Grains Report - Wednesday, Nov. 4


General Rice was a little lower and made new lows for the move in quiet trading. Export demand has been strong in general. Reports indicate that domestic demand has been poor to average with better consumer demand more than offset by much less demand from schools and other institutions. The harvest is mostly over in northern states with good field yields reported. Southern Louisiana and Texas are waiting for the second crop harvest to start. Producers had to endure Hurricane Delta and then Zeta in Louisiana, and some of the second crop Rice got hurt. Quality is said to be very good everywhere.

Overnight News: The Delta should get scattered showers. Temperatures should be below normal.

Chart Analysis: Trends are down with objectives of 1214 and 1190 January. Support is at 1223, 1220, and 1218 January, with resistance at 1240, 1250, and 1257 January.


General Comments Corn and Oats were a little higher on expectations for a Biden presidential victory that could create a new government and stimulus spending. The spending would help support a Cornmarket that could lose more ethanol demand due to the Coronavirus. The virus could cause lockdowns again and could keep people off the road, causing less demand for ethanol. US weather conditions are much improved this week with warmer and drier weather and the harvest is underway again. Yield reports have generally been good except for the drought and derecho areas of Iowa.

Chart Analysis: Trends in Corn are mixed. Support is at 398, 393, and 386 December, and resistance is at 404, 410, and 413 December. Trends in Oats are mixed to down with objectives of 274 December. Support is at 291, 286, and 284 December, and resistance is at 297, 302, and 305 December.


General Comments: Soybeans and products closed higher on hopes for more Chinese demand with a Biden victory and despite the return of the Coronavirus to the US and Europe. China has not appeared in the daily sales announcements from USDA in a couple of weeks and the market is feeling the loss. China still needs to buy for crushers but appears to have bought what was necessary for the reserve. Ideas are that a Biden victory would mean better intergovernmental relations with China and therefore increased demand for US Soybeans. The weather in the US is good for any remaining harvest as it has turned drier and warmer this week after a cold and wet week last week. The weather in South America is improved. Showers and rains have fallen in most of Brazil and much of Argentina. Southern Brazil and Paraguay have missed out on the good rains but did get a few showers. Soybeans are actively being planted in Brazil, but southern areas are still too dry as are parts of Argentina and all of Paraguay and Uruguay.

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