WHEAT
General Comments: All three markets closed lower yesterday on follow through selling from speculators. The dry weather outlook continues for Russia and the US. At least two Wheat producing regions in Russia have declared a state of emergency for Wheat producers due to a lack of rain and little to no rain has been a problem with Winter Wheat planting in the US. Ideas are that the Great Plains are too hot and dry for best Wheat development are still around as the Winter crop gets planted. It is also hot and dry in western Canada. Cash markets in Russia were higher and are now about $230.00/ton as production estimates remain lower and two regions have been declared a farming emergency due to the hot and dry weather.
Overnight News:
Chart Analysis: Trends in Chicago are mixed to down. Support is at 576, 564, and 561 December, with resistance at 588, 598, and 611 December. Trends in Kansas City are mixed to down. Support is at 579, 571, and 566 December, with resistance at 592, 608, and 623 December. Trends in Minneapolis are mixed to down. Support is at 611, 604, and 595 December, and resistance is at 632, 646, and 655 December.

DepositPhotos

RICE
General Comments: Rice closed lower and gave back the gains of Monday. Trends are still mixed on the daily charts. The USDA reports released on Friday showed no changes to US supply and demand results. Lower Asian prices are still reported after India opened up exports for non Basmati White Rice last week. Brazil prices remain strong and well above US prices. The US weather has been an issue much of the growing season with too much rain early in the year. Some areas are now too hot and dry, especially in Texas, and Texas yields are down. The harvest should be wrapping up this week for most producers.
Overnight News:
Chart Analysis: Trends are mixed. Support is at 1489, 1475, and 1468 November and resistance is at 1524, 1532, and 1540 November.

CORN AND OATS
General Comments: Corn closed lower with active harvest conditions in the Midwest. Oats were a little higher. Corn is often coming to the elevator at levels at 10% to 12% moisture instead of the desired 14% moisture and it has made a difference in yields overall. It remains dry in the Midwest, and there are now forecasts for dry conditions and cooler temperatures in the Midwest for the coming week. Most producers have concentrated on the Soybeans harvest and are turning attention to Corn with Soybeans mostly in the bin for a lot of them. Producers plan to hold new crop supplies in hopes for higher prices. Increased US demand comes from the fact that Corn prices are already the cheapest in the world.
Overnight News: Mexico bought 1.62306 million tons of US Corn and unknown destinations bought 332,000 tons of US Corn.
Chart Analysis: Trends in Corn are down. Support is at 401, 397, and 387 December, and resistance is at 409, 413, and 420 September. Trends in Oats are mixed to down. Support is at 357, 349, and 341 December, and resistance is at 382, 394, and 397 December

SOYBEANS
General Comments: Soybeans and Soybean Meal were lower yesterday as Brazilian farmers are planting what is expected to be a very big crop in central and northern areas of the country and in response to the USDA reports released on Friday morning. Soybean Oil closed higher. Traders were also disappointed that China did not announce new economic support measures for its economy last week with the country returning to work. Many had expected some important new moves o support the Chinese economy by the government but were disappointed. Warm and dry weather in the Midwest recently has hurt production ideas due to ideas of small and very dry beans in the pods. Farmers have focused on Soybeans ha rest but now are almost done and are switching to Corn. Soybeans ae often harvested at moisture levels below 10% this year. Dry weather will last all week and into next week. Central and northern Brazil has also been dry and reports indicate that soil moisture levels are at 30 year lows. Rains have appeared and will stick around as it looks like the rainy season is now underway. Soils are in much better shape in southern Brazil and Argentina.
Overnight News: Unknown destinations bought 175,000 tons of US Soybeans.
Analysis: Trends in Soybeans are down. Support is at 972, 961, and 948 November, and resistance is at 1012, 1025, and 1039 November. Trends in Soybean Meal are mixed to down. Support is at 307.00, 300.00, and 294.00 December, and resistance is at 316.00, 320.00, and 327.00 December. Trends in Soybean Oil are mixed to down. Support is at 4140, 4070, and 4020 December, with resistance at 4330, 4430, and 4530 December.

PALM OIL AND CANOLA
General Comments: Palm Oil was higher yesterday on strength in the outside markets. Demand has held together despite India increasing import taxes on Palm Oil and China is now back from a holiday week to help demand ideas hold together. Canola was lower on weakness in Chicago as the harvest is active but starting to wind down. The weather has been hot and dry in Canada, and it looks like Canola production has been impacted. The weather has called for dry conditions in the Prairies and yields are expected to be the same or less. Demand concern remain at the forefront with less demand expected from China with that country now in a trade war with Canada, but so far demand has held together well.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 596.00, 588.00, and 572.00 November, with resistance at 611.00, 627.00, and 633.00 November. Trends in Palm Oil are mixed. Support is at 4200, 4140, and 4070 January, with resistance at 4310, 4360, and 4420 January.

More By This Author: