Kleist Comments

MORNING GRAINS 5/01/13
MORNING GRAINS 5/01/13

MORNING GRAINS 5/01/13

Corn: HAPPY MAY DAY HOLIDAY E.U./ASIA…..

Exports: None Visible.

Comments: 1st major ethanol plant in U.S. in 1984 located in Indiana slated for demolition for scrap after being sold in bankruptcy; NOAA says May temps. will be above normal after last estimate of above normal; USDA S/D report May 10th getting in the news a first knee jerk reaction? Yields will be lower on delayed plantings. Open interest fell 11,000 led by May off 12,100 but also July off 8,700 (curiously July was the weak link late yesterday…some longs exiting?), volume was strong; looking to exit July calls (equity protection from planting delays placed last week). Refer advisories.

SOYBEANS:

Exports: None Visible.

Comments: Not much news around: soyoil deliveries 1010; China’s PMI weaker than expected, effecting some commodities such as crude oil; China’s major north areas getting improved rainfall, some minor bean areas south finding plantings delays; open interest fell 1,100 amid moderate/light volume; the overnight action reflects the ‘air’ nature of yesterday’s rally; close over $14.10 July the likely bear defense if non-bull believers (and well-heeled specs) selling rallies in here.

Wheat:

Exports: None Visible.

Comments: Got involved in another whipsaw in the wheat but will look for another speculative selling opportunity; deliveries 460 and all street; frost/freeze possible to Texas Panhandle Friday morning?; open interest fell 5,500 spread across the K/N/U contracts (shortcovering push explains late rally, eh?).

Is this unusual? +28,000 sugar deliveries?

Kleist Comments

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

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