WHEAT
General Comments: Futures closed lower yesterday as traders waited for the FED announcement. The FED announcement that it would buy longer dated bonds and sell near dated notes was as expected, but after the announcement the dollar rallied sharply and stock markets went sharply lower. Fears that Russia was taking all the export business helped the bears, while ideas the market was oversold and basis strength for SRW at the Gulf helped bullish traders. Some showers were seen in much of the Great Plains and Midwest last week, but none is forecast for the next week or so. Rain totals remain very light, but even light rain will help there since it has been so dry. 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 continue. Yields and quality in Spring Wheat areas was hurt earlier in the season due to excessive rains in the north, but harvest conditions now are good. Wheat is still finding its way into feed rations as many buyers do not want to pay the high prices for Corn. The current Corn prices imply that these trends will continue. Charts show that the trends are down.
Overnight News: Mostly dry conditions are expected in the southern Great Plains. Northern areas could see mostly dry conditions. Temperatures should average near to below normal early in the week and near to above normal later in the week. It should be very warm this weekend. The Canadian Prairies should get mostly dry conditions, and turn very warm by this weekend. Temperatures will average near normal to above normal this week and much above normal this weekend. Gulf basis levels are steady for Soft Red Winter Wheat and steady for Hard Red Winter Wheat.
Chart Analysis: Trends in Chicago are down with no objectives. Support is at 662, 651, and 639 December, with resistance at 682, 687, and 696 December. Trends in Kansas City are down with no objectives. Support is at 760, 755, and 734 December, with resistance at 778, 780, and 800 December. Trends in Minneapolis are down with no objectives. Support is at 833, 822, and 815 December, and resistance is at 853, 860, and 876 December.

RICE
General Comments: Prices were lower again yesterday on speculative selling tied to weakness in outside markets and fears about the European situation. Traders were also liquidating positions before the FED announcement today. The FED announcement that it would buy longer dated bonds and sell near dated notes was as expected, but after the announcement the dollar rallied sharply and stock markets went sharply lower. Cold weather remains and issue for farmers here and is expected to return this weekend. The weather was cool last week enough to hurt Rice progress and yield potential, at least in Arkansas and Missouri, and might get cool enough again. The harvest continues to move north, although slowly. Initial yield reports are mixed in Arkansas, but overall the reports are not showing any big disasters. Milling yields have not been good as harvest progresses. US cash markets are reported to be steady to firm in Arkansas. New crop bids have also been steady to firm. Cash markets in Texas and Louisiana appear steady to firm. Futures remain well above cash prices, but cash prices are starting to move a little higher as the harvest progresses.
Overnight News: Some showers are possible in Mid South and Delta areas Thursday, but mostly dry. Temperatures will average below normal.
Chart Analysis: Trends are down with objectives of 1664 November. Support is at 1685, 1680, and 1676 November, and resistance is at 1751, 1763, and 1795 November.

CORN AND OATS
General Comments: Corn and Oats closed lower yesterday, in anticipation of the FED announcement. The FED announcement that it would buy longer dated bonds and sell near dated notes was as expected, but after the announcement the dollar rallied sharply and stock markets went sharply lower. Expectations of harvest progress helped keep prices down. Some showers and cool temperatures were seen over the weekend and the precipitation could slow harvest progress. More showers are expected in northern areas today and tomorrow, and temperatures will turn cold again. USDA showed more than expected condition declines in its weekly reports Monday, implying that the freeze damage was worse than generally assumed last week. The cash market is steady, and cash market buyers have been easier to find with current prices, but demand overall does not appear that strong. Basis levels are steady in the country as the elevators prepare for the harvest.
Overnight News: Basis was steady at the Gulf of Mexico.
Chart Analysis: Trends in Corn are mixed to down with no objectives. Support is at 686, 677, and 669 December, and resistance is at 704, 707, and 717 December. Trends in Oats are up with objectives of 357, 368, and 418 December. Support is at 349, 346, and 342 September, and resistance is at 359, 361, and 366 December.

SOYBEANS AND PRODUCTS
General Comments: Soybeans and products were lower yesterday on ideas of higher than expected yields and in preparation for the FED announcement. The FED announcement that it would buy longer dated bonds and sell near dated notes was as expected, but after the announcement the dollar rallied sharply and stock markets went sharply lower. Ideas of weak demand and on the European and Greek economic issues continued to hurt price action. A cold front moved through the Midwest last week and brought frost or freezes to some of the crop in Minnesota and the Dakotas. USDA showed greater than expected condition losses in its weekly updates yesterday because of the event. More showers are likely in northern areas over the middle of the week, then it will turn cold again. Initial yield reports have been highly mixed. US processor demand is not good for now, and export demand appears soft. Basis levels are steady. Charts show that trends are mostly down for the short term.
Overnight News: Basis levels are steady to lower at the gulf. Gulf Soybean Meal basis is steady to lower.
Chart Analysis: Trends in Soybeans are down with no objectives. Support is at 1318, 1282, and 1267 November, and resistance is at 1345, 1350, and 1375 November. Trends in Soybean Meal are down with no objectives. Support is at 338.00, 337.00, and 334.00 October, and resistance is at 350.00, 353.00, and 354.00 October. Trends in Soybean Oil are down with no objectives. Support is at 5475, 5415, and 5285 October, with resistance at 5600, 5625, and 5650 October.

CANOLA AND PALM OIL
General Comments: Canola was lower along with Chicago and in anticipation of the FED announcement. The FED announcement that it would buy longer dated bonds and sell near dated notes was as expected, but after the announcement the dollar rallied sharply and stock markets went sharply lower. Harvest progress continues and kept futures from moving much higher. Funds and producers were the best sellers. Exporters and processors were the best buyers. Reports of dry weather supported ideas of big harvest progress. Some selling was seen as export demand seems slow. Cash movement by farmers was reported moderate last week as the farmers are with the new crop harvest. Most crops appear to be in good condition as harvest progresses, and yields are reported to be very good. Ideas are that the crops are now past danger from freezes, which is good since there was a killing freeze in most areas last week. Harvest is ahead of normal. Palm Oil was mixed today.
Overnight News:
Chart Analysis: Trends in Canola are mixed to down with no objectives. Support is at 553.00, 551.00, and 546.00 November, with resistance at 560.00, 569.00, and 574.00 November. Trends in Palm Oil are mixed. Support is at 3025, 3015, and 2980 December, with resistance at 3080, 3090, and 3115 December.

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

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