WHEAT
General Comments: Wheat markets were lower again Monday. The USDA reports showed higher-than-expected planted area and lower-than-expected quarterly stocks, but there was nothing dramatic about the reports for Wheat. The trade expected improved ratings for Wheat in the reports yesterday, but the ratings were lower and could support futures today. Russia seems quiet although army officers and personnel are getting purged and the Russian Wheat exports keep flowing. Canada increased its Wheat planted area on Tuesday so production ideas from that country are higher. Uncertain world weather and Russia’s political problems that exploded over the weekend were reasons to see the uncertain price action early this week. The attempted coup ended as quickly as it began in Russia this weekend, but outside observers still say that the country is much less stable. Russian Wheat exports are continuing as if nothing happened so far, but that could change down the road, too. Rains are reported from the southern Great Plains to the Southeast, and the Midwest forecast features increasing chances for rain. The weather is still in focus around the world. Canada has been dry but is now getting some showers in parts of the Prairies.
Overnight News: The southern Great Plains should get isolated showers. Temperatures should be above normal. Northern areas should see isolated showers. Temperatures will average above normal. The Canadian Prairies should see scattered showers. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are down with no objectives. Support is at 637, 623, and 607 September, with resistance at 651, 689, and 713 September. Trends in Kansas City are mixed to down with objectives of 784 September. Support is at 784, 777, and 762 September, with resistance at 827, 849, and 854 September. Trends in Minneapolis are mixed to down with objectives of 807 September. Support is at 805, 801, and 793 September, and resistance is at 843, 846, and 863 September.

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RICE
General Comments: Rice closed mixed and little changed on Monday. Growing conditions are good for the new crop despite very hot conditions in southern growing areas and the overall new crop price strength has not been good so far. The weather is still good for crop development. Export demand has been uneven. Mills are milling for the domestic market in Arkansas and are bidding for some Rice, but at least some mills say they now have enough bought to last until the harvest of the next crop.
Overnight News: The Delta should get a few showers. Temperatures should be above normal.
Chart Analysis: Trends are mixed. Support is at 1469, 1451, and 1431 September and resistance is at 1531, 1542, and 1572 September.

CORN AND OATS
General Comments: Corn was lower again Monday as Corn traders reacted to the USDA reports that showed a larger planted area than the trade had expected and looked for improved crop condition ratings in the reports last night. A slight improvement was noted. Corn planted area was over 94 million acres, from expectations of about 92 million. The quarterly stocks report showed that about 5.1 billion bushels were in storage, down from trade guesses but it didn’t matter due to the plantings estimates reaction. The market is at important support areas on the charts and it is possible that this support holds for the week. The weather features additional precipitation for major growing areas this week. Demand for US Corn in the world market has been very low and domestic demand has been week due to reduced Cattle and other livestock production. Reports of dry initial development conditions were important. Ideas are that the top end of the yield potential is lost but that no serious damage has been done yet, but serious damage could be done to crops where the rains miss in the next few weeks. The Brazil Corn harvest is underway and so export prices for Corn from Brazil are getting relatively cheap and Brazil is getting the business.
Overnight News:
Chart Analysis: Trends in Corn are down with no objectives. Support is at 486, 480, and 474 September, and resistance is at 500, 509, and 513 September. Trends in Oats are down with objectives of 367 and 343September. Support is at 381, 369, and 350 September, and resistance is at 401, 409, and 415 September.

SOYBEANS
General Comments: Soybeans and\ the products were all sharply higher with most of the gains coming from the USDA plantings estimates released on Friday morning. Futures gave back most of the gains in Soybeans and Soybean Meal closed slightly lower. Only Soybean Oil held the gains together. USDA said that Soybeans planted area was just 81.5 million acres and the trade had expected something near 84.6 million acres. The difference is very large and indicates that there could be little space for reduced yield estimates from bad weather moving forward. The quarterly stocks were estimated 796 million bushels in storage as of June 1, but it was the plantings estimate that set the market off to sharply higher levels. Trends turned up in all three markets last week mostly due to the plantings estimates although Soybean Oil also enjoys strong bio fuels demand. The planted area report completely changed the Soybeans market. Off and on precipitation is forecast for the next couple of weeks but it is possible that not all areas will get beneficial rain. Big showers and storms were reported in Chicago and to the east over the weekend. Ideas are that the top end of the yield potential is gone but severe damage has not been reported yet. Damage could become severe soon if areas do not get any rain. Reports indicate that bio fuels demand for Soybean Oil is very strong despite the moves in Washington to keep bio fuels demand at more moderate levels and is pushing domestic demand for Soybeans. Brazil basis levels are still low and the US is being shut out of the market for most importers. Brazil is still selling a lot of Soybeans to China and other countries. Brazil has a very good crop, but the additional Soybeans grown in Brazil will be partially wiped out by the losses in Argentina. Argentina has been forced to import from Brazil to keeps its crushing facilities operating.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed to up with no objectives. Support is at 1447, 1428, and 1407 August, and resistance is at 1507, 1524, and 1536 August. Trends in Soybean Meal are mixed to up with no objectives. Support is at 405.00, 307.00, and 390.00 August, and resistance is at 420.00, 439.00, and 442.00 August. Trends in Soybean Oil are up with objectives of 6460 August. Support is at 6020, 5870, and 5720 August, with resistance at 6490, 6620, and 6740 August.

CANOLA AND PALM OIL
General Comments: Palm Oil was higher Monday on ideas of reduced US Soybeans production and a weaker Ringgit. The export reports from the private sources have not been strong for several weeks, but Amspec reported improved exports for the month on Friday. Ideas are that demand is generally weak, with China struggling to open its economy and India looking to Sun oil for imports at the expense of other vegetable oils. Canola was closed on Monday. Drier weather is forecast for the Prairies. Trends are up on the daily charts in sympathy with the price action in Chicago. Reports indicate that domestic demand has been strong due to favorable crush margins, but export demand is questioned, especially since the release of the weaker than expected Chinese economic data last week. Scattered showers and rains have been reported so planting and initial growth conditions are good.
Overnight News:
Chart Analysis: Trends in Canola are up with objectives of 755.00 and 797.00 November. Support is at 728.00, 723.00, and 713.00 November, with resistance at 744.00, 764.00, and 782.00 November. Trends in Palm Oil are up with no objectives. Support is at 3870, 3800, and 3700 September, with resistance at 4000, 4100, and 4250 September.

Midwest Weather Forecast Scattered showers and storms. Temperatures should average above normal.

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