Kleist Comments

MORNING GRAINS 12/24/13
MORNING GRAINS 12/24/13

*****A very merry Christmas to you all, thanks for everything………….

Corn:

Exports: None Visible.

Comments: EARLY NOON CLOSE. Argentine plantings said 70% completed vs. 73% avg.; Argentine weather hot & dry now, rains end week/weekend; open interest dn. 1700 amid light volume. 5-week high in March corn might be the signal for the ‘seasonal’ rally between Christmas and New Years. I am keeping the +$4.40 defense area but is some wish to probe the long side, perhaps call options more in order than futures.

SOYBEANS:

Exports: Sold Egypt 114,000t old crop, Sold Unknown 65,000t; Sold Unknown 120,000t new crop.

Comments: No sign of China cancelling anything more yet and in fact I still find it interesting we sell a slug of new crop instead of buyers opting more for shipments out of South American new crop; Asian CPO at 2-week highs on lower Dec. palm oil production/currency considerations/ Indonesian port strike (our soyoil reported o/I off 4,600, curious?); Brazil weather said favorable, dry spell then next 5 days with rains possible; Argentina hot and dry for 5 days but rains and cooler temps. seen end week/weekend; China’s “credit crunch” possibility effecting other commodities like rubber futures (in fairness, Asian stock markets rose some but said its Santa rally would not be denied); open interest fell 1700 amid light volume. January beans have a chance this week to re-test the $13.40′s and if so, will see if our possible ‘distribution top’ theorem remains intact.

Wheat:

Exports: None Visible.

Comments: Argentine crop conditions favorable as are conditions for an early harvest; Australia reports favorable conditions; open interest little changed amid rock-bottom volume. The March of the March contract towards $6.00 continues.

****NO CLOSING COMMENTS UNLESS CONDITIONS WARRANT IT…..

Kleist Comments

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

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