Kleist Comments

MORNING GRAINS 10/29/13
MORNING GRAINS 10/29/13

Corn:

Exports: Sold South Korea 140,000t U.S., buys 65,000t feed wheat opt/org.

Comments: South Korean group ‘Nofi’ buys U.S. 1st time in 16 months as U.S./South American price gap narrows; 38-month low yesterday here helps; harvest 59$ complete up 20% on week…always amazing what the producers can do (back near avg. at 62% as well); crop ratings 62% gd./excel. vs. 60% prev. week; C-O-T report for Oct. 8th was friendly back then; open interest rose another 14,500 amid moderate volume…….bears in charge now after new low/new low closes yesterday. I am locked still long calls and have made no fresh new decision….I might have erred most not respecting that EPA ‘leak’ rather than just excellent crop reports coming in.

SOYBEANS:

Exports: None Visible.

Comments: 1st notice day Thursday and as expected open interest fell hard with November off another 38,150, total off 31,100, amid good volume….tough to stnd in the way of that flood gate opening; 71,000 left in the November might be low enough to now cool the panic selling off; rains coming in next few days; harvest 77% vs. 63% wk. and vs. 77% avg.; USDA on Thursday to update all of October export sales?; Asian CPO prices rise on weather concerns in Malaysia; C-O-T report from Oct. 8th was neutral back then. Only positive is that November did not make a new swing low after heavy long liquidation, we’ll see is enough.

Wheat:

Exports: None Visible.

Comments: Winter wheat plantings 86% complete vs. 79% wk.; 61% gd./excel. vs. 65% wk.; Alberta Can. reports harvesting ends, quality & yields seen ‘good’; C-O-T report negative back then; open interest fell 4,000 led by Dec. off 4,100 amid light volume. Like the beans but unlike the corn wheat did not make new lows but will need some outside help to pop a decent rally.

Kleist Comments

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

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