Markets

MORNING GRAINS COMMENTS

WHEAT

General Comments: Futures closed lower again yesterday in response to reports of beneficial rains in Europe and ideas of strong offers from Russia. Also hurting Wheat was the big selling by funds in response to the European economic problems and more extreme weakness seen in Corn futures. The European issues supported a big rally in the US Dollar. The US harvest is well underway, with harvesters making rapid progress in the central and southern Great Plains. Progress has been slower in Kansas due to showers there. The drought in Texas and Oklahoma and other weather worries continue to provide support. Midwest and Mid South Wheat crops have been going downhill due to too much rain, and planting of Spring Wheat crops has been a big problem in the Northern Plains and Canadian Prairies. More rain was seen in the Dakotas and Minnesota yesterday. Weather forecasts for dry and warm weather in Texas and Oklahoma continue. More rain is forecast for Europe in the next few days. Charts show that the trends are down.

Overnight News: Mostly dry conditions are expected in the southern Great Plains, but northern areas could see precipitation this weekend. Temperatures should average near to above normal. The Canadian Prairies should get periods of light precipitation through the weekend. Temperatures will average near to above normal. Gulf basis levels are steady to firm for Soft Red Winter Wheat and steady for Hard Red Winter Wheat.

Chart Analysis: Trends in Chicago are down with objectives of 654 July. Support is at 660, 647, and 641 July, with resistance at 684, 691, and 701 July. Trends in Kansas City are down with no objectives. Support is at 775, 732, and 716 July, with resistance at 810, 828, and 845 July. Trends in Minneapolis are down with objectives of 835 and 685 July. Support is at 894, 888, and 884 July, and resistance is at 918, 932, and 965 July.

RICE

General Comments: Prices were lower again yesterday on speculative selling tied to weakness seen in most commodities markets and the European economic issues. World production and prices remain a concern, and those prices have been soft. Weather and poor growing conditions in the US remain important, but overall crop ratings improved last week to take away some of the bullish influence. Producers continue to work, but it has turned hot and dry in many areas. Forecasts call for warm and dry conditions to continue into the weekend. Some switching can be expected in the Mid South to Soybeans. Texas crops appear to be mostly fair, but overall crops showed good improvement. It has been very dry there, so irrigation is being used. Chart trends are down for the short term.

Overnight News: Mostly dry in the Mid South, dry along the Gulf Coast. Temperatures will average above normal.

Chart Analysis: Trends are down with objectives of 1390 July. Support is at 1390, 1383, and 1369 July, and resistance is at 1427, 1435, and 1440 July.

CORN AND OATS

General Comments: Corn and Oats were lower yesterday on weather and fund selling seen in most commodities yesterday. Much of the selling was in response to the economic problems seen in Europe. Basis levels remain firm, but Gulf basis levels remain stable with no particular reports of strong demand so far this week. Warm and drier are likely for this weekend after some precipitation the last couple of days. Overall conditions appear to be improving. Corn planting is now mostly done in the western Corn Belt, but progress there will continue to be slow in the east and many farmers may now look to plant other crops such as Soybeans. Cool and wet weather in the northern Great Plains, Canadian Prairies, and parts of the Midwest continue to delay Oats development, but warmer weather this week will allow for progress. Nearby Corn futures could still trade at or above $8.00 per bushel, especially if good weather is not seen during the rest of US growing season. September could be the strongest month if weather remains cool and progress remains slow. Supplies could be very tight by then. Trends are down for now.

Overnight News: Basis was steady at the Gulf of Mexico and steady to firm in the Midwest. South Korea bought 138,000 tons of Corn.

Chart Analysis: Trends in Corn are down with objectives of 675 and 618 July. Support is at 692, 659, and 654 July, and resistance is at 727, 730, and 737 July. Trends in Oats are down with objectives of 350, 321, and 304 July. Support is at 354, 350, and 336 July, and resistance is at 361, 371, and 379 July.

SOYBEANS AND PRODUCTS

General Comments: Soybeans and products closed lower yesterday on weakness in most commodities markets and the European crisis. There was no real bullish news for Soybeans bulls. The weather for this weekend looks warmer and drier for most growing areas. Demand does not seem that strong. Upside price potential would still appear to be more limited than that for Corn or Wheat or Rice. Ideas of strong production in South America and the potential for production and planted area here in the US to increase are negative, and Chinese buyers appear quiet right now. South America has plenty of production and has been offering, but activity there seems slow. Charts show that trends are down.

Overnight News: Basis levels are steady at the gulf. Gulf Soybean Meal basis is steady. Midwest basis levels were steady to firm.

Chart Analysis: Trends in Soybeans are down with objectives of 1339 and 1299 July. Support is at 1342, 1313, and 1307 July, and resistance is at 1353, 1355, and 1360 July. Trends in Soybean Meal are down with objectives of 349.00, 342.00, and 341.00July. Support is at 351.00, 349.00, and 345.00 July, and resistance is at 364.00, 366.00, and 368.00 July. Trends in Soybean Oil are down with objectives of 5600 and 5430 July. Support is at 5560, 5510, and 5485 July, with resistance at 5640, 5710, and 5740 July.

CANOLA AND PALM OIL

General Comments: Canola was lower yesterday on liquidation selling tied to price action in Chicago. Demand seems to have dried up. Planting progress remains very slow in Canada. Rains are forecast for Europe again this week to improve things there. France and England remain dry. A slow planting pace remains the primary support here. Palm Oil was a little higher in consolidation trading and after a big down week. Positive export data from private sources provided support as did ideas of increasing demand for the short term. Weakness in Chicago is hurting price action here. Trends are down.

Overnight News:

Chart Analysis: Trends in Canola are mixed to down with objectives of 570.00, 553.00, and 536.00 July. Support is at 580.00, 569.00, and 564.00 July, with resistance at 589.00, 600.00, and 603.00 July. Trends in Palm Oil are down with objectives of 3100 September. Support is at 3185, 3150, and 3130 September, with resistance at 3210, 3330, and 3395 September.

Midwest Weather: Scattered showers over the weekend. Temperatures will average near to below normal.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities

Latest Markets Videos