Kleist Comments

MORNING GRAINS 10/16/13
MORNING GRAINS 10/16/13

Corn: *****STOCKS MARKET TALK OF DEBT COMPROMISE IS COMING********

Exports: Japan cancels in for 180,000t feed wheat, 200,000t feed barley…lack of interest.

Comments: December corn keeps getting pushed back when reaching the mid-high $4.40′s likely funds ‘defending’ new shorts; Argentine corn plantings need more rains; OECD says 34-nation long term unemployment 2nd Q 2013 at post-2008 crisis high (examples: Greece 65.5%, Germany at 17% while the U.S. at 26.5%); China buying rumors anywhere from 300-500,000t to 3.5mln.; trade action today certainly, to me anyway, confirms yesterday’s nonsense on the wires about the ‘why’; open interest rose 5,300 led by March up 4,670 amid a moderate improvement in volume. In the electronic, December hit a surprisingly hard brick wall at its 20-day m/a of $4.46. Rising open interest in a small range is a snake coiling and something has to give…hopefully not me! I remain “cautiously optimistic” as the limp politicians say. But the rising yields, no problems in other countries crops, potentially poor world economics etc., etc………

SOYBEANS:

Exports: None Visible.

Comments: 15-year low in OJ demand? (just found it curious); harvest weather seeing improvement on latest forecasts; Brazil plantings steady but beneficial rains might delay; Asian CPO up 1.8% on ‘China restocking’ ahead of winter (Malaysian palm oil exports up 11.8% on month); open interest fell 3,600 amid moderate volume led by off 7,420; November in the high $12.00′s is its Waterloo. In a trading range to the $12.60′s?

Wheat:

Exports: None Visible.

Comments: More wheat/corn and corn/wheat spreading as mentioned keeping it choppy; U.S. weather called favorable; India said to cut ‘floor’ price by 13%, says will increase Russian buying; Fitch ratings watching U.S. AAA debt ratings on default; Russia’s Economic Minister says growth will only be 1.5%-1.6% (vs. Putin’s KGB’s call for 5%); open interest fell 3,000 led by December off 3,800 amid still-light volume. No opinion change.

Kleist Comments

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

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