Kleist Comments

MORNING GRAINS 1/7/14
MORNING GRAINS 1/7/14

Corn:

Exports:

Comments: Oh baby it’s cold outside! Again. BUT, temps warm up appreciably end week/weekend. Report sees DDG’s $90 break (thanks China?) attracting more demand; deliveries: ethanol 64 but stopped by ADM House; China News Agency: 2013 saw 601,000t of DDG and ‘other’ commodities cancelled over GMO; fund re-balancing? talk they will cover 90,000 contracts here (strange: will buy under-performing/sell over-performing assets?); open interest little changed yesterday amid light volume. For now, no solid way to state a bottom is in……markets do not keep making new contract lows that are bottomed (make it only one last time).

NOTE: re-balancing is INDEX funds only and while advertised to start today, Friday’s new year) open interest was up 13,200 contracts, and yesterday’s little changed amid light volume. Hence, maybe that’s why the rally.

SOYBEANS:

Exports: Sold China 350,000t old crop.

Comments: See? Those rascally communists merely re-bought some previously cancelled at a much lower price…though futures not that enthusiastic about it so far; Deliveries 0/meal 0/soyoil 245; India’s Dec. oilmeal exports rose 3% largely with big increases to Iran (note: bartered for crude oil due to sanctions) and South Korea, of note their soymeal fell sharply as prices too high; fund re-balancing see covering 20,000 contracts (some say starts today, ends Thursday but remember INDEX funds only!); open interest little changed amid light-side volume. To get March back into its channel will take +$13.15 which could be used for a likely bear defense if selling strong rallies. China futures quiet except soyoil/palmoil sharply lower. More meal usage argument might be at an end on weather.

Wheat:

Exports: None Visible.

Comments: News: non visible. As mentioned that bulge in world export activity was largely non-U.S. and therefore our futures bulge need more to sustain. Open interest 1700 amid moderate/light volume. No opinion change as yet.

Kleist Comments

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

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