Kleist Comments

MORNING GRAINS 11/22/13
MORNING GRAINS 11/22/13

Corn:

Exports: None Visible.

Comments: Quiet outside news this morning. China’s Ag Min. again estimates a 12th consecutive record grain harvest…old news, really. Looks like a run for the profits as December open interest falls 38,600 (total dn. 11,000) amid fairly heavy volume. Bottom or a bounce? Cash is strong on demand strong so I prefer the former (beat that dead horse!) but still see many obstacles before selling rallies not profitable.

SOYBEANS:

Exports: Sold China 115,000t 2013-2014.

Comments: Nice to see China still active, wonder if they are concerned a new farm bill or lower prices could crimp our new crop plantings? Rascally communists. While on China, their futures had mixed beans but migher meal and especially vegoil prices. Open interest fell 2,000 led by Jan. off 10,700 (big rolling?) but with light-side volume. Back to $13.00 Jan. beans with nearby resistance at $13.05-13.10, after that to swing highs at $13.21-1/2. Maybe. We’ve remained neutral to friendly beans but still only in a trading affair range. The market needs to make selling rallies more unprofitable. Oh, and South American weather still generally ideal.

Wheat:

Exports: Japan buys 14,731t Can/Aust.

Comments: Gee, Japan can you afford it? Not much of a tender and none from the U.S…..but so what? Ukraine harvest to date up 34.6% on yr. and no surprise ; Argentine weather OK; some talk that Australia’s harvest and quality being harmed by rains/frost; some talk Iraq is around for a tender; open interest rose 1,000 even as Dec. falls 17,700 (H up 12,800 of note) amid decent volume. 11-day trading range basically but bottoming or better yet—-distribution bottom? We;ll see. Maintain likely bear defense area.

Kleist Comments

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

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