Grains Report - Wednesday, Sept. 16

WHEAT
General Comments: Winter Wheat markets and Minneapolis Spring Wheat closed lower. SRW made new lows for the move as did Minneapolis. Wheat continues to follow world market price action although Spring Wheat has been weaker with the harvest.. Prices in Russia in particular have been stronger in the past couple of weeks. Larger world ending stocks estimates from USDA reflect larger production estimates in Australia and unchanged production estimates in Russia. Less production is likely in Europe and Argentina due to drought. About half of Argentine growing areas are affected as was much of France. The next crop is being planted now in northern parts of the world. Conditions are improved in the US after some rains fell in the Great Plains. The Midwest has had good rains although some areas in the southern Midwest have not gotten much rain recently. It is also too dry for planting in parts of Ukraine and southern Russia. There is still plenty of time for rains to start planting in the latter two areas as well as in US Winter Wheat areas.
Overnight News: The southern Great Plains should get scattered showers Wednesday and Thursday, otherwise mostly dry conditions. Temperatures should be near to below normal. Northern areas should see isolated showers or dry conditions. Temperatures will average near to below normal. The Canadian Prairies should see isolated showers. Temperatures should average near to below normal.
Chart Analysis: Trends in Chicago are down with objectives of 530, 509, and 504 December. Support is at 527, 516, and 510 December, with resistance at 543, 547, and 550 December. Trends in Kansas City are down with objectives of 457, 439, and 430 December. Support is at 463, 457, and 450 December, with resistance at 473, 480, and 485 December. Trends in Minneapolis are down with objectives of 505 December. Support is at 523, 519, and 515 December, and resistance is at 531, 535, and 549 December.

RICE
General Comments: Rice was higher as Hurricane Sally began to bear down on the Gulf Coast. It is expected to come onshore near the Mississippi-Louisiana state line and could bring excessive rainfall to crops in Mississippi. The rest of the growing areas should be spared any real dangerous weather. Reports indicate that export and domestic demand has not been real strong to start out the new crop year. Exporters and domestic mills are thought to be holding back on purchases for as long as possible due to the current relatively high prices.
Overnight News: The Delta should get scattered showers. Temperatures should be near to above normal.
Chart Analysis: Trends are down with objectives of 1191 November. Support is at 1204, 1197, and 1188 November, with resistance at 1220, 1231, and 1237 November.

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