Kleist Comments

MORNING GRAINS 2/28/14
MORNING GRAINS 2/28/14

Corn:

Exports: Sold Unknown 101,600t old crop.

Comments: Deliveries 4 nothing, I’ll wait until next week to see if it expands as mentioned; open interest fell 52,800 led by March off 53,400 (July off 5600) amid very heavy volume. The exports and light deliveries are supportive as the electronic action shows. If I have faith beans have topped out then individually I cannot get excite about buying May corn at these levels. New month coming and next week we’ll decide if new shorts are warranted.

SOYBEANS:

Exports: Sold Egypt 120,000 switched new crop FROM OPT/ORG.

Comments: 1ST China buys optional origin then Egypt takes from an optional origin and I heard talk commercials were bear spreading, buying the Nov./July and 17 deliveries (all street)?; on the charts, NOT A CLASSIC KEY REVERSAL but still an extremely ugly one (but like an un-cute child, it was still beautiful to its mother); open interest fell 14,400 led by March off 17,000 amid very heavy volume. Considering with the above and the weather in Brazil and Argentina’s good crop, any wonder I believe the “squeeze” is done? End of month might make for some volatility or better, shorts and longs were battered yesterday and a light trade expected.

Wheat:

Exports: Egypt buys 295,000t Russian/Romania.

Comments: Some talk a mid west freeze behind the rally overnight, seems to me just a thin market correction to yesterday’s pounding; Canada’s government moves to end backlog of grain shipments that hurting their farmers; no deliveries; open interest fell 4,000 led by March off 6400 amid strong volume. Like the rest, I’ll wait until Monday to reassess what certainly looks like a significant reversal backed (to me) by the falling export sales and NO certain winter death loss here. Or crop problems elsewhere. Happy birthday to me.

Kleist Comments

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

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