Kleist Comments

MORNING GRAINS 12/6/13
MORNING GRAINS 12/6/13

 

Corn:

Exports: Sold Mexico 132,600t old crop, 33,150t new crop.

Comments: Report out of Asia reflected U.S. fears: will China’s GMO rejections spread and cause global prices to fall? Curiously they recently bought a “GMO-strain” from Argentina. Keep in mind, everything China does is political and domestic prices are down on higher imports; corn production record large up 4.6% on year; BUT domestic consumption seen up 7-8% yearly. U.S. export sales reported at73% of total vs. 50% on average; Agroconsult sees Brazil’s crop at 76.1mln.m/t’s vs. 75.7ml. prev.; deliveries 29 stopped by ADM house; open interest rose 2,900 led between H/K/N amid light volume. We need at least a close over $4.40 March to hint of anything better.

SOYBEANS:

Exports: Sold Unknown 189,500t old crop, 195,000t new crop.

Comments: I swear I saw another 111,000t new crop sales but cannot ‘re-find’ it; total export sales 95% vs. 69% avg.; India Nov. oilmeal exports: soymeal off 2.67%, Rapeseed meal dn. 58% on lower domestic stocks after damaging heavy rains; Agroconsult sees Brazil’s crop 90.7mln.m/t’s vs.86.0mln. prev.; RUMOR: Argentina to lower export tax by 15% to encourage farmer sales (that’s likely behind the electronic break); open interest rose 2600 even as Jan. falls 11,200 amid moderate volume; March beans flashing a bull-warning flag under $13.09, likely nearby bull defense a move/close under t/l support at $12.90…maintain trading affair.

Wheat:

Exports: None Visible.

Comments: Deliveries 139 stopped by Term & ADM, a bit friendly?; total export sales reported at 76% vs. 70% avg.; USDA’s December report historically no major changes (Jan. report a different story); open interest rose 1,500 led by March up 1130 amid moderate volume (cannot blame the funds, it’s been profitable to sell); $6.50-1/2 the new swing low in March and I’m aside specs.

Kleist Comments

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

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