Grains Report - Thursday, May 13

assorted food in sacks

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Wheat

Wheat markets were lower in response to the USDA WASDE reports. Futures remain in a sideways range on the daily charts. The reports showed less demand to go with less production. Minneapolis held better as production forecasts are lower for spring wheat. The dry weather in other parts of the Great Plains did not appear to make much of a difference to winter wheat production and yields.

Mostly dry conditions are in the forecast for this week in western Texas. Dry conditions remain constant in the northern Great Plains and Canadian Prairies, although some western fringe areas did get some rains. Precipitation is expected to continue in western areas, but eastern areas should stay dry. Kansas also got some beneficial precipitation over the weekend.

Wheat remains a weather market, but the demand side has been weak. Demand remains disappointing, but the production might not be prepared in case of better demand in the coming year. Corn prices are high, so demand for feed wheat could increase.

In overnight news, the southern Great Plains should get isolated to scattered showers. Temperatures should be near to below normal. Northern areas should see scattered showers this weekend. Temperatures will be near normal. The Canadian Prairies should see isolated showers. Temperatures should average near to above normal.

For chart trends, Chicago trends are mixed. Support is at 720, 702, and 701, with resistance at 753, 767, and 769. Trends in Kansas City are mixed. Support is at 683, 667, and 661, with resistance at 705, 722, and 741. Trends in Minneapolis are mixed. Support is at 745, 724, and 710, and resistance is at 774, 784, and 787.

Rice

Rice prices were lower again on what appeared to be speculative selling due to forecasts for increased precipitation and warmer temperatures for US growing areas. The USDA WASDE reports were considered neutral to negative for the trade. Rice areas have generally been wet, although some parts of Texas could use a little rain. Temperatures have been cold, especially in Arkansas, but the crop has been getting planted and is emerging, anyway.

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