Grains Report - Tuesday, Sept. 22

WHEAT
General Comments: Winter Wheat markets were sharply lower in part on the rally in the US Dollar. The Dollar was very strong and has started to break out to the upside. Overseas weather remains variable for Wheat production. Western Europe is likely to get some rains in the short term, but eastern Europe and southern Russia could stay dry. These areas are trying to plant the next Winter Wheat crop but the dry weather and the dry soils are keeping farmers out of the fields. Less production is likely in Argentina due to drought. About half of Argentine growing areas are affected. The next crop is being planted now in northern parts of the world. Conditions are improved in the US after some rains fell in the Great Plains but the southern Great Plains remains mostly hot and dry. The Midwest has had god rains although some areas in the southern Midwest have not gotten much rain recently.
Overnight News: The southern Great Plains should get scattered showers and some big rains along the Gulf coast from the hurricane. Temperatures should be near to below normal. Northern areas should see isolated showers. Temperatures will average near to below normal. The Canadian Prairies should see isolated showers. Temperatures should average near to below normal.
Chart Analysis: Trends in Chicago are up with no objectives. Support is at 547, 543, and 532 December, with resistance at 557, 568, and 578 December. Trends in Kansas City are mixed Support is at 476, 470, and 467 December, with resistance at 501, 504, and 512 December. Trends in Minneapolis are mixed. Support is at 532, 523, and 519 December, and resistance is at 556, 567, and 569 December.

RICE
General Comments: Rice was lower on the strong US Dollar ad the fear of lost demand. Reports indicate that export and domestic demand has not been real strong to start out the new crop year although the export sales report was great last week. Exporters and domestic mills are thought to be holding back on purchases for as long as possible due to the current relatively high prices. The rebound in demand supported futures and pushed the market to new highs for the move late in the week. Futures gave back those gains yesterday. The harvest has been active in most states with good field yields reported. Quality is said to be very good, especially in Arkansas. Milling yields are higher and appearance is very good with minimal chalk or peck showing.
Overnight News: The Delta should get scattered showers with heavy rains in the south from the hurricane. Temperatures should be near to above normal.
Chart Analysis: Trends are mixed. Support is at 1210, 1204, and 1192 November, with resistance at 1237, 1244, and 1257 November.

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