Kleist Comments

MORNING GRAINS 10/25/13
MORNING GRAINS 10/25/13

Corn:

Exports: None Visible.

Comments: November serial options for December corn expire today, $4.40 strike most likely target; some talk of pre-weekend hedging might be tempered some by rains coming in Tuesday; open interest rose 2,600 even as Dec. falls 4170 amid good volume for once…..the ‘coiling’ heating up? Not much fresh around.

SOYBEANS:

Exports: Sold China 120,000t an Sold Taiwan 120,000t U.S. soybeans.

Comments: November bean options expire at noon today, $13.00 strike the likely target to fool around with; open interest little changed in total even as November falls 16,850 in an apparent ‘roll’ into several other months, volume still decent. Hedge pressure over $13.00 has faded and in line with our reading of what could happen after harvest gets to 50% or more. Not much fresh news around though the overnight Asian demand had a relatively rare Taiwan appearance.

Wheat:

Exports: Japan buys 74,829t food wheat from several countries; So.Korea buys 80,600t U.S./Can.

Comments: Rumor has it India is “dumping” wheat on the export market because they failed to sell when prices were higher with a record amount of storage to get through…basically they thought they were the big dog and refused prices not to their liking, this is what happens; open interest little changed in total though some amounts saw (likely) rolling between Z/J, volume moderate. No opinion change but IF India indeed decide to have a fire sale on excess surplus it will effect not only our wheat exports but also I fear our corn exports (lot of feed whet there as well).

Kleist Comments

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

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