Kleist Comments

MORNING GRAINS 4/2/14
MORNING GRAINS 4/2/14

Corn:

Exports: None Visible.

Comments: This morning I had an “old school” thought: IF I told you yesterday before the opening that funds would buy 21,500 (open interest up that much) contracts of corn would you think prices would only close up 4-5 cents or so? And very strong volume with it. I doubt it and I accept it as a possible bull-warning flag. Too chicken to sell it outright of course but was worth noting until another technical indicator points us that way. That’s all there is early. Some cash movement noted as basis weakens.

SOYBEANS:

Exports: None Visible.

Comments: New highs but where’s the beef? Open interest up 2,900 with May off 5,800 amid moderate volume. For many days now there’s not a lot of traders coming into the bull-dance like say in the corn. Is this an extended Squeeze? I am trying to get more details on some talk China about their crushers bleeding Red Ink and with credit issues and forcing them to price it differently and implied when done THEN we’ll see cancellations blossom. Hate this intrigue and wish I had more on it. Just another head scratcher for beaten up bears. In other news: basis here and in South America weakening on increased cash sales. I was not smart enough to get long but I nonetheless remember that a long, long time ago (less than 2 weeks) prices broke about $1.00 in 3 days.

Wheat:

Exports: None Visible.

Comments: Had a handle of sorts here anyway yesterday putting ‘meaningful’ support at $6.80-6.70, a close under likely extends the break especially if corn fails. Hate to say it but to me wheat has acted about right after its USDA report, and that it’s too early to equate U.S. weather with world wheat supplies. Open interest rose 3,200 amid good volume. Only bullish thing might be that I suspect there was solid corn/wheat spreading that might reverse at some point. For awhile.

Kleist Comments

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

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