Grains Report - Wednesday, Dec. 2

WHEAT
General Comments: Winter Wheat markets were lower on follow-through selling tied to news that the Russian government has proposed to increase the export quota at a time of high feed and food costs inside the country. Reports of very strong production in Australia were also negative for prices. Australia estimates its production above 31 million tons but traders think production could be over 34 million tons. Canada will announce its estimate later this week and a big production estimate is expected. World prices have held steady or worked a little higher even with additional supplies available to the market as Russian prices remain elevated. US weather is mixed with good conditions in the majority of the country but still dry conditions in the western Great Plains. Some precipitation was reported in the Great Plains in recent days, but it fell mostly in eastern areas and not in the west. Parts of eastern Ukraine and southern Russia are getting some showers too. These have been late to help much with establishment but will help with soil moisture into the Spring. Western Australia's conditions are good after some rains. The demand has held well and world prices remain high. The market in Russia has remained high on limited supply as farmer hold the Wheat back due to the drought.
Overnight News: The southern Great Plains should get dry weather except for some showers on Wednesday. Temperatures should be below normal. Northern areas should see mostly dry conditions. Temperatures will be near to above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are down with objectives of 565 and 531 March. Support is at 574, 568, and 558 March, with resistance at 590, 600, and 608 March. Trends in Kansas City are mixed to down with objectives of 514 and 474 March. Support is at 533, 528, and 524 March, with resistance at 550, 559, and 568 March. Trends in Minneapolis are down with objectives of 537 March. Support is at 546, 543, and 537 March, and resistance is at 560, 564, and 570 March.

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