Kleist Comments

MORNING GRAINS 2/26/14
MORNING GRAINS 2/26/14

Corn:

Exports: Sold Unknown 101,600t (beans making importers itchy?).

Comments: 1st Notice Day Friday; Brazil sees planting delays on winter crops due to rain and causes harvest disruptions; Argentina OK; open interest fell 17,900 led by March off 15,900 amid strong volume; March corn’s $4.56-1/2 ‘double high’ likely at risk, obviously; nearby support $4.50 (10-day m/a held for last two days) and then to $4.45-1/2.

SOYBEANS:

Exports:

Comments: First notice day Friday and shorts are (were) still very much on the defensive and remember our business is part ‘money game’; seems perfectly logical China buying beans from the U.S. when South American beans are $1.00/bu. cheaper (cheap is relative?); speaking of China, their crushers are bleeding red ink as meal demand apparently collapsed over recent blow out of bird flu; for Brazil, reportedly in Parana the state Ag guy said drought losses could be “up to 2.0mln.m/t’s), rest of country apparently seeing more rains and with them some harvest disruptions in Mato Grasso; open interest rose 4,000 even as March drops 15,900 amid heavy volume; Nearby support $13.85-13.97, $14.00 ‘barrier’ could just be a bear trap until futures reopen. For nearly a month in hindsight its been easy to buy breaks.

Wheat:

Exports:

Comments: 6-day trading range and the multiple highs just under $6.20-1/4 many times means they will be taken out, perhaps tomorrow’s weekly export sales will suggest if export demand will slip again or just an aberration; 1st notice Day Friday; open interest fell 13,750 led by March off 33,500 (K/N off 440) amid very strong volume; Brazil rains slow winter plantings (where there’s not a drought); Australia’s summer crop could fall 25% to 4.0mln.m/t’s says Ag Office due to drought in Queensland and New South Wales; U.S. wheat said to not be in for ‘damaging cold’.

Kleist Comments

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

Disclaimer: Trading options and commodities involves risk of loss and my not be for every investor. Past trading results may not be indicative of future performance. Although information and opinions provided herein are compiled from sources believed reliable, the sender, EBOT Trading, or its principals cannot attest as to accuracy or assume any responsibility for any errors or omissions as the information may not be complete or events may have changed.