WHEAT

General Comments:  Futures closed lower yesterday in sympathy with the weakness in world financial markets, but held fairly well due to more reports of lower than expected yields for Spring Wheat.  Wheat finding its way into feed rations in an increasing way.  The current Corn weather and the prices imply that these trends will continue.  Weather forecasts for dry and warm weather in Texas and Oklahoma continue for the week, and more rain will be needed soon for planting of the Fall crops.  Some showers are in the forecast for the Texas Panhandle for the weekend.  Crops in the Northern Plains and into Canada should be in mostly good condition, and showers remain in the forecasts in both areas.  However, yield reports do not appear strong for Spring Wheat so far.  Charts show that the trends are turning up after the price action this week, but Kansas City and Chicago fell back into ranges yesterday.

Overnight News:  Mostly dry conditions are expected in the southern Great Plains, but central areas could see some showers and storms into next week and northern areas could see light precipitation this weekend.  Temperatures should average above to much above normal in the south, but near normal in the north.  The Canadian Prairies should get mostly dry conditions.   Temperatures will average near normal.  Gulf basis levels are steady for Soft Red Winter Wheat and steady for Hard Red Winter Wheat.

Chart Analysis: Trends in Chicago are mixed.  Support is at 690, 677, and 670 September, with resistance at 721, 733, and 739 September.  Trends in Kansas City are mixed.  Support is at 795, 789, and 762 September, with resistance at 812, 832, and 851 September.  Trends in Minneapolis are up with objectives of 938 and 1036 September.  Support is at 895, 875, and 872 September, and resistance is at 923, 932, and 938 September.

RICE

General Comments: Prices were lower yesterday in sympathy with other commodities and financial markets.  More news of strong prices in Vietnam and Thailand and ideas of poor production here provided some support during the day.  The market remains concerned about the quality and yields potential for the Rice crop here this year.  The temperatures have moderated in the Mid South, but the region is still not getting a lot of rain, although there has been some.  Texas and Louisiana are in harvest, with good yields being reported in both states.  Cash markets are reported to be steady in Arkansas.  New crop bids have also been steady.  Cash markets in Texas and Louisiana appear steady to firm.  Futures remain well above cash prices.  Trends are generally up on the charts, but turned mixed for the short term with the price action yesterday.

Overnight News: Some showers are possible in Mid South and Delta areas off and on this week.  Temperatures will average near to above normal.  

Chart Analysis:  Trends are mixed.  Support is at 1675, 1669, and 1657 September, and resistance is at 1700, 1710, and 1719 September.

 

CORN AND OATS

General Comments:   Corn and Oats were lower on selling tied to weakness in world financial markets.  Increasing ideas of crop losses continued to provide some support.  There is increasing talk of yield loss due to the rapid progress of the crop.  Corn losses are certain this year from the hot and dry weather seen in July, but no one is sure just how big the losses will be.  Forecasts call for near normal temperatures and some beneficial precipitation for most areas over the next week or two to help keep yields from falling further.  Better weather now would help improve yield potential, but some losses are still expected.  The question now is just how big those losses are.  Oats are being harvested, so warmer and drier weather will enhance progress.  However, condition ratings are still down.

Overnight News:  Basis was weaker at the Gulf of Mexico.  Japan bought 140,000 tons of US Corn overnight.  The Pro Farmer Crop Tour is next week. 

Chart Analysis:  Trends in Corn are mixed.  Support is at 693, 688, and 684 September, and resistance is at 708, 715, and 721 September.  Trends in Oats are mixed.  Support is at 340, 336, and 335 September, and resistance is at 347, 352, and 356 September.

SOYBEANS AND PRODUCTS                     

General Comments:  Soybeans and products were lower along with weakness seen in most other commodities and financial markets.  Overall Midwest weather is mixed for Soybeans development and production potential.  Wetter weather in the northern and central Midwest last weekend has aided in crop development, and better conditions are noted now in the south.  However, about a third of the region missed out on any meaningful precipitation at all, so there are still problems out there.  Weather forecasts still offer hopes for improved growing conditions in the Midwest with temperatures closer to normal and some showers and storms in most areas today and this weekend, but there is still no soaking rain for the entire region.  Charts show that trends are mixed. 

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

Chart Analysis:  Trends in Soybeans are mixed.  Support is at 1336, 1327, and 1320 September, and resistance is at 1359, 1369, and 1375 September.  Trends in Soybean Meal are mixed.  Support is at 349.00, 348.00, and 345.00 September, and resistance is at 356.00, 358.00, and 365.00 September.  Trends in Soybean Oil are mixed.  Support is at 5400, 5370, and 5320 September, with resistance at 5540, 5640, and 5740 September.

CANOLA AND PALM OIL                                                                                                                                       

General Comments:  Canola was lower on the back of the selling in Chicago and the weakness in world financial markets.  Reports of good domestic processor demand continue.  Speculators were the best traders on both sides, but it was a light volume trade.  Reports of cold weather in Alberta provided the main support.  Some selling was seen as traders anticipate a big harvest soon and as export demand seems slow.  Crusher demand is said to be more active.  Cash movement by farmers is reported slow this week as the farmers prepare for the new crop harvest.  Most crops appear to be in good condition.  Palm Oil was a little lower today on what appeared to be speculative long liquidation tied to the outside markets and world economic concerns.

Overnight News:  

Chart Analysis:  Trends in Canola are mixed.  Support is at 551.00, 546.00, and 532.00 November, with resistance at 557.00, 560.00, and 565.00 November.  Trends in Palm Oil are mixed.  Support is at 2990, 2960, and 2895 November, with resistance at 3050, 3065, and 3085 November.

Midwest Weather:   Showers over the weekend.  Temperatures will average near normal.