Kleist Comments

MORNING GRAINS 5/12/14
MORNING GRAINS 5/12/14

NOPA crush; Wed. last trading day May contracts.

Corn:
Exports: None Visible.
Comments: Some reports suggests a bunch of plantings got done in some areas last week though this week possibly a problem with rains and cooler temps?; progress could be 55-60% tis afternoon; Argentine harvest said 29% complete (beans 64%) on 2nd crops; Open interest little changed in total but decent, apparent ‘rolling’ out of N into the Dec. contract (we keep losing old crop) amid very strong volume; C-O-T report: leaned bearishly.
SOYBEANS:
Exports: None Visible.
Comments:

Brazil reports its major corn area of Mato Grosso seeing favorable conditions; Asian CPO modestly higher on higher exports pre-Ramadan celebrations end of June; del. 65; U.S. plantings in southern midwest seen limited on variable rains; USDA progress estimate 15-20%complete; open interest little changed in total, of note July off 2800 and Nov. up 4,000 amid moderate volume; C-O-T report: leaned bullishly; China crusher: 1Q profits off 49% due to higher imports, lower use of feed due to bird-flu, and the government slowdown… sees 2ndQ “…not worse” (point being I doubt China crushers are all now walking down the ‘ yellow brick road’ to Chairman Oz); my initial rec is selling July over $15.00 but for those more daring I am using $14.80-14.90 area, more daring because likely risk new highs. Hey, it’s beans after all.
Wheat:
Exports: None Visible.
Comments: This is what happens when one thinks the U.S. is an island i.e. weather problems here impact the world; del. 22 here and KC 42; Russian reports grain crop at 93mln. up .5% on yr. (wheat though off .2% on less acreage…no big deal); Ukraine/Russian crisis still bantered around but not enough individually to help much in here; open interest rose 4,800 after a bearish GLOBAL report from the USDA, volume light-side; C-O-T report: leaned slightly negative. No urge to sell it 15 lower right now but will advise.

Kleist Comments

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

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