more is in the forecast. Wheat remains a weather market, but the demand side has been weak. Demand remains disappointing but the production might not be there for better demand in the coming year. Corn prices are high so demand for feed wheat could increase.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be near to above normal. Northern areas should see mostly dry conditions. Temperatures will be above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 658, 639, and 636 July, with resistance at 680, 693, and 707 July. Trends in Kansas City are mixed. Support is at 606, 588, and 584 July, with resistance at 629, 643, and 650 July. Trends in Minneapolis are up with objectives of 765 July. Support is at 710, 705, and 695 July, and resistance is at 736, 748, and 758 July.

assorted food in sacks

Image Source: Unsplash

RICE
General Comments: Rice prices were a little higher in slow trading on Friday and a little higher for the week, Old crop to new crop spreads were firm last week. Increased precipitation and warmer temperatures for US growing areas have kept the market under pressure in recent days. Rice areas have generally been wet. Louisiana and parts of Texas are saturated. Warm temperatures are finally spreading north into Arkansas and Missouri and the crop progress is improving. Texas and Louisiana are almost out of Rice, but there is Rice available in the other states, especially Arkansas. Milling interest in Rice is said to be slow.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be above normal.
Chart Analysis: Trends are mixed. Support is at 1311, 1309, and 1307 July, with resistance at 1338, 1347, and 1354 July.

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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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