Grains Report - Tuesday, June 2

WHEAT:
General Comments: Wheat markets finished lower as the weather seemed to improve in /Russia and cause Black Sea prices to move lower. It was a week of mixed weather news as Russia got good rains in just about all areas but parts of Europe and the western Great Plains of the US stayed dry. The weather is also good in Australia and has been good for planting in Argentina although Argentina has also been drier than normal. Frequent showers are being reported in most of Australia. The big weather feature is the dry weather in Europe and the US and this dry weather has been supporting world prices and futures price action. Competition for sales is expected to be tough even with less in the US and Europe as Australia is coming back after years of drought and as Russia has better weather and improved production prospects. The harvest, small or big, is coming and prices usually start to move lower soon and remain down through the harvest. Any rally at this time might not go much farther.
Overnight News: The southern Great Plains should get dry conditions. Temperatures should be near normal. Northern areas should see scattered showers. Temperatures will average near to below normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average below normal. Egypt bought 120,000 tons of Ukrainian Wheat.
Chart Analysis: Trends in Chicago are mixed to up with no objectives. Support is at 512, 501, and 496 July, with resistance at 528, 535, and 540 July. Trends in Kansas City are mixed to up with objectives of 476 and 498 July. Support is at 457, 452, and 441 July, with resistance at 473, 477, and 486 July. Trends in Minneapolis are mixed to up with objectives of 536, 545, and 587 July. Support is at 514, 510, and 504 July, and resistance is at 526, 534, and 538 July.

RICE:
General Comments: Rice was a little higher in new crop months and much higher in old crop July. The funds are buying the old crop futures on ideas of supply tightness. The combination of good export buying in general and the buying inside the US due to the Coronavirus has made the market short Rice. There are ideas that the mills are well covered into new crop, but little Rice is available from producers. Most of the unsold Rice is in Arkansas. The crops are in very good condition in the south and near the Gulf Coast but planting has been problematic in parts of Mississippi, Arkansas, and Missouri. However, USDA data shows that these crops are getting planted and are thriving. Ideas are that the long grain will get planted and producers will not plant medium grain if some prevent planting is needed. There are still ideas that the US will have a much bigger crop to harvest this Fall. Meanwhile, July appears destined to test the highs made by the May contract.
Overnight News: The Delta should get scattered showers. Temperatures should be generally above normal.
Chart Analysis: Trends are up with objectives of 1863 July. Support is at 1731, 1692, and 1654 July, with resistance at 1816, 1832, and 1844 July.

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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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