Kleist Comments

MORNING GRAINS 12/17/13
MORNING GRAINS 12/17/13

Corn:

Exports: Sold Japan 278,384t new crop; sold So. Korea 62,000t old crop.

Comments: Buying new crop is good and bad: importers secure coverage in case of U.S. crop problems but IF other sources are cheaper 1stQ they might turn away. China and the Mandate still a ‘fear factor’ and one report puts it in perspective: sold China 5.7mln.m/t’s and shipped at 3.7mln., though I doubt all that would be cancelled. The Fed. apparently broke up a China Nationalists gang (2 people) that allegedly stole U.S. “advance seed” technology (hmmm, that would be GMO would it not? Your lips tell me no-no but there’s yes-yes in your eyes?). Open interest rose 2,300 amid light volume. No opinion change.

SOYBEANS:

Exports: None Visible.

Comments: Here’s a ‘radical’ idea: cold the bean market trying to ration demand as our carryover keeps declining? In other news: Brazil gets rain apparently where needed and more coming; Asian CPO continues downward and making soyoil even more competitive; open interest rose 6,100 even as Jan. falls 7,380 amid moderate volume (funds adding to longs might be a problem at some point). Still basically in a 18-day trading range, needs a breakout. Is the current range looking like a mini-’distribution top’? I still tilt friendly but not necessarily from up here yet.

Wheat:

Exports: None Visible.

Comments: Gee, how quiet is it? No fresh news I can find. No visible exports and past weekly export sales seem to mean prices need to drop to a level where we buy ourselves back into consumption? Not sure where that level might be. Open interest little changed in total or individually amid light volume.

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.