Grains Report - Monday, May 6

General Comments: Wheat was higher last week to close with mixed trends in Winter Wheat markets. Trends are up in Minneapolis. The weather is still a key, with extreme dryness reported in Russia and parts of the US and too wet conditions reported in Europe. The weekly export sales report showed poor sales once again and sales are not likely to improve anytime soon with the Dollar strength. Big world supplies and low world prices are still around. Export sales remain weak on competition from Russia, Ukraine, and the EU as those countries look to export a lot of Wheat in the coming period. Black Sea offers are still plentiful, but Russia has been bombing Ukraine again and shipments might be hurt from that origin.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be above normal. Northern areas should see mostly dry conditions. Temperatures will average 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 614, 596, and 593 July, with resistance at 637, 638, and 655 July. Trends in Kansas City are mixed. Support is at 637, 625, and 613 July, with resistance at 663, 669, and 675 July. Trends in Minneapolis are up with objectives of 729 and 747 July. Support is at 705, 697, and 686 July, and resistance is at 732, 738, and 746 July.

selective focus photo of plant

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General Comments: Rice closed slightly lower last week after a week of big highs and lows and wide ranges of trading. Support comes from adverse weather in South American growing areas while new selling is noted from the potential for a big crop in the US. The big US crops are now in doubt from reports of extreme rains in southern growing areas and especially near Houston. Supply tightness is expected to give way to increased production this year and greatly increased supplies this Fall. These ideas are reflected in the prices seen in the cold crop and the new crop. The market noted good planting and emergence progress in the weekly USDA reports.
Overnight News:
Chart Analysis: Trends are down with no objectives. Support is at 1827, 1785, and 1750 July and resistance is at 1915, 1955, and 1972 July.

General Comments: Corn and Oats closed higher last week on reports of adverse production conditions in South America. The Argentine crop has been hit by stunting disease that robs yields and the Brazil Winter crop is suffering from hot and dry weather. Demand has been the driving force behind the rally but now South American weather is the driving force. Increased demand was noted in most domestic categories along with rising basis levels, and export demand has been strong. Ethanol demand has turned less due to weaker petroleum prices seen lately. There is very dry weather for the Winter crops in central and northern Brazil
Overnight News:
Chart Analysis: Trends in Corn are up with objectives of 470 July. Support is at 460, 454, and 450 July, and resistance is at 470, 477, and 483 July. Trends in Oats are up with no objectives. Support is at 378, 362, and 356 July, and resistance is at 390, 396, and 402 July.

General Comments: Soybeans closed higher and the products closed mixed last week, with Soybean Meal higher and Soybean Oil lower. Support for Soybeans came from reports of excessive rains falling on unharvested crops in southern Brazil. Rains up to 400 mm were reported by newswires. Ideas of less bio fuels demand have hurt Soybean Oil prices. Some selling from Brazil and Argentina was noted on the early rally attempt last week. Reports of great export demand in Brazil provide some support. Reports indicate that China has been a very active buyer of Brazil Soybeans this season. Ideas that South American production is taking demand from the US have pressured futures lower. Domestic demand has been strong in the US but has suffered as crushers were crushing for oil. Oil demand has suffered as cheaper alternatives for feedstocks hit the bio fuels market. Funds remain large shorts in the market.
Overnight News: Unknown destinations bought 122,000 tons of US Soybeans.
Chart Analysis: Trends in Soybeans are mixed to up with objectives of 1248 July. Support is at 1192, 1181, and 1167 July, and resistance is at 1216, 1231, and 1240 July. Trends in Soybean Meal are up with no objectives. Support is at 361.00, 350.00, and 347.00 July, and resistance is at 376.00, 382.00, and 385.00 July. Trends in Soybean Oil are mixed. Support is at 4260, 4200, and 4140 July, with resistance at 4410, 4460, and 4530 July.

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