Kleist Comments

MORNING GRAINS 6/12/14
MORNING GRAINS 6/12/14

Corn:
Exports: None Visible.
Comments: Weekly export sales 409,700t, down 26% and routine, of note Unknown cancels 241,800t; USDA S/D report out of the way and now we look to the quarterly stocks and planted acres end of month; weather outlooks seem great overall; Maquerie Bank (Aust.) says China will not meet our USDA import estimate; open interest rose 9,000 even as July falls 30,500 amid heavy volume. No opinion change. Need a rally spark to correct some.

SOYBEANS:
Exports: None Visible.
Comments: Uh, Oh! Old crop export sales more than DOUBLED the previous week to……86,700t, led by Indonesia at 41,500t and they got an ‘unknown’ kicker included of 25,000t; meal sales fell 10% to 59,500t; soyoil up sharply to 71,800t led by Unknown at 40,000t (beware cancels next week); July beans into important support at $14.50-14.40 a prices approach 2-1/2 month lows. A weekend coming up and couple positives? 1) no increase in soybean imports on yesterday’s report; 2)new old crop sales last week; oversold technical, etc. all combined perhaps hold a consolidation? Will the bulls go to the well once more and make this the gift of the century? I have not changed my mind here and the only ‘protection’ was covering hedge equity for now. Open interest fell 4400 amid strong volume.

Wheat:
Exports: None Visible.
Comments: Weekly export sales a (-) 75,700t old crop, 570,100t new crop led by Brazil at 167,600t; total sales carried over from marketing year to new marketing year 2.1mln.m/t’s; India’s heat wave in north/central needs to see rains forecast the next 7-10 days; open interest rose 5600 led by December up 4700 amid very strong volume. A good rally or two would relieve grossly oversold conditions but the ‘why’ and from ‘where’ not evident. New crop sales did increase significantly from the previous week, maybe it will help.

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.