Wheat was tried to rally yesterday, but could not hold the best gains of the day.
The market remains near recent lows and has found some support against those levels. A higher U.S. dollar created some of the selling interest, as did the Kansas Crop Tour. The Kansas crop tour was on its second day and participants were in southwestern parts of the state. They found very good crop potential and rated the crop as much better than last year. The earlier drought had affected the crop, but not enough to seriously damage the overall production potential for the region covered.
The recent rains proved to be very beneficial. The Winter Wheat markets saw the weakness, with the biggest selling seen in Kansas City. Minneapolis closed lower despite the cool and wet weather that affected planting progress recently as the weather is starting to improve. It is also wet in eastern parts of the Canadian Prairies, but too dry in western areas. Milder and drier weather is on tap for this week after some significant rains for the Great Plains and Midwest last week. The warmer weather is needed to promote good crop progress. Some big storms could hit the southern and Central Great Plains over the weekend.
Overnight News: The southern Great Plains should see mostly dry weather, but showers on Sunday. Temperatures should be mostly below normal. Northern areas should get mostly dry weather, but showers on Sunday. Temperatures should average mostly below normal. The Canadian Prairies should see mostly dry conditions. Temperatures will average mostly above normal in the west and near to below normal in the east.
Chart Analysis: Trends in Chicago are mixed to down with objectives of 465 and 449 July. Support is at 467, 463, and 453 July, with resistance at 482, 493, and 497 July. Trends in Kansas City are down with objectives of 448 and 428 July. Support is at 453, 446, and 440 July, with resistance at 466, 473, and 479 July. Trends in Minneapolis are mixed to down with objectives of 529, 524, and 518 July. Support is at 534, 526, and 522 July, and resistance is at 548, 551, and 560 July.