Wheat closed lower again on profit taking before the USDA supply and demand reports today and some demand concerns as dry weather continued in the Great Plains. The United States has about the only bad production conditions in the world right now and as other origins are offering at far cheaper prices. The USDA crop condition reports this week showed once again that Wheat is getting stressed. USDA should show less production in its estimates today, especially for HRW. SRW and White Wintrer conditions are much better. Spring Wheat planting remains delayed, but soil moisture will be great once producers are able to work the fields.
Longer range forecasts call for better planting weather to develop later next week. It remains very dry in western section of the Great Plains from Kansas to the south, and these áreas comprise the bulk of the HRW crop. Most northern hemisphere Wheat crops appear to be in good condition, with the área with the most problems located in the central and southern U.S. Great Plains.
Overnight News: The southern Great Plains should see mostly dry weather, but some showers today in central and eastern areas. Temperatures should average above normal. Northern areas should get showers and storms off and on through the weekend. Temperatures should average near normal today, then near to below normal. The Canadian Prairies should get light precipitation today and again this weekend in southern areas. Temperatures will be near normal.
Chart Analysis: Trends in Chicago are mixed to up with objectives of 766 July. Support is at 724, 721, and 717 July, with resistance at 744, 752, and 761 July. Trends in Kansas City are mixed to up with objectives of 865 July. Support is at 828, 816, and 811 July, with resistance at 855, 857, and 864 July. Trends in Minneapolis are mixed to up with no objectives. Support is at 793, 782, and 779 July, and resistance is at 814, 823, and 827 July.