Kleist Comments

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

Corn:

Exports: None Visible.

Comments: December Expires at NOON; besides the ethanol mandate concerns there’s still talk of China cancellations of corn AND DDG’s apparently. That’s a lot for bulls to overcome. And it might explain why the recent rally had no legs under it (volume/O-I). Holding to a likely bear defense a close over $4.40 March. Open interest fell 2,500 led by Z/H off 5,200 amid moderate volume…no major liquidation yet.

SOYBEANS:

Exports: None Visible.

Comments: The plot thickens: IF corn DDG is cancelled, that makes for more competition for domestic meal demand? That and bio-fuels mandate obviously a depressant for soybean prices. I turned slightly negative at the right time but more based on funds creating overbought technical and discounting the bullish export news coming in. It’s Friday, January beans are into important support and a weekend awaits. However, will wait to Monday to see if we should stick our toes into the long-side waters even though 40 cents off its high. Oversold perhaps might help support a rally. Open interest fell 1,600 led by Jan. off 10,300 (rolling) amid strong volume.

Wheat:

Exports: None Visible.

Comments: Wheat had little going for it to begin with after the USDA report. Now with possible further losses in corn its looses that that edge. Only 4 Chigo. deliveries while in K.C. there were 44 all issued by ADM house, stopped street. Open interest rose 3,670 on moderate volume as funds keeping a choke hold on big short-side profits. No opinion change.

Kleist Comments

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

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