Kleist Comments

MORNING GRAINS 11/11/13
MORNING GRAINS 11/11/13

VETERAN’S DAY…THANKS TO THEM ALL

Corn:

Exports: None Visible.

Comments: KEY REVEAL? If so it was massive: open interest up 23,000 amid record high volume of 686,000 contracts! A major battle ground. I’ll go with it and suggest a likely bull-defense merely a move under contract lows at $4.15-1/2; hedgers protect equity with calls or call spreads. One “fly in the ointment”: apparently some time this week the EPA will rule on the ethanol mandate (instead of the rumored last Friday); arctic cold and snow moving in might disturb some harvesting, seen at 85% or so completed.

SOYBEANS:

Exports: None Visible.

Comments: Mini-reversal Friday but overhead resistance stopped it starting at $12.99-13.11 for now. USDA report was friendly and demand remains robust apparently. Open interest rose 3,400 amid strong volume; C-O-T report: leaned bullish; China futures: strongly higher soymeal, lower soyoil/palm oil with beans mostly higher; harvest 92-95% complete?; South American weather remains favorable; nearby support January beans $12.87-12.80 to start and see if the recovery has legs.

Wheat:

Exports: None Visible.

Comments: More reports that the Black Sea region seeing exports well over a year ago but old news?; U.S. winter wheat conditions said OK; Friday’s low at $6.44 was important support, well near it at $6.40-6.35 area (now likely the bull defense on a close), corn will likely have some influence however; open interest rose 11,200 amid heavy (record?) volume, not a reversal but heavily oversold; close over $6.58-1/2 possibly will spook some of those new shorts; C-O-T report: leaned bullishly.

Kleist Comments

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

Disclaimer: Trading options and commodities involves risk of loss and my not be for every investor. Past trading results may not be indicative of future performance. Although information and opinions provided herein are compiled from sources believed reliable, the sender, EBOT Trading, or its principals cannot attest as to accuracy or assume any responsibility for any errors or omissions as the information may not be complete or events may have changed.