Grains Report - Wednesday, June 24

CORN AND OATS
General Comments: Corn was lower on ideas of beneficial rains and good crop conditions for the Midwest. Futures markets have had hot and dry weather in much of the Midwest last week to support prices, but there was some rain in most areas over the weekend and more yesterday. There have also been problems with demand. Meats processors are back and are operating at about 95% of capacity. The backlog of Cattle and Hogs will slowly disappear under this scenario and meats wholesale and retail prices are falling. Ethanol demand is also improving as lock down orders are lifter in most states and in Europe. Demand for gasoline and ethanol has gotten a little stronger and should continue to improve over time.
Overnight News:
Chart Analysis: Trends in Corn are mixed to down with objectives of 318 and 308 July. Support is at 321, 319, and 315 July, and resistance is at 329, 335, and 340 July. Trends in Oats are mixed to down with objectives of 293 and 285 July. Support is at 299, 295, and 285 July, and resistance is at 310, 315, and 319 July.

SOYBEANS AND PRODUCTS
General Comments: Soybeans were lower on a lack of Chinese demand and ideas of improved growing conditions in the US Midwest. USDA did announce a sale of 132,000 tons of US Soybeans to China but ideas are that the deal was struck last week and only announced yesterday. China has become a much more active buyer of Soybeans here in the US and has promised to ramp up purchases in order to comply with commitments it made under the Phase One trade deal. China has remained a very active buyer in South America even as it has increased Soybeans buying here in the US, so the overall amount taken from the US might not match the hopes of the trade. Brazil prices have been creeping higher for the rest of the world as it starts to run out of Soybeans to export, so China and the rest of the world will look to the US and Argentina for additional supplies. The US weather is considered good for growing Soybeans at this time with rains seen over the weekend and more again yesterday. USDA showed very good crop conditions again this week in its weekly update.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 870, 865, and 861 July, and resistance is at 881, 896, and 898 July. Trends in Soybean Meal are mixed. Support is at 286.00, 282.00, and 280.00 July, and resistance is at 290.00, 292.00, and 294.00 July. Trends in Soybean Oil are mixed. Support is at 2780, 2700, and 2690 July, with resistance at 2850, 2870, and 2890 July.

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