Kleist Comments

MORNING GRAINS 12/30/13
MORNING GRAINS 12/30/13

Corn:

Exports: None Visible.

Comments: South American weather: rains over weekend, rains seen rest of week? Then of course there’s that pesky fear of China cancellations and deep-seated fear of the ethanol mandate structure. Open interest rose 12,200 (amazing considering the short trade) led by March up 10,000 (a South American weather trade?) amid very light volume. Some chart hope for the bulls was largely negated and now we’re back merely to hope the $4.20-4.18-1/2 area will hold. In bigger picture, no reason to change our bearish defense area technically.

SOYBEANS:

Exports: Sold Unknown 35,000t soyoil.

Comments: Happy Lunar New Year as global vegoil demand heats up for January; 1st notice day tomorrow (likely limited deliveries but not betting my life on it due to several factors); again more favorable South American weather; open interest fell 14,300 led by Jan. off 17,500 amid light volume. Wish we had the delayed C-O-T report to see if I can confirm what still looks like a mini-distribution top being formed. For now, just beware a move/close under $13.09 while treating as a trading affair.

Wheat:

Exports: None Visible.

Comments: Nothing new really, at least that I can find. Open interest rose 1600 led by March up 1,100 amid very light volume. Some talk of ‘basing’ around the $6.00 area but my take is that $6.00 is just a sentimental favorite trade area 1st couple times down. If bottom picking, conservative traders should use options (not a trade rec.).

Kleist Comments

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

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