Grains Report – Tuesday, Nov. 21

General Comments: Wheat markets were lower again yesterday on the poor demand potential for U.S. Wheat. The weekly export sales report was bad once again last week and reports indicate that Ukraine is using Black Sea ports to load export Wheat. Russia is still exporting and offering Wheat into the world market and is reporting that the crop is larger than originally thought. Ukraine and the EU countries are offering as well and are getting new business. Demand has been poor for U.S. Wheat as Russia production looks strong, but exports are expected to increase later in the marketing year. Weather forecasts call for drier weather for Australia, with production losses now expected. There are reports of some showers in both countries to raise production estimates slightly but not enough to bring production close to average. Argentine conditions are reported to be good after a very dry start but showers and rains in recent weeks. It has been too wet in southern Brazil and much of the Wheat grown there is expected to be feed grade instead of milling grade.
Overnight News: The southern Great Plains should get isolated showers. Temperatures should be below normal. Northern areas should see isolated showers. Temperatures will average below normal. The Canadian Prairies should see scattered showers. Temperatures should average below normal.
Chart Analysis: Trends in Chicago are down with objectives of 504 December. Support is at 537, 530, and 524 December, with resistance at 573, 585, and 590 December. Trends in Kansas City are down with objectives of 570 and 414 December. Support is at 606, 600, and 594 December, with resistance at 632, 649, and 663 December. Trends in Minneapolis are mixed to down with objectives of 708 and 691 December . Support is at 703, 696, and 693 December, and resistance is at 731, 739, and 746 December.Image Source: UnsplashRICE
General Comments: Rice closed near unchanged in consolidation trading and pries are still in an uptrend. Futures had been consolidating the gains made the previously in early week trading, then exploded higher once again before consolidating again yesterday. Demand reports have been strong for the last couple of week and have featured traditional buyers in Latin America and Asia ad some nontraditional buyers as well. The weekly export sales report showed very strong demand from Latin America and Asia. The daily and weekly chart trends are still up.
Overnight News: The Delta should get isolated showers, mostly near the Gulf coast. Temperatures should be above normal.
Chart Analysis: Trends are up with no objectives. Support is at 1684, 1664, and 1658 January and resistance is at 1748, 1760, and 1772 January.CORN AND OATS
General Comments: Corn closed a little higher in sympathy with the strong rally in Soybeans. Ideas of weak demand are keeping prices low over all. Oats closed a little higher in consolidation trading. It is still hot and dry in central and northern Brazil and in Argentina although some beneficial rains have been reported in Argentina and a few showers are reported in central and northern Brazil. Southern Brazil is much too wet. These patterns could change this week as forecasts call for significant precipitation in central and northern Brazl and drier conditions to the south. The patterns could shift again the following week to hot and dry in the north and too much rain in the south, but the second week forecast is a long way off and very subject to change.
Overnight News: Mexico bought 104,000 tons of U.S. Corn.
Chart Analysis: Trends in Corn are mixed. Support is at 461, 458, and 452 December, and resistance is at 480, 506, and 507 December. Trends in Oats are mixed. Support is at 333, 325, and 322 December, and resistance is at 363, 371, and 374 December.SOYBEANS
General Comments: Soybeans and the products closed higher yesterday as drought continued in central and northern Brazil and too much rain was reported for southern Brazil. There are some forecasts for scattered showers and rains this week in central and northern Brazil and drier conditions in the south. It could be a pattern change but current forecasts call for rains to move south again and dry conditions to return to the north the following week. That is a long way off and no one dan br sure as to what will happen. Soybean Oil was higher as disappearance was very high in the NOPA reports issued in the middle of last week. Soybean Oil appears to be completing a bottom on the daily charts. The weekly export sales report for Soybeans was very strong and strong sales have been reported to China. The trade remains concerned about the weather forecasts for South America. Brazil remains mostly hot and dry in northern areas and too wet in southern areas. These weather trends are expected to continue after next week.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1350, 1336, and 1331 January, and resistance is at 1369, 1394, and 1398 January. Trends in Soybean Meal are mixed. Support is at 451.00, 440.00, and 439.00 December, and resistance is at 464.00, 475.00, and 479.00 December. Trends in Soybean Oil are mixed to up with objectives of 5400, 5620 and 5690 December. Support is at 5120, 4980, and 4900 December, with resistance at 5360, 5430, and 5510 December.CANOLA AND PALM OIL
General Comments: Palm Oil was higher along with the price action in Chicago Soybean Oil and on ideas of stronger demand for Palm. Futures also closed higher today despite weker export data. Production was high in the MPOB reports released over a week ago but this was expected. The strong demand was not expected and came from China and other buyers. Private surveyors showed that the strong demand continues for the month to date. Trends are mixed on the daily charts but are quietly turning up on the weekly charts. Canola closed higher yester on the weather in Brazil. Current forecasts call for drier weather ion southern Brazil and wetter weather in central and northern areas this week, then a return to wet in the south and dry in the north the following week. The crop is harvested and it is in bins, so it will take some price movement to get new farm sales. Trends are mostly up on the daily charts in this market.
Overnight News:
Chart Analysis: Trends in Canola are mixed to up with objectives of 743.00 and 775.00 January. Support is at 697.00, 691.00, and 694.00 January, with resistance at 725.00, 731.00, and 737.00 January. Trends in Palm Oil are mixed to up with objectives of 4070 and 4290 February. Support is at 3900, 3880, and 3820 February, with resistance at 4040, 4070, and 4130 February.Midwest Weather Forecast Mostly dry. Temperatures should average above normal.More By This Author:Softs Report – Monday, Nov. 20Grains Report – Friday, Nov. 17Softs Report – Wednesday, Nov. 15


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