Kleist Comments

MORNING GRAINS 5/1/14
MORNING GRAINS 5/1/14

May 9th USDA S/D report.
Corn:
Exports: None Visible.
Comments: Weekly export sales rose 52% to 937,900t led by Japan at 587,800t of it, Unknown cancels 145,800t and China 18,800t; shipments drop 25%; as for plantings, some areas like Indiana getting along but other areas like Iowa not so good; deliveries 9 (hey, it’s the intent not the quantity), Term delivered 3 of them; Saxobank analyst said Agri-comodities very strong on funds due to the Ukraine mess but also said “…one may question (if) too long”; open interest fell 6,700 led by May off 3700 amid light-side volume. I am satisfied that the corn rally wasn’t JUST Ukraine/wheat/weather/beans-meal related: export demand was the prime supporter. However, now it’s ‘old news’ perhaps. I am keeping my powder dry on new shorts just for now and spec-wise consider a trading affair.
SOYBEANS:
Exports: None Visible.
Comments: Well: weekly export sales fell to a minus (-) 16,400t and a marketing year low, with Unknown cancelling 154,200t/China 5,000t and surprisingly Mexico 19,800t; meal sales fell 24% to just 140,900t and soyoil off 91% to a nothing 500t; deliveries bans none/meal 19/soyoil 2336; open interest fell 5400 led by BOTH May and July off 8,100 amid light volume. Once again this bull market looses open interest and volume on the way up.
Now, I am working on some information that passed my way concerning Brazilian beans in or near La., Ala., Va. and Wilmington plus 3-5 cargoes in Brazilian port loading for the U.S.
Since much information has been ‘in the future’ so to speak we’ll keep at it.
Wheat:
Exports: None Visible.
Comments: Weekly export sales fell 37% to 214,900t, includes a cancellation of 110,000t from Unknown….hello $7.00 curse, eh? Drought/Ukraine vs. export demand the ‘why’ of the whipsaws then; INF OK’s $17bln. to Ukraine, $3.2bln. available immediately (takes care of things like panting inputs?); deliveries 113 all street; southwest dry and ‘very cold’ next couple days; open interest rose 2900 led by July (May off 3500) amid moderate volume. Playing the game as before.

Kleist Comments

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

Disclaimer: Trading options and commodities involves risk of loss and my not be for every investor. Past trading results may not be indicative of future performance. Although information and opinions provided herein are compiled from sources believed reliable, the sender, EBOT Trading, or its principals cannot attest as to accuracy or assume any responsibility for any errors or omissions as the information may not be complete or events may have changed.