Kleist Comments

MORNING GRAINS 3/4/14
MORNING GRAINS 3/4/14

Corn: ***FINANCIAL MARKETS COOLING OFF**************

Exports: None Visible.

Comments: Deliveries 304, all street, seemed to weigh on corn this morning; I understand Informa will be out at 10:30a.m. with estimates ahead of Monday’s USDA S/D report; Ukraine ports largely unaffected by Crimea crisis and major U.S. commercials report no problems; reportedly Ukraine has 4.0mln.m/t’s sold but not shipped; curious battle yesterday after making a new swing high and closing off its low: open interest rose 18,800 even as March fell 8,100 and amid record or near record high volume; the structure remains at ‘contango'; as Yogi would say “it ain’t over ’till it’s over” but there are reasons to not buy rallies anyway.

SOYBEANS:

Exports: None Visible.

Comments: The “reversal” remains intact; the May/March spreads widening; deliveries 94 and all street; Mato Grosso rains delays harvest and transportation issues noted; Ukraine has no beans to move; Brazil Safras 86.5mln. and USDA 89mln.; the rally yesterday? open interest fell 4800 led by H/K dn. 4900 amid moderate volume; Informa at 10:30. Ample evidence the high is in?

Wheat:

Exports: None Visible.

Comments: Ukraine ports open; talk there is 2.7mln.m/t’s of sold but unshipped wheat; commercials report no port problems; crop ratings gd./excel.: Ks. dn. 1%, OK dn. 5% and NE. dn 3%; yesterday’s rally? open interest fell 8,800 led by May off 7,000 amid record or near record high volume. Knee-jerk reaction fear? Looks like the ‘bear’ is back.

Kleist Comments

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

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