WHEAT
General Comments: Wheat markets were lower again in range trading. Ideas are that weak demand can continue due in part to the stronger US Dollar. The Dollar was lower yesterday but is still strong overall Russia is looking to export more and wants Ukraine to export less and to only countries it defines as poor. Ukraine now complains that Russia is denying it the ability to export. Russia still appears to be losing the war and could do something rash to try to hold things together. The demand for US Wheat still needs to show up and right now there is no demand news to help support futures.. The US central and southern Great Plains have been too hot and dry. Planting and initial emergence could be affected in both part of the world.
Overnight News: The southern Great Plains should get scattered showers. Temperatures should average below normal. Northern areas should see mostly dry conditions . Temperatures will average below normal. The Canadian Prairies should see isolated showers. Temperatures should average below normal.
Chart Analysis: Trends in Chicago are mixed to down with objectives of 846 and 794 December. Support is at 819, 800, and 791 December, with resistance at 837, 863, and 873 December. Trends in Kansas City are mixed to down with objectives of 930 and 872 December. Support is at 922, 896, and 885 December, with resistance at 938, 960, and 985 December. Trends in Minneapolis are mixed. Support is at 938, 907, and 885 December, and resistance is at 971, 993, and 1001 December.

Photo by Polina Rytova on Unsplash

RICE
General Comments: Rice was lower again yesterday in part to shipping delays caused by the low river levels on the Mississippi and as the harvest pressure continued. Demand in general has been slow for Rice. The weekly charts show that trends are down. Harvest progress is almost complete in Arkansas, the largest Rice producing state, and yields and quality are reported to be very strong. Mississippi is also at harvest with much more mixed results. Producers are done with harvesting in Texas as well as in southern Louisiana Yield reports have been generally good in Louisiana and quality reports are generally good. Yield and quality have been up and down in Texas.
Overnight News: The Delta should get scattered showers. Temperatures should be near to above normal.
Chart Analysis: Trends are down with objectives of 1607 November. Support is at 1604, 1592, and 1588 November and resistance is at 1634, 1650, and 1658 November.

CORN AND OATS
General Comments: Corn closed higher yesterday in range trading. A sharply lower US Dollar helped rally Corn prices on the idea that demand could start to improve. Futures continue to hold support areas on the charts The Mississippi river is low due to the dry conditions seen in most of the central parts of the US and there are no forecasts for an improvement soon even with rain in the forecast for today. Barge traffic has been reduced. The cash market has been strong at the Gulf but weak in the Midwest river areas due to the low river levels. The demand side will need to be watched as Corn demand needs to hold to keep lower ending stocks estimates in play. There are increasing concerns about demand with the Chinese economic problems caused by the lockdowns creating the possibility of less demand as South America has much better crops this year to compete with the US for sales. Export demand in general has been slow so far this year.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 674, 672, and 665 December, and resistance is at 689, 700, and 706 December. Trends in Oats are down with objectives of 461 and 329 December. Support is at 334, 328, and 322 December, and resistance is at 373, 384, and 393 December.

SOYBEANS
General Comments: Soybeans and the products were higher as the US Dollar moved lower and demand ideas got better. The US is now more than 80% done with the harvest and a turn to higher prices becomes more possible. The rally potential might not be that great unless demand improves, and the US Dollar turns lower. The Dollar might have reversed from moving higher on Friday. The US will still harvest plenty of Soybeans in the next few weeks and ideas that Brazil is off to a very good start. The Mississippi river is low due to the dry conditions seen in most of the central parts of the US and there are no forecasts for an improvement soon. Barge traffic has been reduced. The trade is worried about demand due to a lack of Chinese interest caused by the Covid lockdowns there and in part by the stronger US Dollar. Brazil is still offering, and South America as a whole is expected to produce a very big crop later this year for harvest next Spring as the weather outlook is positive for crops. However, a third year of La Nina as predicted by meteorologists could cut the production potential. US production ideas remain strong after mostly good weather in August. Basis levels are weaker in the Midwest but are strong at the Gulf. There are still Chinese lockdowns and there are fears that China has been importing less as a result. However, Chinese data showed huge imports from all sources in September. President Xi has been elected to a third term in China and has stocked the ruling body with his associates so there are fears that nothing will change soon there.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1366, 1357, and 1349 November, and resistance is at 1398, 1410, and 1414 November. Trends in Soybean Meal are mixed. Support is at 404.00, 399.00, and 392.00 December, and resistance is at 419.00 423.00, and 430.00 December. Trends in Soybean Oil are up with objectives of 7430 December. Support is at 6960, 6810, and 6710 December, with resistance at 7260, 7380, and 7460 December.

CANOLA AND PALM OIL
General Comments: Palm Oil was lower yesterday on reports of light export demand The market was closed today. Ideas are that supply and production will be strong, but demand ideas are now weakening and the market will continue to look to the private data for clues on demand and the direction of the futures market and that data has been weaker so far this month. Export data has been strong this month from the private sources and MPOB reported improved demand last month. Production was also higher and ending stocks were up more than 10% to 2.315 million tons. Canola was mostly lower yesterday, but November was higher as the carry spreads corrected a bit. The Canadian Dollar was strong against the US Dollar yesterday. The Canola harvest is about over. Reports indicate that domestic demand has been strong due to favorable crush margins. The Canola growing conditions are much improved and production estimates are higher for the year.
Overnight News:
Chart Analysis: Trends in Canola are up with objectives of 915.00, 956.00, and 958.00 November. Support is at 885.00, 873.00, and 861.00 November, with resistance at 910.00, 932.00, and 935.00 November. Trends in Palm Oil are mixed to up with objectives of 4200 and 4500 January. Support is at 4000, 3880, and 3820 January, with resistance at 4200, 4280, and 4380 January.

More By This Author:

Softs Report - Tuesday, Oct. 25
Grains Report - Monday, Oct 24
Softs Report - Friday, Oct. 21