WHEAT
General Comments: Futures closed lower after trading higher early in the day. It looked like speculative selling hit the pit. Minneapolis December was very strong and it seems that the market is getting squeezed on tight available supplies of Hard Red Spring Wheat. 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 areas could see some showers this weekend. Yields and quality in Spring Wheat areas were hurt earlier in the season due to excessive rains in the north, but harvest conditions now are good. Yield reports have been disappointing and have been supporting futures. Wheat is still finding its way into feed rations as many buyers do not want to pay the high prices for Corn. The spread is correcting, but Wheat is still cheap to Corn. Wheat lost to Corn yesterday. Charts show that Wheat trends are mixed.
Overnight News: Mostly dry conditions are expected in the southern Great Plains, but some showers are possible in western sections this weekend. Northern areas could see mostly dry conditions. Temperatures should average above normal. It should be very warm this weekend. The Canadian Prairies should get mostly dry conditions. Temperatures will average near normal to above normal. Gulf basis levels are steady for Soft Red Winter Wheat and higher for Hard Red Winter Wheat.
Chart Analysis: Trends in Chicago are mixed. Support is at 615, 608, and 602 December, with resistance at 623, 632, and 640 December. Trends in Kansas City are mixed. Support is at 690, 678, and 675 December, with resistance at 715, 720, and 737 December. Trends in Minneapolis are mixed to up with objectives of 933 and 1020 December. Support is at 880, 871, and 862 December, and resistance is at 904, 911, and 923 December.

RICE
General Comments Prices were higher yesterday on speculative buying early in the session, but then closed lower on what appeared to be speculative and harvest selling. Charts show that futures did not break any new ground in the price action yesterday. Rice can trade higher on the fundamentals as well. Philippines will reevaluate its import program for next year in light of recent and coming storms. Vietnam prices are near three year highs. Chinese prices are high. US weather will feature dry conditions in the Delta that should promote good harvest progress. 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 as harvest progresses. US cash markets are reported to be steady to weak in Arkansas. Cash markets in Texas and Louisiana appear weak.
Overnight News: Mostly dry. Temperatures will average near normal.
Chart Analysis: Trends are mixed. Support is at 1590, 1580, and 1567 November, and resistance is at 1620, 1630, and 1640 November.

CORN AND OATS
General Comments: Corn and Oats opened higher yesterday on ideas the market was oversold and strong weekly export sales, but closed unchanged. Yield reports continue to be higher than expected from the early harvest, although some yield reports are moving lower as the harvest progresses. Much improved harvest weather in all parts of the Corn Belt for this week has helped speed the work. Some harvest has been reported in parts of Iowa and Illinois, and harvest is now moving north. 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 firm, 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. Basis levels are firm in the country.
Overnight News: Basis was firm at the Gulf of Mexico. CONAB in Brazil estimates Corn production between 57.33 and 58.99 million tons, from 57.5 million last year.
Chart Analysis: Trends in Corn are mixed to up with objectives of 618 and 643 December. Support is at 594, 576, and 572 December, and resistance is at 617, 623, and 646 December. Trends in Oats are mixed. Support is at 321, 316, and 311 September, and resistance is at 330, 334, and 336 December.

SOYBEANS AND PRODUCTS
General Comments: Soybeans and products were higher at the start of the day yesterday on ides the market is oversold and strong export sales, but then found a combination of speculator and hedge related selling to close mixed. Reports of good yields in the country hurt futures, and harvest progress is rapid this week due to dry and warm weather. Traders are looking for demand news. The export side of the market seems quiet, but reports indicated that processors were stepping up buying interest. Western areas will continue to move ahead with harvest, and eastern areas can try to catch up this week. Basis levels are weak in the country, but farmers are not selling much. Brazil farmers are starting to plant Soybeans in the Center West area this week. It has been too dry in center west areas, but rains were seen this week, so planting is started. However, there might be some losses in some areas from the delayed planting.
Overnight News: Basis levels are firm at the gulf. Gulf Soybean Meal basis is firm. CONAB in Brazil estimated Soybeans production between 72.18 and 73.29 million tons, from 75.3 million tons last year.
Chart Analysis: Trends in Soybeans are mixed. Support is at 1152, 1149, and 1144 November, and resistance is at 1183, 1206, and 1210 November. Trends in Soybean Meal are mixed. Support is at 301.00, 299.00, and 297.00 December, and resistance is at 312.00, 315.00, and 317.00 December. Trends in Soybean Oil are mixed. Support is at 4890, 4850, and 4760 December, with resistance at 5000, 5100, and 5240 December.

CANOLA AND PALM OIL
General Comments: Canola was higher on what appeared to be speculative and commercial buying. Light selling from producers and elevators was noted. Processors and exporters were the best buyers. Reports of warm and dry weather supported ideas of big harvest progress. Most crops appear to be in good condition as harvest progresses, and yields are reported to be very good. Harvest is ahead of normal. Palm Oil was lower today on outside markets.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 518.00, 511.00, and 505.00 November, with resistance at 530.00, 532.00, and 542.00 November. Trends in Palm Oil are down with objectives of 2600 December. Support is at 2770, 2755, and 2740 December, with resistance at 2830, 2850, and 2865 December.

Midwest Weather: Mostly dry in all areas. Temperatures will average above normal.

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

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