Grains Report 05/24/2024

WHEAT
General Comments: Wheat was higher in all three markets on adverse world growing conditions. There were no more reports of frosts and freezing temperatures in Russian growing areas. It has also been very dry there. In addition, Ukraine sent drones to several Russian ports, including grains ports, to disrupt the export pace and cost Russia money. The weather is still a key, with extreme dryness reported in Russia and parts of the US and too wet conditions reported in Europe. Big world supplies and low world prices are still around. Export sales remain weak on competition from Russia, Ukraine, and the EU as those countries look to export a lot of Wheat in the coming period. Black Sea offers are still plentiful.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be above normal. Northern areas should see mostly dry conditions. Temperatures will average above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 676, 647, and 632 July, with resistance at 706, 712, and 717 July. Trends in Kansas City are mixed. Support is at 685, 660, and 640 July, with resistance at 719, 722, and 728 July. Trends in Minneapolis are mixed. Support is at 729, 710, and 700 July, and resistance is at 752, 758, and 764 July.

RICE
General Comments: Rice closed lower yesterday on speculative selling tied to weaker demand ideas. The futures market overall remained in a short term trading range but at the low end of the range. Support comes from adverse weather in South American growing areas while new selling is noted from the potential for a big crop in the US. The big US crops are now in doubt from reports of extreme rains in southern growing areas and especially near Houston. Supply tightness is expected to give way to increased production this year and greatly increased supplies this Fall. These ideas are reflected in the prices seen in the old crop and the new crop.
Overnight News:
Chart Analysis: Trends are down with no objectives. Support is at 1854, 1827, and 1785 July and resistance is at 1918, 1948, and 1954 July.

CORN AND OATS
General Comments: Corn and Oats closed her yesterday with Corn higher on the back of strong weekly export sales. The weather in the Midwest has been very wet and more rains are coming to cause planting delays but to allow for rapid development of planted crops. The Argentine crop has been hit by stunting disease that robs yields and the Brazil Winter crop is suffering from hot and dry weather. Demand has been the driving force behind the rally but now South American weather is a driving force. Increased demand was noted in most domestic categories along with rising basis levels, and export demand has been strong. Ethanol demand has turned less due to weaker petroleum prices seen lately. There is very dry weather for the Winter crops in central and northern Brazil
Overnight News:
Chart Analysis: Trends in Corn are mixed. Support is at 450, 444, and 440 July, and resistance is at 467, 475, and 483 July. Trends in Oats are down with no objectives. Support is at 362, 357, and 350 July, and resistance is at 383, 390, and 403 July.

SOYBEANS
General Comments: Soybeans and the products closed lower yesterday on the weekly export sales report that showed less than expected demand for US Soybeans. There were wire reports that China had bought two to four cargos of US Soybeans in recent days. Brazil basis levels are very strong and US products now compare favorably in price to those from South America. Support for Soybeans came from reports of excessive rains falling in US growing areas, especially the eastern sections of the Midwest. Domestic demand has been strong in the US but has suffered as crushers were crushing for oil. Oil demand has suffered as cheaper alternatives for feedstocks hit the bio fuels market.
Overnight News:
Chart Analysis: Trends in Soybeans are mixed. Support is at 1231, 1220, and 1210 July, and resistance is at 1250, 1256, and 1260 July. Trends in Soybean Meal are mixed. Support is at 365.00, 361.00, and 350.00 July, and resistance is at 388.00, 390.00, and 396.00 July. Trends in Soybean Oil are mixed. Support is at 4470, 4470, and 4420 July, with resistance at 4690, 4780, and 4880 July.

CANOLA AND PALM OIL
General Comments: Palm Oil was higher today on Chicago price action.. There is also talk of increased supplies available to the market, but the trends are turning mixed on the daily and weekly charts. Canola was higher.
Overnight News:
Chart Analysis: Trends in Canola are mixed to up with objectives of 688.00 and 723.00 July. Support is at 655.00, 646.00, and 639.00 July, with resistance at 672.00, 678.00, and 684.00 July. Trends in Palm Oil are mixed. Support is at 3870, 3820, and 3760 August, with resistance at 3990, 4040, and 4210 July.

Midwest Weather Forecast Scattered showers and storms. Temperatures should average above normal.

Corn HRW SRW Soybeans Soybean Meal Soybean Oil
May 55 May 150 May
50 May
60 May

June 48 July 135 July 40 July 54 July

July 50 July 135 July 40 July 60 July

DJ Malaysian PM Cash Market Prices for Palm Oil – May 24
The following are prices for Malaysian palm oil in the cash market at 1000 GMT Friday, supplied by commodity broker Matthes & Porton Bhd.
Prices are quoted in U.S. dollars a metric ton, except for crude palm oil and palm kernel oil, which are in ringgit a ton. Palm kernel oil prices are in ringgit a pikul, a Malaysian measurement equivalent to 60 kilograms.
Refined, bleached and deodorized palm oil, FOB, Malaysian ports
Offer Change Bid Change Traded
Jun 860.00 -07.50 Unquoted – –
Jul/Aug/Sep 862.50 -05.00 Unquoted – –
Oct/Nov/Dec 867.50 -07.50 Unquoted – –
RBD palm olein, FOB, Malaysian ports
Offer Change Bid Change Traded
Jun 865.00 -07.50 Unquoted – –
Jul/Aug/Sep 867.50 -05.00 Unquoted – –
Oct/Nov/Dec 872.50 -07.50 Unquoted – –
RBD palm stearin, FOB, Malaysian ports
Offer Change Bid Change Traded
Jun 882.50 -05.00 Unquoted – –
Palm Fatty Acid Distillate, FOB Malaysian ports
Offer Change Bid Change Traded
Jun 817.50 -05.00 Unquoted – –
Crude palm oil, Delivered Basis, South Malaysia
Offer Change Bid Change Traded
Jun 3,920.00 -30.00 Unquoted – –
Palm kernel oil, Delivered Basis, South Malaysia
Offer Change Bid Change Traded
Jun 287.00 -02.00 Unquoted – –
($1=MYR4.708)

DJ China Dalian Grain Futures Closing Prices, Volume – May 24
Soybean No. 1
Turnover: 99,748 lots, or 4.67 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
Jul-24 4,689 4,702 4,672 4,673 4,678 4,686 8 74,135 104,573
Sep-24 4,668 4,680 4,654 4,654 4,663 4,667 4 21,156 45,526
Nov-24 4,619 4,628 4,607 4,607 4,621 4,620 -1 843 6,817
Jan-25 4,618 4,622 4,597 4,597 4,612 4,612 0 3,365 11,449
Mar-25 4,603 4,614 4,593 4,593 4,606 4,604 -2 235 875
May-25 4,614 4,623 4,613 4,614 4,613 4,617 4 14 85
Corn
Turnover: 591,670 lots, or 14.62 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
Jul-24 2,476 2,482 2,459 2,462 2,474 2,469 -5 393,395 573,112
Sep-24 2,490 2,498 2,480 2,485 2,493 2,488 -5 146,031 491,140
Nov-24 2,445 2,448 2,429 2,436 2,446 2,437 -9 22,634 227,189
Jan-25 2,431 2,436 2,420 2,426 2,434 2,427 -7 23,480 155,251
Mar-25 2,439 2,441 2,427 2,432 2,439 2,434 -5 5,663 27,895
May-25 2,473 2,479 2,465 2,470 2,473 2,474 1 467 665
Soymeal
Turnover: 2,032,079 lots, or 73.37 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
Jul-24 3,530 3,554 3,471 3,474 3,510 3,510 0 57,338 103,051
Aug-24 3,630 3,652 3,569 3,572 3,607 3,611 4 38,431 83,070
Sep-24 3,641 3,659 3,585 3,589 3,613 3,624 11 1,747,014 2,294,023
Nov-24 3,649 3,670 3,605 3,607 3,628 3,639 11 31,489 399,957
Dec-24 3,619 3,641 3,573 3,578 3,596 3,600 4 2,668 40,865
Jan-25 3,566 3,584 3,515 3,521 3,540 3,549 9 125,607 341,427
Mar-25 3,371 3,388 3,338 3,340 3,352 3,363 11 6,849 29,652
May-25 3,211 3,221 3,194 3,198 3,198 3,206 8 22,683 74,050
Palm Oil
Turnover: 884,974 lots, or 67.54 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
Jun-24 7,682 7,748 7,646 7,650 7,684 7,702 18 482 1,184
Jul-24 7,630 7,690 7,562 7,604 7,616 7,640 24 5,957 8,819
Aug-24 7,614 7,670 7,550 7,592 7,590 7,622 32 284 1,104
Sep-24 7,648 7,692 7,552 7,588 7,610 7,630 20 828,493 560,724
Oct-24 7,644 7,686 7,568 7,592 7,620 7,638 18 265 540
Nov-24 7,662 7,698 7,582 7,598 7,622 7,640 18 76 637
Dec-24 7,666 7,702 7,582 7,598 7,634 7,644 10 63 367
Jan-25 7,682 7,718 7,578 7,610 7,640 7,654 14 48,730 103,762
Feb-25 7,706 7,710 7,606 7,608 7,632 7,652 20 23 131
Mar-25 7,690 7,718 7,588 7,630 7,644 7,656 12 218 1,387
Apr-25 7,722 7,730 7,628 7,634 7,672 7,696 24 23 164
May-25 7,634 7,696 7,592 7,630 7,628 7,638 10 360 626
Soybean Oil
Turnover: 748,797 lots, or 6.01 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
Jul-24 7,946 8,012 7,862 7,882 7,942 7,924 -18 5,330 15,915
Aug-24 8,004 8,058 7,918 7,938 7,990 7,962 -28 9,641 26,832
Sep-24 8,066 8,110 7,956 7,978 8,026 8,026 0 664,161 777,668
Nov-24 8,034 8,106 7,968 7,992 8,028 8,032 4 1,227 7,289
Dec-24 8,130 8,170 8,034 8,054 8,096 8,098 2 161 1,775
Jan-25 8,122 8,176 8,032 8,056 8,104 8,098 -6 64,312 162,954
Mar-25 7,976 8,002 7,876 7,896 7,948 7,930 -18 298 3,340
May-25 7,828 7,886 7,782 7,802 7,838 7,822 -16 3,667 4,661
Notes:
1) Unit is Chinese yuan a metric ton;
2) Ch. is day’s settlement minus previous settlement;
3) Volume and open interest are in lots;
4) One lot is equivalent to 10 metric tons.

Questions? Ask Jack Scoville today at 312-264-4322