Kleist Comments

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

Markets reopen Monday night at 7:00p.m.

Corn:

Exports: None Visible.

Comments: Well, the soybean market making bears question ‘why be short corn’? Certainly corn has seen buy-money keeping moving into the corn as open interest rose 7,000 amid heavy volume. As mentioned, a major battle is being waged here. So to the beans, which the bulls won in this current battle. Bunge says will likely see record profits on large crops in north and south America, also says will NOT handle GMO corn not approved by China; India sees record high feed grain production; March corn needs at least a close under $4.37-1/2 to possibly get some downside momentum; so, I’ll see if I can be wrong the “trifecta” and maintain a likely bear defense over $4.50 straight for now.

SOYBEANS:

Exports: None Visible. (and NO China cancellations announced!)

Comments: One reason to use defense points is this: how does one fight something like open interest rising 13,000 amid big volume? Commercials can afford it, I cannot and as such exited yesterday. Hopefully tactical failure will still see strategic success but for now neutral and a technician. Open interest also rose 6,300 in meal and 5,200 in soyoil with big volume. A close back under $13.40 a bull-warning flag but a close under $13.20 seems a better area. Next upside the Sep. highs at $13.77-3/4?

Wheat:

Exports: None Visible.

Comments: A lot of hand-to-hand fighting lately in wheat and near term have been overrun. Fresh news is mixed here: Europe sees concern over the western areas due to excessive rains and flooding while India see a record high crop of 95.6mln.m//t’s AND mandated reserves 60% more than needed. Open interest little changed in total as March falls 5400 amid good volume.

If probing short side, a close over $6.00 the likely bear defense.

Kleist Comments

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

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