Kleist Comments

MORNING GRAINS 5/09/13
MORNING GRAINS 5/09/13

MORNING GRAINS 5/09/13

Corn:

Exports: So.Korea buys 68,000t corn, 55,00t feed wheat opt/org.

Comments: Weekly export sales fell 65% to 115,800t as the “squeeze” does its thing; even new crop only 169,900t…all this begs the question: importers not panicking as our traders tout the low stocks, planting delays, why? Because our competitors have ample feed supplies for sale at better price? By the way, ethanol production last week fell 1.6% and for the year off 6%, again why do our prices need to go much higher? Oh, right….planting delays. Not a wide-spread bull belief as per recent open interest numbers. USDA TOMORROW likely to hold things together across the floor but action should be choppy.

SOYBEANS:

Exports: Sold China another 110,000t new crop.

Comments: Weekly export sales: as a %, sharply higher, as a quantity light at 193,800t (prev. wk. (-) 109,000t); meal sales a marketing year low 34,400t (like beans, just a domestic squeeze, eh?); soyoil a nothing 900t; new crop beans just 391,700t with China 360,000t of it. Beware the old crop. Another rumor floating around that Brazil has 3 cargoes of beans steaming to the U.S…another reason to not get too bulled-up in the July. Or just play in and out. In fact, I paraphrased a Winston Churchill quote as per the last couple week’s volume/open interest in the beans: never have so few done so little to bull up the market. But, even though July looks toppy around the $14.00 area, nothing bearish is confirmed. Nonetheless, a close/move over $14.22 and I back off again being bearish. China futures lower on Improved global weather (our traders HATE to do that global thing when not a problem); China’s CPI higher than expected, up 2.4% led by food up 4%.

Wheat:

Exports: None Visible.

Comments: Weekly export sales rose 9% to……239,200t (even new crop a slim 226,300t); Canada Prairies and U.S. northern plains to northern Midwest: frost possible? Not much else around. No opinion change.

Weekly beef export sales 10,100t, off 30% on week; Pork 9,600t vs. 8,000t week.

Kleist Comments

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

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