WHEAT
General Comments: Futures closed higher on reports that the EU has found at least a partial solution to its current economic crisis. Private banks have agreed to accept a loss on the Greek bonds, and the EU has sent more support there. 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. However, there are increasing reports of weather problems for new crop Wheat in Ukraine and Russia. 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 steady for Soft Red Winter Wheat and steady for Hard Red Winter Wheat.
Chart Analysis: Trends in Chicago are mixed. Support is at 638, 630, and 620 December, with resistance at 650, 655, and 662 December. Trends in Kansas City are mixed. Support is at 715, 702, and 688 December, with resistance at 739, 747, and 757 December. Trends in Minneapolis are mixed. Support is at 915, 903, and 896 December, and resistance is at 932, 934, and 937 December.

RICE
General Comments Prices were higher again yesterday on follow through buying related to tight supplies here and around the world. News that EU ministers had at least partially resolved the economic problems and crisis helped support values. 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. 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.

CORN AND OATS
General Comments: Corn and Oats were higher as hopes for a resolution to the European crisis were rewarded by some new support for Greece and an agreement from banks to accept losses on Greek bonds. Strength in Corn came also from strength in Crude Oil and extreme weakness in the US Dollar. 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 weekend, 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 steady at the Gulf of Mexico.
Chart Analysis: Trends in Corn are mixed. Support is at 647, 643, and 632 December, and resistance is at 657, 666, and 669 December. Trends in Oats are mixed to down with objectives of 324 and 311 December. Support is at 329, 326, and 324 September, and resistance is at 334, 338, and 340 December.

SOYBEANS AND PRODUCTS
General Comments: Soybeans and products were higher on European economic crisis progress. Banks accepted a loss on the bonds they own, and the EU issued some new support for the country. This helped support commodities across the Board as the US Dollar moved sharply lower. 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 there has not been much. 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 at the gulf. Gulf Soybean Meal basis is steady.
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 5190, 5100, and 5060 December, with resistance at 5240, 5250, and 5300 December.

CANOLA AND PALM OIL
General Comments: Canola was lower on a stronger Canadian Dollar and weakness in the US Dollar following the European agreement to support Greece. 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. Cargill confirmed that clubroot was found in two fields in Saskatchewan and asid it si working with the government to control the diseease. Palm Oil was higher today. Ideas of lower production in Malaysia supported the market.
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, 537.00, and 539.00 November. Trends in Palm Oil are up with objectives of 3030 January. Support is at 2950, 2930, and 2900 January, with resistance at 3025, 3045, and 3070 January.

Midwest Weather: Mostly dry. Temperatures will average below normal.

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