Grains Report - Wednesday, Dec. 23

WHEAT
General Comments: Winter Wheat markets were higher and held higher prices all day. Minneapolis Spring Wheat contracts also closed a little higher for another day. The Russian Wheat export tax is being passed onto farmers by the exporters and farmers are not selling. They apparently have a lot of money right now and do not need to sell. US prices moved very close to international prices and US markets searched for new demand. Export demand has started to improve with the close price relationships. World prices have held steady or worked a little higher even with additional supplies available to the market as Russian prices remain elevated. Australian supplies have increased as its harvest is moving forward. US weather is mixed with still dry conditions in the western Great Plains even though a few areas got some snow. Some precipitation was reported in the eastern Great Plains and in parts of the Midwest. Parts of southern Russia remain dry.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be above normal. Northern areas should see mostly dry conditions after scattered showers today. Temperatures will be mostly above normal. The Canadian Prairies should see scattered showers today, then mostly dry conditions. Temperatures should average below normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 603, 597, and 594 March, with resistance at 620, 623, and 629 March. Trends in Kansas City are mixed to up with objectives of 594 and 613 March. Support is at 563, 560, and 556 March, with resistance at 586, 588, and 597 March. Trends in Minneapolis are mixed to up with objectives of 588, 596, and 608 March. Support is at 562, 556, and 553 March, and resistance is at 574, 581, and 589 March.

RICE
General Comments: Rice was slightly higher in quiet trading as trading reflected the lack of activity in the domestic cash market. Trading volumes have been less for the last couple of weeks. The cash market is slow and the lack of business is reflected in futures volumes traded. Reports indicate that domestic demand has been poor to average with better consumer demand more than offset by much less demand from schools and other institutions.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be near to above normal.
Chart Analysis: Trends are mixed. Support is at 1230, 1227, and 1220 January, with resistance at 1253, 1267, and 1270 January.

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