Grains Report - Wednesday, Sept. 16

CORN AND OATS
General Comments: Corn was a little lower due to a lack of new export demand. Corn harvest has started in the south but there are no yield reports yet. The market acts as if all of the bullish news is in the market already, but there are still chances for prices to move higher over time. Chinese buying will need to be watched. Both China and USDA put Chinese imports at 7.0 million tons for the crop year but many in the trade feel this is too low. China has seen weather damage to a large potion of the crop areas this year. Damage came earlier in the year to southern growing areas and is happening now in northeast growing areas due to typhoons tht have hit the region. The US Midwest weather is quiet this week and harvesting will be starting soon. The harvest weather should be good but there was damage earlier to the crops from drought and the Derecho winds in Iowa and northern Illinois.
Overnight News:
Chart Analysis: Trends in Corn are up with objectives of 374 December. Support is at 364, 363, and 359 December, and resistance is at 371, 374, and 377 December. Trends in Oats are mixed. Support is at 265, 262, and 260 December, and resistance is at 274, 279, and 282 December.

SOYBEANS AND PRODUCTS
General Comments: Soybeans and the products closed lower. Demand was a little less than expected. Much of the demand until now has been from China. The trade generally expects China to shift its buying back to Brazil in the near future, but USDA suggests that China could continue to buy here a little longer than expected. World ending stocks estimates were neutral when compared to trade expectations but were lower than last month. That is due mostly to the lower US production estimates. The Midwest weather is dry and warm and harvest should start soon.
Overnight News: China bought 327,000 tons of US Soybeans
Chart Analysis: Trends in Soybeans are up with no objectives. Support is at 982, 967, and 959 November, and resistance is at 1009, 1012, and 1024 November. Trends in Soybean Meal are up with objectives of 322.00 October. Support is at 308.00, 306.00, and 302.00 October, and resistance is at 321.00, 324.00, and 326.00 October. Trends in Soybean Oil are mixed to up with objectives of 3480, 3510, and 3650 October. Support is at 3390, 3320, and 3260 October, with resistance at 3460, 3490, and 3520 October.

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