Kleist Comments

MORNING GRAINS 11/7/13
MORNING GRAINS 11/7/13

Corn:

Exports: None Visible.

Comments: Weekly export sales 1.72mln.m/t’s very good again (to date totals running 50% more than last year), led by Japan at 382,400t, So.Korea 308,000t and China 289,400t; there’s talk apparently that Friday the EPA will decide on that ethanol mandate; speaking of ethanol more deliveries curious after all the bull talk over demand (storage, eh?); read where the CFTC’s new position limits c/be 10x’s the current CME rule?; C-O-T report: for Oct. 29th, leaned positive; open interest rose 18,455 even as Dec. falls 20,000 (big battle yesterday in a narrow range) amid strong volume. Await the report.

SOYBEANS:

Exports: None Visible.

Comments: Weekly export sales 1.02mln.m/t’s were healthy (do NOT compare with 3-week totals from last week but from my weekly breakdown of it), led b y China 1.058mln. and even Indonesia at 113,800t, however Unknown cancels 382,000t and even those rascally Russian’s cancelled 30,000t; meal sales good at 287,800t (Philippines 129.400t) and soyoil excellent at 65,900t (Unknown 37,700t of it); Deliveries 252 mostly street, house issues 106 and stops 67; CPO and China futures weak, slow ahead of the reports; talk there will not be a renewal of the bio-diesel tax; Brazil government seen estimating their crops Friday; China’s Big Boys (politicians) to meet for a “once in a decade” meeting Saturday; open interest rose 2,700 amid light volume; C-O-T report for Oct. 29th: hard to believe such big number changes but all in all looked neutral; await reports.

Wheat:

Exports: None Visible.

Comments: Weekly export sales 416,00t rather flat; fresh news rather flat; C-O-T report as of Oct. 29th: slightly positive; open interest rose 8,500 (fairly large ahead a report is it not?) led by March up 4,000 amid good volume; as I have said repeatedly lately, world supplies are ample and the U.S. needs to be competitive and that’s why sustainable rallies have little reason for now. Await Friday’s reports, cannot exclude the possibility the grain floor in general could see a corrective rally between now and then but tough to call.

Kleist Comments

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

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