Grains Report - Wednesday, Nov. 11

WHEAT
General Comments: Winter Wheat markets were a little higher in response to the USDA reports. USDA did not change US production but did cut ending stocks due to a slight increase in demand. US weather is much improved with some precipitation reported in parts of the western Great Plains. Only southwest Kansas and southeast Colorado remain dry. It was very warm last week, but wetter and cooler weather is expected this week. Parts of eastern Ukraine and southern Russia are getting some light showers. Western Australia conditions are improving. The rains in the midwestern parts of the US are the most substantial and will have helped solve the longer term drought problem out there. The showers in Ukraine and Russia are too late to give much help, but some plants will become better established. 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. Temperatures should be above normal. Northern areas should see dry weather this week and showers this weekend. Temperatures will be above normal. The Canadian Prairies should see scattered showers. Temperatures should trend to near to below normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 595, 591, and 587 December, with resistance at 616, 626, and 636 December. Trends in Kansas City are mixed to up with objectives of 583 December. Support is at 549, 546, and 536 December, with resistance at 569, 581, and 585 December. Trends in Minneapolis are mixed. Support is at 552, 547, and 540 December, and resistance is at 573, 576, and 579 December.

RICE
General Comments: Rice was a little higher after trading lower during the day. USDA cut production slightly and cut exports by a bigger amount. The report should have been a little negative for futures. Export demand has been strong in general but was very weak last week. Reports indicate that domestic demand has been poor to average with better consumer demand more than offset by much less demand from schools and other institutions. The harvest is mostly over in northern states with good field yields reported. Southern Louisiana and Texas are harvesting the second crop and yield reports have been good in areas not hit by the hurricanes. Producers had to endure Hurricane Delta and then Zeta in Louisiana, and some of the second crop Rice got hurt. Quality is said to be very good everywhere
Overnight News: The Delta should get mostly dry conditions. Temperatures should be near to above normal.
Chart Analysis: Trends are mixed. Support is at 1234, 1223, and 1220 January, with resistance at 1250, 1257, and 1262 January.

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