Wheat closed lower again in reaction to USDA supply and demand reports and some forecasts for wet weather in the Great Plains. Production of Winter Wheat in the US was below most trade expectations. Ending stocks estimates were also a Little below trade expectations, But, the world data showed more production and ending stocks and was the bearish forcé behond the trade action. 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. Weekend weather showed some good raions for Nebraksa and Kansazs, but not that much farther south into the Texas Panhandle.
The USDA crop condition reports this week showed once again that Wheat is getting stressed. Spring Wheat planting remains delayed, but soil moisture will be great once producers are able to work the fields. Longer range forecasts call for cool weather this 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 US 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. Support is at 721, 717, and 710 July, with resistance at 740, 744, and 752 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 845, 855, and 857 July. Trends in Minneapolis are mixed to up with no objectives. Support is at 793, 782, and 779 July, and resistance is at 809, 814, and 823 July.