Kleist Comments

MORNING GRAINS 10/2/13
MORNING GRAINS 10/2/13

Corn:

Exports: So.Korea cancels 140,000t opt/org., buys 52,000t corn Black Sea.

Comments: Notice the Black Sea corn alluded to above…..changing buying habits indeed for importers;

USDA reports still largely shut down but we’ll limp along without them awhile, though the monthly S&D report would be tough to replace (talk is corn/bean acreage adjustments and expected higher yields, more later); not much bang for the buck (again) dept.: open interest rose 12,500 amid moderate volume (as mentioned, I believe yesterday and Monday there was strong commercial buying absorbing the funds new-short selling) and prices only modestly lower yesterday?; big rains expected to delay harvest especially in parts of IA. and Mn. Leaning to buying calls to protect hedge equity and still saying not to press the short side. A close back over $4.50 makes the game more interesting technically if we can get it.

SOYBEANS:

Exports: So.Korea buys 99,000t soymeal from U.S./India/So.Amer., buys 11,000t U.S. DDG.

Comments: Asia certainly keen on booking well-out feed supplies; Asian CPO reports not effected by the USDA shut down; rains to further delay harvest but might help some late filling crops; frost seen in ND and SD but no bean damage seen; China still on holiday week; open interest fell 5350 led by November off 5920 amid moderate/good volume (liquidation running its course); November held just over our $12.50′s support area and recovering some, need a close back over $13.00 to get more comfortable those calls.

Wheat:

Exports: None Visible.

Comments: Canada reports spring wheat protein levels under average; open interest fell 2,430 led by Dec. off 3100 (shortcovering continues) amid moderate volume. Nothing new here, might get our $7.00/bu. after all if corn holds or better yet rallies but we still give wheat some independence as we have for weeks.

CATTLE NOTE: WIRE REPORTS PACKER BIDS $123.00. THAT’S NOT UNUSUAL, AND FEEDERS WANT $127.00 AT LEAST. THE DANCE BEGINS.

Kleist Comments

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

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