Kleist Comments

MORNING GRAINS 4/30/14
MORNING GRAINS 4/30/14

EVENTS coming: May 1st…35-cent daily limit; May Day celebrations; May 9th USDA S/D report.
Corn:
Exports: None Visible. development
Comments: Two things here perhaps for the corn weakness: 1) not everyone bulled-up on delayed plantings (I’m in that camp); 2) all the after market hours of “new” fund buying talk not backed up really in the open interest numbers, if fact just the opposite. Open interest fell 5500 led by May off 23,700 amid good volume…hence most of the ‘buying’ just rolling and not ‘new’ and that total open interest lost ground again. Underlying support though likely still from plantings delays, if beans/meal rally back and a report major banks advocating long commodities as a hedge against the Ukraine/Russian dilemma (this is a tricky one).
May corn came so far to not test/take out contract highs a disappointment. For now.
No deliveries a no brainer today but doesn’t mean there will not be any later.
SOYBEANS:
Exports: None Visible.
Comments: May 1st $1.00 daily limit (goodbye elevators if upside); no bean deliveries of course and no meal but soyoil did 2,596 with typical street machinations; May and July beans failed, so to speak, at contract highs but so what? for now; here also open interest fell2200 led by May off 15,400 amid moderate volume; Malaysia palm oil (cpo) rallies on higher April exports (ahead of a summer muslin holiday) and higher soyoil prices. Nothing new on China nor Brazil nor Argentina stuff.
Wheat:
Exports: None Visible.
Comments: With the Wheat Quality Tour: 1st day 34.7bu./acre vs. 43.8bu. year, not a terribly surprising number; some deliveries: MGX 453 all put out by Term, Chgo. 144 by Term as well (curious a commercial doesn’t know there’s a drought here or about major banks suggesting buying commodities against the Ukraine/Russian crisis); May 1 daily price limit 50-cents; open interest FELL 4,100 led by May off 5,400 amid good volume. As before, letting the wheat soak awhile.

Kleist Comments

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

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