Photo by Maddi Bazzocco on Unsplash

Wheat:

General Comments: Wheat markets were lower yesterday as the focus once again was on bad world conditions and US conditions for the world demand. The US western Great Plains got some rainfall and the rains fell in some of the areas most in need of some precipitation. It is turning warmer and drier farther north to give hope to Spring Wheat farmers that they can plant crops. Europe is too hot and dry and India and Pakistan are both getting major heat waves and dry conditions. India has exempted Egypt from the ban and will honor previous commitments. It had been expected to offer up to 12 million tons to the world market. Ukraine's exports were reduced due to the war and the trade is hoping for improved production in the EU to make up the difference. USDA reduced production estimates for Hard Red Winter Wheat in the US recently due to the hot and dry conditions in the western Great Plains and reduced Spring Wheat production estimates due to delayed planting. Only Russia says it has a very big crop coming and many will not buy from there because of the sanctions.
Overnight News: The southern Great Plains should get isolated showers or dry conditions. Temperatures should average above normal. Northern areas should see isolated showers. Temperatures will average above normal. The Canadian Prairies should see isolated showers in western areas. Temperatures should average near to above normal.
Chart Analysis: Trends in Chicago are mixed down with objectives of 1129 and 1046 July. Support is at 1107, 1083, and 1068 July, with resistance at 12175, 1209, and 1212 July. Trends in Kansas City are mixed down with objectives of 1203 and 1123 July. Support is at 1200, 1179, and 1154 July, with resistance at 1259, 1291, and 1303 July. Trends in Minneapolis are mixed down with objectives of 1176 July. Support is at 1253, 1249, and 1235 July, and resistance is at 1280, 14322, and 1340 July.
 

Rice:

General Comments: Rice was lower but closed in the middle of the daily range. The planting pace is catching up to normal, but acreage estimates are still down for the next crop. Some traders note that it will be difficult to move Rice at current price levels and they are worried about domestic and export demand moving forward. It is hot and dry in India and it is possible that Rice production will be affected. Rice is a highly political grain for India and the government goes out of its way to subsidize crop production and support Rice farmers.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be above normal.
Chart Analysis: Trends are mixed. Support is at 1706, 1692, and 1661 July and resistance is at 1746, 1749, and 1782 July.
 

Corn And Oats:

General Comments: Corn closed lower on confirmation on Monday night that farmers are making rapid progress in getting Corn planted. The weather was variable last week with periods of rain and very cool temperatures and then warm and dry conditions and more of the same is expected this week. Many think the top end of the yield has been taken off the Corn crop due to the delayed planting. It already thinks there is a reduced planted area because of the March planning intentions reports from USDA and the bad planting weather. The potential loss of Ukraine's exports of Corn makes the world situation tighter. China has a Covid outbreak and has closed some cities and some ports in response. Brazil and China have reached an agreement on phytosanitary rules so that Brazil can now export Corn to China.
Overnight News:
Chart Analysis: Trends in Corn are mixed down with objectives of 757, 743, and 739 July. Support is at 753, 739, and 729 July, and resistance is at 788, 797, and 810 July. Trends in Oats are mixed up with objectives of 695, 729, and 736 July Support is at 658, 644, and 625 July, and resistance is at 685, 698, and 709 July.
 

Soybeans:

General Comments: Soybeans and Soybean Meal were higher as the US cash market needs some sales from producers. New crop Soybeans and Soybean Oil were lower for the week despite strength in Palm Oil futures. There are still fears of a cooling economy and forecasts for much-improved planting weather this week. Soybean Oil remains well supported as demand is holding strong amid very tight supplies of vegetable oils here and around the world. There are still worries about Chinese demand because of Covid lockdowns there. China has been a major buyer of US Soybeans this year after a very slow start due to the problems in South America. They are buying for this year and already have booked a large number of new crop Soybeans to cover future needs. Most of the current buying is for next year. Ideas are that the Chinese economy could slow down due to the Covid lockdowns there and cause the country to purchase less Soybeans in the world market.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1674, 1645, and 1640 July, and resistance is at 1720, 1734, and 1741 July. Trends in Soybean Meal are mixed. Support is at 418.00, 408.00, and 406.00 July, and resistance is at 433.00 436.00, and 439.00 July. Trends in Soybean Oil are mixed. Support is at 7860, 7700, and 7360 July, with resistance at 8200, 8250, and 8460 July.
 

Canola And Palm Oil:

General Comments: Palm Oil was higher today on ideas of less Malaysian production due to worker shortages from Covid and on the potential for strong exports for the month from Malaysia. The government is now imposing a domestic reserve on exporters. Some analysts think Palm Oil is topping out anyway due to reduced demand ideas. Hopes for better demand from India keep the market supported. A new Covid outbreak is reported in China and cities and infrastructure has been shut down, including some airports and water ports. The economy could slow down and affect demand. Production from Malaysia is expected to increase as well as the Covid lockdowns finally go away and as the weather is good for production. Canola was higher. It is reported to be very dry and has been cold for planting but better planting weather is coming now. StatsCan said that Canadian farmers intend to reduce the planted area for Canola this year and use the area to plant Wheat instead. There are ideas of reduced Sunflower export potential from Russia and Ukraine. The market is worried about South American production as well. Canada produced a very short crop of Canola last year so supplies are tight.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 1164.00, 1154.00, and 1129.00 July, with resistance at 1200.00, 1214.00, and 1219.00 July. Trends in Palm Oil are up with objectives of 6680 and 7080 August. Support is at 6280, 6170, and 6000 August, with resistance at 6530, 6870, and 7000 August.