Kleist Comments

MORNING GRAINS 10/9/13
MORNING GRAINS 10/9/13

Corn:

Exports: Japan cancels up to 180,000t feed wheat & up to 200,000t feed barley.

Comments: Seems it was funds defending new short positions against that $4.50 area using the December as a guidepost: open interest rose 9,000 spread out over several contract months amid moderate/light volume; harvest conditions improved this week and adding some cash pressure?; “brother, can you spare a dime?” dept.: Japan and China cryin’ over the possible U.S. Treasury default but hey, they only own $1.135trillion and $1.277trillion respectively of our debt! December corn’s 20-day m/a at $4.50-1/2 and 10-day at $4.44-1/2. New swing low close the likely near term bull defense. Japan cancelled its SBS tender as apparently no one came out to play? Maybe they wanted it too cheap?

SOYBEANS:

Exports: None Visible.

Comments: Harvesting picking back up and with it pressure futures prices on rallies yesterday and likely today; Southern Brazil rains favor “any” early plantings; soyoil deliveries 168; OECD says indications of a pick up China, Russia economies (and other major developed countries); open interest rose 7,900 even as November falls 10,145 amid strong volume……battle lines drawn gentlemen, close over $13.05-3/4 the bull winner; close under $12.71 the bear winner? Start your engines.

Wheat:

Exports: None Visible.

Comments: Keep in mind Ukraine harvest is OK so far and crop up 14% on yr., the ‘weeping and gnashing of teeth’ is over winter wheat plantings; U.S. midwest seeing ‘favorable’ planting conditions; open interest little changed in total and amid very light volume; Like the corn at $4.50, December wheat having trouble at the $7.00 area. No fresh feel.

Kleist Comments

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

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