Kleist Comments

MORNING GRAINS 2/12/14
MORNING GRAINS 2/12/14

Corn:

Exports: None Visible.

Comments: Weekly export sales fell 25% to 1.27mln.m/t’s but still decent, though perhaps the rally eased demand some. China cancelled 228,000t ands major buyers Unknown 421,900t, So.Korea 233,500t had no “switches”. Open interest rose 17,600 amid heavy volume and considering the apparent narrow ranges it is a battle royal. Likely bear defense remains a close over $4.50, I’m siding with the commercials here.

SOYBEANS:

Exports: None Visible.

Comments: Weekly export sales fell hard to 173,600t, of which China buys 320,700t and Unknown cancels 326,900t; meal a marketing year low of 18,700t (wonder why meal has been losing to oil?); soyoil 53,300t led by China at 35,000t (refilling Lunar New Year?). Also of note, March meal had a reversal yesterday after making new contract highs. Are the bulls armor getting dented? Open interest fell 7,200 led by March off 19,000 amid strong volume. No opinion change, likely bear defense a move/close over $13.43 (raised 3-cents). I still side with the commercials (via the C-O-T report).

Wheat:

Exports: None Visible.

Comments: Weekly export sales fell 7% to 597,000t led by Japan at 194,500t, not bad overall and I give wheat some benefit of the doubt as higher prices not materially denting demand….yet. Janet Yeller in testimony yesterday said basically she’s more worried about a ‘farm bubble’ than in stocks…one has to ponder perhaps: predicated on lower grain prices? Exports? No opinion change, move/close over $6.03 (raised 3-cents).

Kleist Comments

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

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