Kleist Comments

MORNING GRAINS 3/26/14
MORNING GRAINS 3/26/14

Corn:

Exports: None Visible.

Comments: I believe the real battle on the USDA report will be between those that think the feed usage number was well overextended (includes cattle on feed totals; PEDv; and the Pig Crop possibly) and will boost old crop carryover. In the acreage, unless a major deviation from the norm (avg’s.) it will still be a case of “will it eve get all planted”, then will “it ever avoid a drought” and finally “will it survive an early freeze” from the usual type of crazies. For now, the specter of -too-cold will delay plantings- already playing out to a degree. Closet bulls whisper it in private. Otherwise, no surprise open interest little changed at up 1,100 amid light volume.

By the way, I read that in the last 5 years or so this report produced a price move of +/- 20 cents.

SOYBEANS:

Exports: None Visible.

Comments: The plot thickens? One across my desk said that China crushers “re-sell” Brazil beans to the U.S…….for April-July shipment. How very curious but explains perhaps why there has been no reports of soybean smuggling on our EastCoast. Does that also mean eastern feed mills were OK with their current supplies? Thought we ran out? An old school major trade source, Oil World, says South American production will be 151.45mln.m/t’s vs. 150.6mln. prev. Price action last 5 years reportedly at +/-36 cents. Open interest little changed in total amid very light volume.

Wheat:

Exports: None Visible.

Comments: Looks like a consolidation here but will note May Chicago does not STAY strayed from the $7.00 for long. Not much new here or elsewhere (E.U. wheat) so we’ll chew on the drought in the southwest. Open interest little changed in total and individually amid moderate volume.

Kleist Comments

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

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