Kleist Comments

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

Corn: ***FINANCIAL MARKETS IN TURMOIL**************

Exports: Sold Japan 47,000t old, 164,500t new crop; Sold So.Korea 140,000t old crop.

Comments: Deliveries 4 nothing again and I guess why not no deliveries? I brought up the Ukraine deal before, and now it apparently means something to the market. Just tough to act on that but it did force me to wait until this week, as mentioned, before selling short anything. Dumb luck? Maybe so. What we have: Ukraine now exports 16% of the world trade in corn; “several million tonnes” of sold corn await shipment, including sales to China. World-wide stock markets fall, crude oil rallies and gold sharply higher and the main beneficiary psychology wise Wheat sharply higher. Open interest fell 7,000 led by March off 12,000 amid good volume; C-O-T report: leaned bearish again but as mentioned, commercial have much more margin money than we do.

SOYBEANS:

Exports: None Visible.

Comments: Some problems with Matto Grosso; no China cancellations; Canada Canola group says unsold grains force farmers, cash-strapped, to ask for loans for plantings; del. 17 /meal 1/oil 1,042; open interest little changed in total amid moderate volume; C-O-T report: leaned bearish once again but……. For me, have to let the smoke clear across the floor.

Wheat:

Exports: None Visible.

Comments: Sharply higher as Black Sea exports are threatened by the Russian moves in the Ukraine region. Under the circumstances, who will buy Russian wheat?; E.U. futures sharply higher, up 4.5% on the news; Ukraine reports plantings “on time” but who knows?; Russian plantings also on track; U.S. “no damaging cold” reported; open interest fell 2,900 led by H/K amid moderate volume; C-O-T report: leaned friendly.

Kleist Comments

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

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