Grains Report - Tuesday, Nov. 28

WHEAT
General Comments: Wheat markets were lower again yesterday on the poor demand potential for US Wheat and on fund selling due to chart patterns. The weekly export sales report was bad once again last week and reports indicate that Ukraine is using Black Sea ports to load export Wheat. Russia is still exporting and offering Wheat into the world market and is reporting that the crop is larger than originally thought. Ukraine and the EU countries are offering as well and are getting new business. Demand has been poor for US Wheat as Russia production looks strong, but exports are expected to increase later in the marketing year. Weather forecasts call for drier weather for Australia, with production losses now expected. There are reports of some showers in both countries to raise production estimates slightly but not enough to bring production close to average. Argentine conditions are reported to be good after a very dry start but showers and rains in recent weeks. It has been too wet in southern Brazil and much of the Wheat grown there is expected to be feed grade instead of milling grade.
Overnight News: The southern Great Plains should get isolated showers. Temperatures should be below normal. Northern areas should see isolated showers. Temperatures will average below normal. The Canadian Prairies should see scattered showers. Temperatures should average below normal.
Chart Analysis: Trends in Chicago are down with objectives of 504 December. Support is at 524, 518, and 512 December, with resistance at 573, 585, and 590 December. Trends in Kansas City are down with objectives of 570 and 414 December. Support is at 688, 582, and 576 December, with resistance at 600, 632, and 649 December. Trends in Minneapolis are mixed to down with objectives of 708 and 691 December . Support is at 680, 674, and 668 December, and resistance is at 706, 731, and 739 December.

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RICE
General Comments: Rice closed lower and fell back into the trading range set last week. The weekly charts show that a big gap was closed with the price action last week. Futures had been consolidating the gains made the previously in early week trading, then exploded higher once again. Demand reports have been strong for the last couple of weeks and have featured traditional buyers in Latin America and Asia ad some nontraditional buyers as well. The weekly export sales report showed very strong demand from Latin America. The daily and weekly chart trends are still up.
Overnight News: The Delta should get isolated showers, mostly near the Gulf coast. Temperatures should be above normal.
Chart Analysis: Trends are mixed. Support is at 1707, 1684, and 1663 January and resistance is at 1767, 1772, and 1784 January.

CORN AND OATS
General Comments: Corn closed lower yesterday on demand concerns. Ideas of weak demand are keeping prices low over all, but the weekly export sales reports have shown good demand for the last several weeks. Oats closed a little higher in consolidation trading and trends are up in this market. It is still hot and dry in central and northern Brazil and in Argentina although some beneficial rains have been reported in Argentina and a few showers are reported in central and northern Brazil. Southern Brazil is much too wet. There was some beneficial rains reported in central and northern areas last week and a few more showers are possible this week.
Overnight News:
Chart Analysis: Trends in Corn are down with objectives of 447 and 431 December. Support is at 452, 446, and 440 December, and resistance is at 480, 506, and 507 December. Trends in Oats are mixed. Support is at 364, 353, and 348 December, and resistance is at 380, 389, and 394 December.

SOYBEANS
General Comments: Soybeans closed mixed and Soybean Oil Closed lower and Soybean Meal closed higher yesterday as drought continued in central and northern Brazil and too much rain was reported for southern Brazil. There are some forecasts for scattered showers and rains this week in central and northern Brazil and still very wet conditions in the south. Soybean Oil was lower on weakness in /Crude Oil futures that could hurt demand for biofuels. Soybeans and Soybean Oil appears to be starting a new leg down on the charts. The weekly export sales report for Soybeans was not strong after the record sales report the previous week but sales to China continue. The trade remains concerned about the weather forecasts for South America. Brazil remains mostly hot and dry in northern areas and too wet in southern areas. Argentina crops are reported o be in good condition with enough moisture. These weather trends are expected to continue after next week.
Overnight News: Unknown destinations bought 123,300 tons of US Soybeans.
Chart Analysis: Trends in Soybeans are mixed to down with objectives of 1309, 1294, and 1261 January. Support is at 1327, 1298, and 1292 January, and resistance is at 1365, 1369, and 1394 January. Trends in Soybean Meal are mixed. Support is at 451.00, 440.00, and 439.00 December, and resistance is at 467.00, 475.00, and 479.00 December. Trends in Soybean Oil are mixed to down with objectives of 4970, 4840 and 4680 December. Support is at 4980, 4900, and 4830 December, with resistance at 5360, 5430, and 5510 December.

CANOLA AND PALM OIL
General Comments: Palm Oil was lower last week on ideas of weaker demand for Palm Oil as the private sources reported weaker demand for the month so far. It was lower today on demand concerns. Production was high in the MPOB reports released over a week ago but this was expected. The strong demand was not expected and came from China and other buyers. Trends are turning down on the daily charts but are sideways on the weekly charts. Canola closed a little lower last week on the weather in Brazil. Current forecasts call for very wet weather in southern Brazil and slightly wetter weather in central and northern areas this week. The Canola crop is harvested and it is in bins, so it will take some price movement to get new farm sales. Trends are mixed on the daily charts in this market.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 691.00, 684.00, and 672.00 January, with resistance at 711.00, 725.00, and 733.00 January. Trends in Palm Oil are mixed to down with objectives of 3810 and 3680 February. Support is at 3880, 3840, and 3800 February, with resistance at 3950, 4000, and 4040 February.


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Grains Report - Tuesday, Nov. 21
Softs Report - Monday, Nov. 20

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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