Kleist Comments

MORNING GRAINS 3/6/14
MORNING GRAINS 3/6/14

Corn:

Exports: None Visible.

Comments: Weekly export sales: rose 81% to 1.52mln.m/t’s, of note Mx. buys 437,400t, Unknown 207,100t, Japan 342,400t (88,000t of it switched) and South Korea 134,300t (65,000t switched) and China cancels 71,500t; shipments up 33%. I cannot argue with the demand numbers. Technicals still holding up well, nearby support $4.75-4.70 May.

Del. 225, Term stops 218; Ethanol del. 99, ADM puts out 99-Term stops 25; U.S. gulf corn and wheat supported by the Ukraine crisis; ethanol production last week up 11%; open interest fell 9,00 led by three months: H/K/N, amid strong volume.

SOYBEANS:

Exports:

Comments: Weekly export sales up sharply to 772,700t (wonder if that what put in last Thursday’s high?) led by Unknown at 469,000t, then Mexico at 193,600t while China cancels 268,300t; meal sales up strongly to 232,800t and soyoil sales up strongly to 16,900t. I don’t know guys, seems China cancellations merely find a different buyer indicting importers are spooked. Del. 0; meal 1; soyoil 213; Southeast Asian ‘dry spell’ reduced Malaysian palm oil in Feb. by 14%; China getting some bad press over its economy, latest one from Asian rubber traders saying demand from them is poor indicating less heavy truck tires (construction). Reports also indicate their meal demand weak after bird flu and hog herd reductions.

Open interest fell 8,000 but led by H/K/N off 10,300 amid decent volume; is May meal forming a ‘distribution high?’ It has been a battle to be bearish and while I believe the high was Putin (get it, put-in?), there needs to be a close below the hollowed ground of $14.00 to support near term.

Wheat:

Exports: None Visible.

Comments: USDA Monday to make for nervousness across the floor. Weekly export sales rose 52% to 556,100t led by Mx. at 213,000t and of note Brazil 93,100t and China 60,000t with Unknown buying 63,600t; Australian Bank says Ukraine supply fears ease BUT a “developing drought” (is happening). Trading affair for now.

Open interest fell 2,100 led by May off 2,795 amid moderate volume.

Kleist Comments

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

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