WHEAT
General Comments: Wheat markets were mostly lower yesterday as the Winter Wheat harvest is underway. Only a few nearby months of Chicago Wheat managed to close higher. What prices shot higher in early trading as reports surfaced that Russia had bombed the export terminals of Binge and Viterra in Ukraine. The realization that this news might not lead to more demand for US Wheat and weaker world cash prices took futures down for the rest of the day. The harvest was 25% complete in Tuesday USDA data and were considered within expectations. Futures should form a harvest low earlier in the harvest due to the small crop size. Yield reports have been weakening in Kansas despite recent rains that have helped kernel size and test weight. USDA noted lower conditions for the Winter Wheat crops on Monday and noted Spring Wheat planting remained far behind average. The US western Great Plains got some rainfall and the rains fell in some of the areas most in need of some precipitation. Hot and dry weather is back for this week to southern areas while northern areas have more moderate weather. It is turning warmer and drier farther north to give hope to Spring Wheat farmers that they can plant crops. Europe is too hot and dry and India and Pakistan are both past major heat waves and dry conditions.
Overnight News: The southern Great Plains should get mostly dry conditions or isolated showers. Temperatures should average near to above normal. Northern areas should see isolated showers or dry conditions. Temperatures will average near to above normal. The Canadian Prairies should see isolated to scattered showers. Temperatures should average near to above normal.
Chart Analysis: Trends in Chicago are down with objectives of 949 and 868 July. Support is at 960, 943, and 851 July, with resistance at 1027, 1044, and 1085 July. Trends in Kansas City are down with objectives of 1079 and 1008 July. Support is at 1026, 1004, and 987 July, with resistance at 1092, 1132, and 1153 July. Trends in Minneapolis are down with objectives of 1083 July. Support is at 1096, 1071, and 1018 July, and resistance is at 1150, 1170, and 1190 July.

Photo by Maddi Bazzocco on Unsplash

RICE
General Comments: Rice was higher yesterday after trading lower early in the day. It became a reversal type of trade with the late rally. Ideas are that the good export sales reported last week were just a bump and reports indicate that domestic demand is a little soft, too. Growing conditions are said to be deteriorating due to hot and dry weather in Texas expanding to include Arkansas. There are still ideas of less production of US Rice this year. The emergence remains behind and acreage estimates are still down for the next crop. Some traders note that it will be difficult to move Rice at current price levels and they are worried about domestic and export demand moving forward.
Overnight News: The Delta should get mostly dry conditions. Temperatures should be above normal.
Chart Analysis: Trends are mixed to down with objectives of 1582, 1580, and 1532 July. Support is at 1601, 1594, and 1591 July and resistance is at 1641, 1661, and 1672 July.

CORN AND OATS
General Comments: Corn closed mostly lower on outlooks for less hot and still dry weather for the current week. July was higher as some demand for Corn must have surfaced. Corn has emerged under what is considered good conditions but it has been hot in the Midwest. More moderate temperatures are forecast for the rest of the week and the weekend. This will be good for a while but continued hot and dry weather could hurt yields down the road. Stress could start to de4velop next week if the hot and dry weather returns as forecast. The weather was variable last week with periods of rain and cool temperatures and then warm and dry conditions and hot and dry weather is expected early this week before the temperatures moderate. Many think the top end of the yield has been taken off the Corn crop due to the delayed planting but others look at the crop condition rating and expect improved yields. It already thinks there is reduced planted area because of the March planning intentions reports from USDA and the bad planting weather.
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 752, 726, and 721 July, and resistance is at 778, 782, and 800 July. Trends in Oats are down with objectives of 601, 598, and 573 July Support is at 607, 597, and 586 July, and resistance is at 633, 651, and 655 July.

SOYBEANS
General Comments: Soybeans and the products were lower as hot and dry weather invades the US. The heat is passing now and it will be less hot but still dry for the rest of the week. US cash market is still running low on Soybeans but there are still renewed Chinese lockdowns. There is less Chinese demand for Soy products due to the lockdowns there and China is starting to renew the lockdowns now as Covid cases have risen in number. China has been a major buyer of US Soybeans this year after a very slow start due to the problems in South America. They are buying for this year and already have booked a large amount of new crop Soybeans to cover future needs. Most of the current buying is for next year.
Overnight News:
Chart Analysis: Trends in Soybeans are down with objectives of 1608 July. Support is at 1645, 1640, and 1632 July, and resistance is at 1682, 1692, and 1701 July. Trends in Soybean Meal are mixed to up with objectives of 442.00 July. Support is at 427.00, 425.00, and 419.00 July, and resistance is at 440.00 450.00, and 461.00 July. Trends in Soybean Oil are down with objectives of 6910 July. Support is at 7000, 6810, and 6750 July, with resistance at 7440, 7510, and 7680 July.

CANOLA AND PALM OIL
General Comments: Palm Oil closed higher today on what was called speculative short covering. Export reports from the private sources are showing the weaker demand this month. The Indonesian government is now imposing a revised tax scheme on exporters to increase export sales and is allowing more export permits to be issued. Some analysts think Palm Oil is topping out anyway due to reduced demand ideas. Hopes for better demand from India keep the market supported, but Chinese demand could be less. A new Covid outbreak is reported in China and cities and infrastructure has been shut down, including some airports and water ports. The economy could slow down and affect demand. Production from Malaysia is expected to increase as well as the Covid lockdowns finally go away and as the weather is good for production. Canola was sharply lower along with other vegetable oils markets. Ideas of poor demand have hit this market as well as the others. The crops are going in the ground and the growing conditions are much improved. It is reported to be very dry and has been cold for planting but better planting weather is coming now as it is now much warmer. There are ideas of reduced Sunflower export potential from Russia and Ukraine. The market is worried about South American production as well. Canada produced a very short crop of Canola last year so supplies are tight.
Overnight News:
Chart Analysis: Trends in Canola are down with no objectives. Support is at 926.00, 922.00, and 893.00 July, with resistance at 959.00, 980.00, and 995.00 July. Trends in Palm Oil are down with no objectives. Support is at 4460, 4400, and 4360 September, with resistance at 4710, 4860, and 4980 September.