Grains Report 08/23/2024

WHEAT
General Comments: Wheat was lower in all three markets on stable overseas prices reported in Russia and Europe against the wrap up of the Wheat harvest and reports of cash movement here in the US. US harvest progress and ideas of good crops went against reports of dry weather in eastern Europe and Russia and too wet weather in France and Germany along with Spring Wheat areas of Russia are still heard and the weather there affecting world production estimates. There were more reports of dry conditions coming this week to Russian growing areas although Spring Wheat areas have seen too much rain. Eastern Europe is also hot and dry. Western Europe has seen too much rain.
Overnight News:
Chart Analysis: Trends in Chicago are down with no objectives. Support is at 502, 496w, and 490 September, with resistance at 524, 536, and 548 September. Trends in Kansas City are down with no objectives. Support is at 521, 516, and 510 September, with resistance at 540, 559, and 567 September. Trends in Minneapolis are down with no objectives. Support is at 562, 556, and 550 September, and resistance is at 584, 601, and 613 September.

RICE
General Comments: Rice closed higher yesterday on what appeared to be speculator buying as the harvest moves along to completion. The US weather has been an issue much of the growing season with too much rain early in the year. Some areas are now too dry, especially in Texas, and Texas yields are down as a result as the harvest moves forward. However, planted area has increased from last year and so most are looking for a rebound in production this year
Overnight News:
Chart Analysis: Trends are mixed. Support is at 1471, 1453, and 1449 September and resistance is at 1504, 1509, and 1516 September

CORN AND OATS
General Comments: Corn and Oats closed lower yesterday on what appeared to be speculative selling. The Pro Farmer crop tour has concluded and found good Corn and Soybeans crops in Iowa and Minnesota. Yields for both states were calculated to be slightly below USDA estimates. Increased US demand comes from the fact that Corn prices are already the cheapest in the world. Current forecasts call for cooler and drier weather for the Midwest this week.
Overnight News:
Chart Analysis: Trends in Corn are down with no objectives. Support is at 367, 364, and 361 September, and resistance is at 385, 390, and 402 September. Trends in Oats are mixed. Support is at 313, 308, and 300 September, and resistance is at 336, 348, and 358 September

SOYBEAN
General Comments: Soybeans and the products were lower yesterday on speculative short covering generated by a stronger demand news and news from the Pro Farmer crop tour. Trader reported good production potential from the Pro Farmer crop tour in Iowa and Minnesota. Pod counts were a little below current USDA estimates. This week should be dry and temperatures should turn warmer later this week amid dry weather and western areas should stay warm and dry. Reports indicate that China is buying a lot in the US. Domestic demand has been strong in the US.
Overnight News: Unknown destinations bought 120,000 tons of US Soybeans.
Chart Analysis: Trends in Soybeans are mixed. Support is at 939, 928, and 916 September, and resistance is at 973, 1007, and 1018 September. Trends in Soybean Meal are mixed. Support is at 302.00, 300.00, and 297.00 September, and resistance is at 323.00, 325.00, and 329.00 September. Trends in Soybean Oil are mixed. Support is at 3970, 3860, and 3800 September, with resistance at 4130, 4190, and 4360 September.

PALM OIL AND CANOLA
General Comments: Palm Oil was higher today on ideas of improving demand as Indonesia intends to increase its use of Palm Oil in its biofuels blends and increase biofuels zto 40% of consumption. Production reports indicate that the increase in production is less than expected at this time. Indian imports of Palm Oil were the highest for the year in July. Exports are 834,948 tons so far this month. Reports indicate that production is rising as well. Export demand has been very strong in recent private reports but has been weaker in recent days. There is talk of increased supplies available to the market, and the trends are down on the daily charts. Canola was lower on ideas of increasing producer offers as oilseed supplies look to be ample in the coming year and as demand ideas are down. The Canadian rail strioke makes movement of grain much more difficult and a lot will get backed up in the system. The weather has called for dry conditions in the Prairies and yields are expected to be the same or less.
Overnight News:
Chart Analysis: Trends in Canola are mixed to down with no objectives. Support is at 562.00, 558.00, and 546.00 November, with resistance at 588.00, 581.00, and 598.00 November. Trends in Palm Oil are mixed. Support is at 3670, 3640, and 3610 November, with resistance at 3780, 3810, and 3820 November.

Midwest Weather Forecast Mostly dry. Temperatures should average near to below normal.

DJ Malaysian PM Cash Market Prices for Palm Oil – Aug 23
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
Sep 957.50 +10.00 Unquoted – –
Oct/Nov/Dec 922.50 +10.00 Unquoted – –
Jan/Feb/Mar 917.50 +12.50 Unquoted – –
Apr/May/Jun 907.50 +12.50 Unquoted – –
RBD palm olein, FOB, Malaysian ports
Offer Change Bid Change Traded
Sep 962.50 +10.00 Unquoted – –
Oct/Nov/Dec 927.50 +10.00 Unquoted – –
Jan/Feb/Mar 922.50 +12.50 Unquoted – –
Apr/May/Jun 912.50 +12.50 Unquoted – –
RBD palm stearin, FOB, Malaysian ports
Offer Change Bid Change Traded
Sep 977.50 +02.50 Unquoted – –
Palm Fatty Acid Distillate, FOB Malaysian ports
Offer Change Bid Change Traded
Sep 855.00 00.00 Unquoted – –
Crude palm oil, Delivered Basis, South Malaysia
Offer Change Bid Change Traded
Sep 4,000.00 +50.00 Unquoted – –
Palm kernel oil, Delivered Basis, South Malaysia
Offer Change Bid Change Traded
Sep 354.00 +07.00 Unquoted – –
($1=MYR4.374)

DJ China Dalian Grain Futures Closing Prices, Volume – Aug 23
Soybean No. 1
Turnover: 71,784 lots, or 3.04 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
Sep-24 4,456 4,457 4,427 4,429 4,456 4,443 -13 5,128 13,582
Nov-24 4,323 4,342 4,320 4,325 4,330 4,327 -3 4,813 26,604
Jan-25 4,216 4,230 4,209 4,213 4,225 4,219 -6 54,610 166,861
Mar-25 4,141 4,153 4,131 4,137 4,156 4,142 -14 4,900 17,483
May-25 4,189 4,199 4,180 4,183 4,205 4,189 -16 2,186 8,891
Jul-25 4,165 4,170 4,151 4,151 4,181 4,162 -19 147 1,349
Corn
Turnover: 606,289 lots, or 14.00 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
Sep-24 2,335 2,335 2,318 2,323 2,329 2,327 -2 43,900 82,850
Nov-24 2,323 2,326 2,307 2,312 2,311 2,314 3 393,608 631,921
Jan-25 2,300 2,302 2,287 2,292 2,287 2,292 5 124,037 434,096
Mar-25 2,274 2,279 2,264 2,274 2,265 2,270 5 25,460 130,252
May-25 2,318 2,320 2,306 2,310 2,304 2,310 6 12,186 47,908
Jul-25 2,316 2,320 2,309 2,313 2,306 2,313 7 7,098 18,111
Soymeal
Turnover: 1,306,968 lots, or 38.14 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
Sep-24 2,906 2,925 2,889 2,907 2,926 2,910 -16 103,624 218,662
Nov-24 2,940 2,961 2,934 2,936 2,964 2,947 -17 91,893 470,356
Dec-24 2,950 2,971 2,946 2,947 2,981 2,959 -22 6,127 88,053
Jan-25 2,931 2,958 2,928 2,929 2,963 2,942 -21 909,331 1,428,021
Mar-25 2,868 2,887 2,860 2,866 2,896 2,876 -20 8,397 99,279
May-25 2,789 2,802 2,777 2,782 2,811 2,790 -21 173,377 945,735
Jul-25 2,800 2,817 2,792 2,796 2,828 2,805 -23 9,136 93,216
Aug-25 2,905 2,920 2,894 2,899 2,924 2,909 -15 5,083 28,952
Palm Oil
Turnover: 733,505 lots, or 57.14 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
Sep-24 7,888 7,922 7,790 7,900 7,854 7,860 6 31,051 26,047
Oct-24 7,888 7,914 7,828 7,878 7,842 7,872 30 12,854 14,163
Nov-24 7,886 7,892 7,800 7,864 7,816 7,848 32 3,381 6,151
Dec-24 7,842 7,880 7,782 7,848 7,802 7,838 36 529 709
Jan-25 7,800 7,848 7,740 7,812 7,738 7,792 54 645,882 526,160
Feb-25 7,764 7,808 7,718 7,784 7,716 7,754 38 77 383
Mar-25 7,724 7,786 7,690 7,764 7,654 7,734 80 131 3,246
Apr-25 7,686 7,738 7,650 7,718 7,610 7,692 82 105 270
May-25 7,628 7,702 7,596 7,678 7,566 7,652 86 39,360 85,079
Jun-25 7,574 7,658 7,568 7,646 7,494 7,606 112 62 93
Jul-25 7,512 7,654 7,454 7,604 7,470 7,558 88 63 53
Aug-25 7,518 7,540 7,486 7,540 7,344 7,522 178 10 13
Soybean Oil
Turnover: 452,557 lots, or 33.61 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
Sep-24 7,440 7,446 7,384 7,400 7,430 7,420 -10 31,204 46,195
Nov-24 7,458 7,488 7,408 7,434 7,450 7,450 0 10,740 24,064
Dec-24 7,486 7,498 7,440 7,452 7,468 7,468 0 595 3,064
Jan-25 7,456 7,474 7,398 7,426 7,442 7,440 -2 377,808 620,923
Mar-25 7,386 7,410 7,360 7,372 7,380 7,384 4 124 4,356
May-25 7,252 7,280 7,212 7,246 7,242 7,252 10 32,021 165,720
Jul-25 7,262 7,282 7,244 7,282 7,248 7,254 6 61 483
Aug-25 7,288 7,322 7,284 7,284 7,308 7,296 -12 4 10
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