WHEAT
General Comments: Futures closed mostly a little lower on ideas that the EU has not yet found a path to survive its current economic crisis. It was a light volume session. Ideas of tight supplies here of high quality Wheat and ideas that the hard Red Winter Wheat crop will struggle to get planted in a timely way as it still has not rained all that much in areas of the central and southern Great Plains. Most farmers are planting in the Great Plains, but crops will struggle. USDA showed poor conditions in the reports Monday, implying poor production potential again this year. Yields and quality in Spring Wheat areas were hurt earlier in the season due to excessive rains. Traders will now pay more attention to the southern Great Plains as that is where most of the Wheat is and it is too dry there. Wheat is still finding its way into feed rations as many buyers do not want to pay the high prices for Corn. Wheat will see a lot of selling on any rally attempts as USDA world data shows that there is plenty around except for here in the US. But, demand problems for the US imply that supplies will be ample despite the short production. Wheat prices will need very strong domestic demand to hold rallies together. Charts show that Wheat trends are mixed.
Overnight News: Mostly dry conditions are expected in the southern Great Plains, although showers are possible about Wednesday. Northern areas could see mostly dry conditions. Temperatures should average near to above normal in the north and near to below normal in the south. The Canadian Prairies should get mostly dry conditions. Temperatures will average near to below normal. Gulf basis levels are weak for Soft Red Winter Wheat and steady to firm for Hard Red Winter Wheat. Egypt bought 120,000 of Russian Wheat.
Chart Analysis: Trends in Chicago are mixed to up with objectives of 674 and 716 December. Support is at 630, 620, and 605 December, with resistance at 650, 655, and 662 December. Trends in Kansas City are mixed to up with objectives of 777 and 829 December. Support is at 722, 718, and 715 December, with resistance at 739, 747, and 757 December. Trends in Minneapolis are mixed to up with objectives of 1020 December. Support is at 915, 903, and 896 December, and resistance is at 932, 934, and 937 December.

RICE
General Comments Prices were higher yesterday on follow through buying related to tight supplies here and around the world. News that EU finance ministers would not meet today only brought a little selling to Rice. Talk that Vietnam is temporarily sold out of Rice and the Thai problems with weather and prices helped bullish hopes that China could start to import from here. Philippines will reevaluate its import program for next year in light of recent and storms. Thailand floods have hurt Rice there and other crops as well, with the Rice Association there still estimating losses at 3.5 million tons of Paddy, and losses are expected in Cambodia as well. US weather will feature dry conditions in the Delta that should promote good harvest progress, although harvest is now about over. Central and South America have seen lots of Rain too. In contrast, parts of southern South America are in drought. Second crop Rice is being harvested near the Gulf Coast. Yield reports are mixed in Arkansas, but overall the reports are not showing any big disasters or any huge yields, either. Milling yields have not been good, but have not been too bad, either. US cash markets are reported to be steady in Arkansas. Cash markets in Texas and Louisiana appear steady.
Overnight News: Mostly dry conditions. Temperatures will average below normal.
Chart Analysis: Trends are up with objectives of 1788 and 1864 November. Support is at 1680, 1656, and 1652 November, with resistance at 1716, 1726, and 1761 November.

DJ USDA World Market Rice Prices – Oct 26
USDA today announced the prevailing world market prices
of milled and rough rice, adjusted for U.S. milling yields
and location, and the resulting marketing loan gain (MLG)
and loan deficiency payment LDP) rates.
—World Price— MLG/LDP Rate
Milled Value Rough Rough
($/cwt) ($/cwt) ($/cwt)
Long Grain 23.88 15.63 0.00
Medium/Short Grain 23.56 15.99 0.00
Brokens 16.90 — —

CORN AND OATS
General Comments: Corn was a little higher and Oats were lower as hopes for a resolution to the European crisis were hurt by a cancellation of the EU Finance Ministers meeting. Strength in Corn came mostly from strength in Crude Oil and on reports from a government connected Chinese analytical firm that said the country would need to import up to five million tons of Corn this marketing year. Farmers are almost done with the Soybeans harvest and will return to finish the Corn after he Soybeans are done. Harvest should be very active in western areas, and will become more active in the east as the fields dry down. Some yield reports are moving lower as the harvest progresses. Yields to the east of Illinois do not seem as strong, and western yields are starting to fade a little bit as the harvest there progresses. The cash market is steady, and cash market buyers have been easier to find with current prices, but sellers are not interested in selling very much. Ethanol producers were said to be the strongest bidders, and ethanol data released last week points to very strong demand from this sector for Corn. Weather forecasts point to faster progress again this week, but farmers are not selling much anyway and basis levels have been firming in the country. The lack of farmer selling has supported bull spreads.
Overnight News: Basis was weaker at the Gulf of Mexico.
Chart Analysis: Trends in Corn are mixed to up with objectives of 684 and 717 December. Support is at 647, 643, and 632 December, and resistance is at 655, 666, and 669 December. Trends in Oats are mixed. Support is at 336, 334, and 330 September, and resistance is at 340, 342, and 345 December.

SOYBEANS AND PRODUCTS
General Comments: Soybeans and products were lower as European economic crisis progress was hurt when the meeting of finance ministers scheduled for today was cancelled. Farmers are starting to wrap up the Soybeans harvest and will return to finish the Corn after he Soybeans are done. Soybeans are getting harvested and yield reports have been good to very good, but farmers do not feel like selling. The lack of selling has supported bull spreads. Rains over the last couple of days have slowed progress, and more rain is possible tomorrow. Traders are looking for demand news, and ideas are that China has been buying. However, USDA has not yet confirmed any big sales like it did for Corn last week. Basis levels are firm in the country, and farmers are not selling much. Brazil farmers are planting Soybeans in the Center West area this week. It has been too dry in center west areas, but rains were seen in the last couple of weeks, so planting is active. Planting has started in Argentina.
Overnight News: Basis levels are steady to firm at the gulf. Gulf Soybean Meal basis is steady to firm.
Chart Analysis: Trends in Soybeans are mixed. Support is at 1210, 1206, and 1201 November, and resistance is at 1245, 1259, and 1278 November. Trends in Soybean Meal are mixed. Support is at 315.00, 314.00, and 312.00 December, and resistance is at 325.00, 327.00, and 330.00 December. Trends in Soybean Oil are mixed. Support is at 5100, 5060, and 4960 December, with resistance at 5240, 5300, and 5390 December.

CANOLA AND PALM OIL
General Comments: Canola was higher on a weak Canadian Dollar and a lack of farmer selling. Basis levels are reported strong, and end users are looking to futures to get priced. There was a lot of spreading out of November positions as well. Processors and exporters were the best buyers, but showed less interest as Chicago prices moved lower. Palm Oil was higher today. Ideas of lower production in Malaysia supported the market. SGS estimates Malaysian Palm Oil exports at 1.366 million tons so far this month, from 1.204 million last month. ITK said exports were 1.395 million tons so far this month, from 1.199 million last month.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 528.00, 522.00, and 518.00 November, with resistance at 534.00, 539.00, and 542.00 November. Trends in Palm Oil are mixed. Support is at 2880, 2850, and 2820 January, with resistance at 2950, 2995, and 3025 January.

Midwest Weather: Mostly dry, but a few showers are possible Wednesday. Temperatures will average below normal.

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