Kleist Comments

MORNING GRAINS 10/3/13
MORNING GRAINS 10/3/13

Corn:

Exports: So.Korea buys 63,000t opt/org.; Japan buys 92,000t feed wheat/barley; Taiwan buys 60,000t Brazil corn.

Comments: Consider: funds DID buy their usual, 3-day action with open interest up another 11,500; for the 3-days open interest rose 37,500+ while (using) the December’s Monday high of $4.62 and consider this: basically a 2-day low at $4.35 Tues./Wed…..by itself not much bang for the funds short bucks but also, the ‘new’ fund selling did not seem to kick in until December violated the old swing low of $4.48; that’s an awful lot of new shorts in a very compressed area and keeps me from pressing the shorts as mentioned all week. Close back over $4.50 might trigger shortcovering. Otherwise, rains to further disrupt harvesting, and current harvesting still reports very good yields.

SOYBEANS:

Exports: None Visible.

Comments: Rains coming in and with it more harvest delays though yes, bigger yields still being reported; CPO in Asia WAS effected by the USDA shut down…but via the U.S. $ action; southern U.S. soybeans weather favorable for harvest, Midwest some rains help late filling plants; China still on holiday but their stock market higher on bullish service sector news data to a 6-month high (U.S. beans like good economic news out of China generally); soyoil deliveries 1608; open interest little changed in total even as Nov. drops 8,515 amid moderate volume. Holding calls, needing a close over back $13.00 to perhaps pop some shorts.

Wheat:

Exports: Japan buys 118,5005 (U.S. share 72,500t).

Comments: U.N.’s FAO lowers world cereal grain production by 3.0mln.m/t’s…no big deal but another ‘piece’ of bullishness; Argentina’s wheat crop facing more crop trouble on cool, dry weather (more Brazil business to the U.S.?); heavy rains in Ukraine slow plantings and exports; StatsCanada tomorrow expected to show a large crop; open interest rose 1,880 amid 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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