Image Source: Unsplash

WHEAT
General Comments: Wheat markets were higher in all three markets last week on uncertain Midwest and world weather and a sharply lower US Dollar. Rains are reported from the southern Great Plains to the Southeast, but the Midwest has for the most part missed any rain chances and the forecast looks dry for the next week or two. In Russia, the government is setting a floor price at about $240.00 per ton in an effort to make more money. The weather is still in focus here and around the world. Scattered showers are being reported in southern areas. Planting of Spring Wheat had been delayed due to reports some rain now in many of these areas so conditions are improving and producers are caught up with planting progress now. Canada has been dry. Dry conditions are a problem in Russia, and especially in the Spring Wheat areas there. Australian production ideas have been fading as El Nino hits the country.
Overnight News: The southern Great Plains should get isolated showers. Temperatures should be above normal. Northern areas should see isolated showers. Temperatures will average above normal. The Canadian Prairies should see scattered showers. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are up with objectives of 705 and 715 July. Support is at 669, 664, and 648 July, with resistance at 700, 717, and 732 July. Trends in Kansas City are up with no objectives. Support is at 830, 803, and 793 July, with resistance at 864, 873, and 903 July. Trends in Minneapolis are up with objectives of 865, 910 and 913 July. Support is at 838, 829, and 807 July, and resistance is at 864, 873, and 902 July.

RICE
General Comments: Rice closed higher Friday in consolidation trading. New crop months were also higher, but growing conditions are good and the overall new crop price strength has not been good so far. Futures were much lower for the week. The weather is still good for crop development. Old crop offers still seem hard to find right now, but demand has been a problem all year. Export demand has been uneven. Mills are milling for the domestic market in Arkansas and are bidding for some Rice, but at least some mills say they now have enough bought to last until the harvest of the next crop.
Overnight News: The Delta should get scattered showers. Temperatures should be near to above normal.
Chart Analysis: Trends are down with no objectives. Support is at 1750, 1731, and 1684 July and resistance is at 1832, 1847, and 1871 July.

CORN AND OATS
General Comments: Corn and Oats were higher last week as Corn traders reacted to the weather and the lack of demand news. Demand for US Corn in the world market has been very low, but the US Dollar was much lower last week so demand ideas might soon get a boost. Reports of dry initial development conditions were important. Chicago got up to 1.0 inches of rain early last week and then was mostly dry. Dry and warmer conditions are in the forecast for next week. Ideas are that the top end of the yield potential is lost but that no serious damage has been done yet. Corn is rolling leaves in central and southern Midwest areas but could be in better condition to the north. Corn is still finding some support from little US producer selling interest.
Overnight News:
Chart Analysis: Trends in Corn are up with objectives of 647 July. Support is at 624, 619, and 609 July, and resistance is at 647, 657, and 661 July. Trends in Oats are up with no objectives. Support is at 386, 373, and 367 July, and resistance is at 3412, 3418 and 424 July.

SOYBEANS
General Comments: Soybeans and the products closed higher last week in part on the weather and on reports of strong domestic demand and interior basis levels. The US Dollar was lower. Growing conditions feature cool but very dry weather. Some showers were reported in the Midwest over last weekend and early last week. Chicago got less than 1.0 inches of rain and has been mostly dry since then as it was for weeks before the rains hit. Warmer and dry conditions are forecast for the next week. Ideas are that the top end of the yield potential is gone, but sever damage has not been reported yet. Reports indicate that bio fuels demand for Soybean Oil is very strong and is pushing domestic demand for Soybeans. Brazil basis levels are still low and the US is being shut out of the market for most importers. Brazil is still selling a lot of Soybeans to China and other countries. Brazil has a very good crop, but the additional Soybeans grown in Brazil will be partially wiped out by the losses in Argentina. Argentina has been forced to import from Brazil to keeps its crushing facilities operating.
Overnight News:
Chart Analysis: Trends in Soybeans are up with objectives of 1471 and 1479 July. Support is at 1415, 1399, and 1380 July, and resistance is at 1482, 1501, and 1525 July. Trends in Soybean Meal are up with objectives of 450.00 July. Support is at 407.00, 404.00, and 396.00 July, and resistance is at 422.00, 435.00, and 437.00 July. Trends in Soybean Oil are up with no objectives. Support is at 5750, 5620, and 5580 July, with resistance at 6060, 6180, and 6330 July.

CANOLA AND PALM OIL
General Comments: Palm Oil was higher last week along with price action in Chicago. In Malaysia, May production was 28.6% more than April at 1.1517 million tons. Exports were all down and ending stocks were estimated at 1.597 million tons, down over 10% from last month. AmSpec said last week that Malaysian exports are down 26% so far this month. Ideas are that demand is generally weak, with China struggling to open its economy and India looking to Sunoil for imports at the expense of other vegetable oils. Canola was higher. Trends are turning up on the daily charts. Reports indicate that domestic demand has been strong due to favorable crush margins, but export demand is questioned, especially since the release of the weaker than expected Chinese economic data last week. Scattered showers and rains have been reported so planting and initial growth conditions are good.
Overnight News:
Chart Analysis: Trends in Canola are up with no objectives. Support is at 713.00, 701.00, and 690.00 July, with resistance at 763.00, 770.00, and 787.00 July. Trends in Palm Oil are up with no objectives. Support is at 3700, 3630, and 3440 September, with resistance at 3800, 3870, and 3950 September.

More By This Author:

Softs Report - Friday, June 16
Grains Report - Thursday, June 15
Softs Report - Tuesday, June 13