Kleist Comments

MORNING GRAINS 2/10/14
MORNING GRAINS 2/10/14

Corn:

Exports:

Comments: Well, the bell tolls at 11:00. Open interest up another 8,100 even as March falls 39,000 amid heavy volume. C-O-T report: near classically bearish on a large change of ownership from commercials to the funds. Not much to be said.

SOYBEANS:

Exports: None Visible.

Comments: USDA determines near term direction? I do not BET reports but some do. To Wit: last week’s open interest rose a total of +66,000 contracts; the C-O-T report: leaned bearish the same way corn did. Brazil dryness in RGDS and Parana expected to turn cooler and wetter later week, other areas OK (also a report port improvements will help shipments) ; Argentina currently ‘favorable’. And a wire service report suggested Argentine farmers that have been “hoarding” old crop beans (due to the Peso and inflation hedge) will be forced to ‘jump-start’ sales into March harvest. Old crop bullishness continuing is the prize here. Or the poison.

Wheat:

Exports: None Visible.

Comments: Big volume Friday likely record large as the battle heats up, with apparent ‘rolling the main feature; C-O-T report: leaned negatively and a mini-version of the corn. Some talk of Argentine export caps; talk Canada ports cannot handle its current export program; US HRW, some 0 temps but snow cover in those areas; India back to ‘dumping’ stocks? Once again wheat is at a cross-roads: a bottom or a bounce? Let’s see if the report gives us the coin toss. Odds are stacked, seemingly, against them.

Kleist Comments

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

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