Kleist Comments

MORNING GRAINS 12/11/13
MORNING GRAINS 12/11/13

Corn:

Exports: Sold Unknown 120,00t old crop.

Comments: The weather across the country seems to have effected news developments for grains since there is very little around this morning. The USDA report is gone and now eyes will be to the January USDA and IF yields will be raised again and with it production. as mentioned, the report’s take on an increase in corn for ethanol was a surprise of sorts and with it already seeing doubts about it in some articles. I lean to it being real as low corn prices offsets mandate declines. Some talk of end-month cash movement with payment in January (hello taxes!) that could pressure prices some. Open interest fell only 1,400 led by Z/H off 7600, minor increases in back months, amid better volume. In minutia, March corn has a mini-trend line around $4.32; current formations not conclusively base-forming, looks like merely a consolidation for now. Close over $4.40 a minor bull victory for now.

SOYBEANS:

Exports: None Visible.

Comments: As mentioned yesterday, the end-session lower close did no technical damage and the uptrend is intact. Nonetheless, January beans around $13.50 yesterday look ‘pricey’ near term and as such I am neutral up here. Apparently funds like the action and the main source of buying: open interest rose 8,600 even as January fell 11,300 amid heavy volume. Even the soymeal had a big day: open interest fell 1,650 led by Dec. off 7,756 and volume was heavy; soyoil, weaker all day, had open interest up 5,400 amid large volume. Yesterday did produce a ‘mini-reversal’ but I am not basing my neutrality on it. CPO in Asia torn between lowered exports and heavy rains in Southeast Asia effecting production.

Wheat:

Exports: None Visible.

Comments: 5 deliveries house stopped again. Ukraine harvest to Dec. 10th up 36% on year. Again, no surprise but reflected yesterday’s bearish USDA numbers. New contract lows as prices fall out of bed. We need to see where export demand might kick in before looking for at least a consolidation. Open interest rose ‘only’ 1,250 amid decent volume.

Kleist Comments

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

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