Photo by Daniela Paola Alchapar on Unsplash
 

Wheat:

General Comments: Wheat markets closed mixed to higher yesterday on news that Russia has bombed Ukrainian ports in retaliation for Ukrainian strikes on Russia over the weekend. Odessa was hit first, and then Danube River facilities were bombed. Russia is still exporting and offering Wheat into the world market at $270.00 per ton and is getting quite a bit of business. Ukraine and the EU countries are offering as well and are getting new business due to the higher Russian prices. Demand has been poor for US Wheat as Russia's production looks strong exports from Russia have not abated and Ukraine is still exporting, although mostly over land through the EU at higher costs. Ukraine has lately shipped at least three loads of grain through the Black Sea after bombing a lot of Russian ships to allow for safe passage. Weather forecasts call for drier weather for Australia and Argentina, with production losses now expected for both countries.
Overnight News: The southern Great Plains should get isolated showers. Temperatures should be above normal. Northern areas should see isolated showers. Temperatures will average above normal. The Canadian Prairies should see scattered showers. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 570, 564, and 558 December, with resistance at 600, 607, and 616 December. Trends in Kansas City are mixed to down with objectives of 652 December. Support is at 703, 691, and 685 November, with resistance at 726, 733, and 741 December. Trends in Minneapolis are mixed. Support is at 760, 756, and 752 December, and resistance is at 791, 793, and 810 December.
 

Rice:

General Comments: Rice closed higher on good volume speculative and maybe some commercial buying was seen before the release of the USDA reports on Friday. Ideas are that production will be less in this and coming reports. Yields are called average to below average in Texas and average so far in Arkansas as the harvest moves forward. The quality has been uneven with some crops affected by the extreme heat seen during the growing season. India will not allow Rice exports except for Basmati for now because not enough rain in some production areas. Northern areas are too wet and southern areas are too dry.
Overnight News: The Delta should get isolated showers, mostly near the Gulf Coast. Temperatures should be above normal.
Chart Analysis: Trends are mixed. Support is at 1588, 1577, and 1573 November and resistance is at 1615, 1629, and 1637 November.
 

Corn And Oats:

General Comments: Corn was a little lower and Oats were a little higher yesterday, with Corn most traders looking ahead to the next round of USDA reports to be released on Friday. The Corn harvest is underway with yield reports showing good and bad results with no real trend evident. The yield reports once again show the value of using GMO seeds as stressful weather was seen in much of the Midwest over the Summer growing season. The market has also been supported as farmers report no real sales of Corn as they wait for higher prices. Weather forecasts remain mostly dry but with moderate temperatures for the Midwest for the next week. The harvest is coming so moisture needs are less, and many producers report that Corn is shutting down early and that the harvest could start sooner than normal. Demand for US Corn in the world market has been very low and domestic demand has been weak due to reduced Cattle and other livestock production. The Brazil Corn harvest is underway and so export prices for Corn from Brazil are relatively cheap and Brazil is getting the business. That could change in the coming year is the growing conditions deteriorate in Brazil as is possible in an El Nino year.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 465, 463, and 456 December, and resistance is at 485, 493, and 499 December. Trends in Oats are down with no objectives. Support is at 419, 410, and 399 December, and resistance is at 445, 456, and 465 December.

Soybeans:

General Comments: Soybeans and the products closed a little higher yesterday on speculative buying as the harvest starts to expand. Traders are mostly getting ready for the USDA crop reports that will be released on Friday. Initial yield results show that production and yields are above and below APH data with no real trend showing just yet. The data shows that GMO seeds once again supported better production for many producers. Speculators were liquidating long positions. Ideas that yields are disappointing and reports from USDA of new sales of Soybeans provided the support. Weather forecasts call for dry conditions and near-to below-normal temperatures for the Midwest. Most longer-range maps indicate the potential for dry weather. Temperatures are expected to be near to above normal. Ideas are that the top end of the yield potential is gone and severe damage is becoming possible in some areas. Brazil's basis levels are still low, and the US is being shut out of the market for most importers, but the US is price competitive now. Brazil is still selling a lot of Soybeans to China and other countries.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed to down with no objectives. Support is at 1282, 1276, and 1260 November, and resistance is at 1327, 1346, and 1368 November. Trends in Soybean Meal are mixed to down with objectives of 370.00 October. Support is at 387.00, 383.00, and 377.00 October, and resistance is at 395.00, 399.00, and 403.00 October. Trends in Soybean Oil are mixed to down with objectives of 5770 October. Support is at 5780, 5650, and 5480 October, with resistance at 6010, 6120, and 6220 October.
 

Canola And Palm Oil:

General Comments: Palm Oil was lower along with the price action in competing vegetable oils and on ideas of increasing supplies. AmSpec reported yesterday that exports were up 15% from last month at this time. Bullish traders still think that El Nino will cause big production problems down the road and are holding out hopes for rallies in the future. Canola was higher with Chicago price action and as the harvest has become more active. Drier weather is generally forecast for the Prairies and the crops have been stressed, but some rain is falling now to maintain crop conditions. Speculators were selling as the trends are turning down again.
Overnight News:
Chart Analysis: Trends in Canola are down with no objectives. Support is at 694.00, 686.00, and 670.00 November, with resistance at 744.00, 754.00, and 767.00 November. Trends in Palm Oil are mixed to down with objectives of 3600 and 3460 December. Support is at 3640, 3560, and 3550 December, with resistance at 3740, 3780, and 3820 December.

More By This Author: