Grains Report - Wednesday, Dec. 7

General Comments: Wheat markets were lower in all three markets for another day as demand concerns continue. The demand for US Wheat in international markets has been a disappointment all year and currently is hindered by low and aggressive offers from Russia. Ukraine is also looking for new business for its crops and Russia is aggressive in the world market as it looks for cash to fund the war. The daily charts for the Chicago markets show down trends and demand fundamentals remain bearish. Minneapolis trends are down. The demand for US Wheat still needs to show up and there is still no demand news to help support futures.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should average near to above normal. Northern areas should see isolated showers. Temperatures will average near to below normal. The Canadian Prairies should see scattered snow showers. Temperatures should average near to below normal.
Chart Analysis: Trends in Chicago are down with objectives of 720 March. Support is at 724, 718, and 712 March, with resistance at 760, 782, and 799 March. Trends in Kansas City are down with no objectives. Support is at 822, 812, and 806 March, with resistance at 860, 888, and 896 March. Trends in Minneapolis are down with no objectives. Support is at 888, 882, and 876 March, and resistance is at 915, 924, and 935 March.

variety of assorted-color beans

Image Source: Unsplash

General Comments: Rice was moderately lower yesterday on what appeared to be the second day of fund selling. The funds often take three days to take or close a position so one more day of aggressive selling is possible today or later this week. There is not much going on in this market right now and the sellers took advantage of the lack of buying to blast futures lower. Trends are turning down on the daily charts. Some new Rice producer selling might be found soon as futures and basis are now getting close to being profitable for producers to sell. Most Rice farmers were not paying much attention to the market as they are involved in other pursuits such as hunting. Demand in general has been slow to moderate for Rice for both exports and domestic uses.
Overnight News: The Delta should get scattered showers. Temperatures should be above normal.
Chart Analysis: Trends are down with objectives of 1624 January. Support is at 1671, 1645, and 1628 January and resistance is at 1707, 1728, and 1752 January.

General Comments: Corn and Oats closed lower again yesterday, with Corn hurt by a general lack of demand. Corn is still finding some support on a lack of farmer selling but the lack of demand has hurt any upside moves and trends have turned down on the daily charts. Weak demand overall for US Corn remains a big problem for the market. The Mississippi river remains low due to the dry conditions seen in most of the central parts of the US . Barge traffic has been reduced. Some water has been falling in the basin now in the form of rain and snow so conditions should be improving. The proposed EPA Ethanol production mandates released last week were less than expected by the trade and hurt Corn demand ideas. The cash market has been strong at the Gulf but weak in the Midwest river areas due to the low river levels. Other interior basis levels have been strong due to a lack of farm selling but are weaker than before. There are increasing concerns about demand with the Chinese economic problems caused by the lockdowns creating the possibility of less demand as South America has much better crops this year to compete with the US for sales. South American prices are currently cheaper than those in the US. Export demand in general has been slow so far this year.

Chart Analysis: Trends in Corn are down with objectives of 636 and 613 March. Support is at 624, 612, and 608 March, and resistance is at 654, 658, and 668 March. Trends in Oats are down with no objectives. Support is at 326, 320, and 314 March, and resistance is at 350, 360, and 371 March.

General Comments: Soybeans and Soybean Meal closed higher, with Soybean Meal making new contract highs, and Soybean Oil closed sharply lower. Trends remain up Soybean Meal but remain mixed for Soybeans and have turned down for Soybean Oil. The bio fuels mandates proposed by EPA last week increase the production of the fuels, but not by as much as the trade had expected. Conditions in Brazil are called very good in central and northern areas but are dry in the south. Production potential for the country as a whole are called very strong. There was news that China will start to ease Covid restrictions after some demonstrations by the Chinese people. Demonstrations were reported in China a week ago due to the Covid lockdowns as some people were killed in an apartment fire. Ideas that Chinese demand will stay weak overall and that Brazil growing conditions are good and getting better. However, it remains dry in Argentina and the crops and the planting pace are suffering. Export demand for the US is improved. Domestic demand should be strong for Soybeans as the crush spreads are strong and provided crushers with a big profit margin for their crushing The Mississippi river is low due to the dry conditions seen in most of the central parts of the US but some rain fell in the basin last week and river levels should work a little higher. Barge traffic has been reduced but could increase with the improved river flows.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1443, 1424, and 1421 January, and resistance is at 1465, 1469, and 1472 January. Trends in Soybean Meal are up with no objectives. Support is at 437.00, 430.00, and 425.00 January and resistance is at 453.00 4455.00, and 458.00 January. Trends in Soybean Oil are down with no objectives. Support is at 6070, 6010, and 5790 January, with resistance at 6340, 6540, and 6570 January.

General Comments: Palm Oil closed lower on weakness in competing vegetable oils markets and especially in Soybean Oil. Futures closed mostly a little higher yesterday. Hopes for improved demand from China were reported but export demand overall has improved lately. China has tried to relax some Covid restrictions so that quarantines now need to be eight days instead of at least two weeks. However, new outbreaks of the virus are being reported so the cities are still imposing lockdowns. Ideas are that supply and production will be strong, but demand ideas are now weakening and the market will continue to look to the private data for clues on demand and the direction of the futures market. Demand reports for the current month were stronger yesterday. Canola was lower along with Chicago Soybean Oil. News of less than expected bio fuels mandates from EPA and on n ideas that Chinese demand can remain weak due to increased outbreaks of Covid there were negative. Demand for export has been less. Farmers are holding tight to harvested supplies. Reports indicate that domestic demand has been strong due to favorable crush margins. Production was much improved this year on better weather during the Summer.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 833.00, 819.00, and 803.00 January, with resistance at 867.00, 872.00, and 880.00 January. Trends in Palm Oil are mixed. Support is at 3920, 3790, and 3750 February, with resistance at 4030, 4150, and 4180 February.

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Softs Report - Tuesday, Dec. 6
Grains Report - Monday, Dec. 5
Softs Report - Thursday, Dec. 1

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