Kleist Comments

MORNING GRAINS 6/03/13
MORNING GRAINS 6/03/13

MORNING GRAINS 6/03/13

Corn:

Exports: None Visible.

Comments: Rainy weekend with reports of more planting delays and likely re-plantings in flooded areas, mostly central/western areas (“washed out” areas reported in central Il.); NOAA sees above normal temps. for June; India’s summer monsoon rains timely, arriving on time in southern states over the weekend; open interest rose 16,000 amid moderately good volume (hello funds); C-O-T report leaned decidedly negative in a major turnaround from the previous two weeks; July corn bumping at its months highs at $6.69-6.69-3/4 and likely taken out, if so look to the gap at $6.76 to be filled.

SOYBEANS:

Exports: None Visible.

Comments: Rains causing planting delays and perhaps needed replanting’s in some areas; Asian CPO higher on CBOT and hopes for a lower Malaysian palm oil production; U.S. So East areas still generally favorable conditions; China futures higher with CBOT as meal rallies 2.5%; North China Plains gets needed rains but weather turns warmer; open interest rose 12,000 amid good volume; C-O-T report: turned to just neutral/negative. Looks like July wants to totally negate its ‘reversal’ by trying to take out that high at $15.46-3/4. Weather market psychology remains intact, just beware the air.

Wheat:

Exports: Egypt buys 525,000t opt/org.

Comments: GMO findings still a problem for U.S. exports but I suspect importers are using as leverage for other suppliers (futures also telling us that); don’t get me wrong, I still see a case where July Chicago not competitive but those that shorted the news made it overblown perhaps; once the ‘contamination’ issue is resolved (it was only the soft white variety I believe), U.S. wheat will back in the mix. The overnight action seems shortcovering on the back of beans/corn. Russian spring plantings reported down 6.4% on year due to weather in southern sections; some flooding reported in Germany, Czech and Austria doesn’t seem all that serious but an item to chew on; southwest U.S. still dry, other areas favorable for HRW; open interest rose 5,100 (knee-jerk reaction shorts to the GMO?) amid good volume; C-OT report: leaned neutral; July overnight hits a two-week high at $7.14-1/2, likely needs outside support to keep it here or higher.

Kleist Comments

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

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