Kleist Comments

MORNING GRAINS 10/15/13
MORNING GRAINS 10/15/13

Corn:

Exports: None Visible.

Comments: I admit to backing off my unusual optimism for the corn largely due to the ethanol “leak” and use of 500mln.bu. at risk (this in spite of my well-known views on corn ethanol!) as with that, higher yields keep coming in and a higher old crop carry-in could see U.S. new carry at around 2.0bln.bu. which could be tough to see sustained say, $4.75-5.00 corn prices.

SOYBEANS:

Exports: None Visible.

Comments: Some talk soybean plantings in Brazil picking up though steady still at 8% vs. 9% avg.; soyoil deliveries 71; NOPA crush est. 106.5mln.bu.; China buying still said under the market and perhaps what November holding the $12.60’s again? Charts looking dangerously bearish with prices at range low-end; and funds still selling short apparently as open interest jumps 7,000 even as Nov. falls 2,580 amid strong volume. No strong feel in here.

Wheat:

Exports: Japan in 112,031t U.S./Aust.

Comments: Talk in Ukraine that the final 25% of plantings dying delayed again by rains; China Ag Minister says wheat plantings are down on dry conditions; open interest little changed in total even as March rises 1100, rest minor changes, volume VERY light. Neutral in here

Kleist Comments

This is John Kleist, of Kleist Ag Consulting.
Questions? Email me: johnwkleist@sbcglobal.net

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