Kleist Comments

MORNING GRAINS 6/13/14
MORNING GRAINS 6/13/14

Corn: ***FRIDAY THE 13TH!…
Exports: None Visible.
Comments: News very quiet after a big week: Informa supposedly out at 10:30 on acres; weather market weekend perhaps providing some support; short-side saturation? as open interest rises another 7600 even as July falls 19,600 amid strong volume; on longer term charts, July has significant support roughly $4.50-4.35 (spike low $4.21-3/4 on a USDA report); currently a ‘double low’ at $4.39-1/2; some talk crude oil’s (and CRB) rally could spill over to grains.

SOYBEANS:
Exports: None Visible.
Comments: AS the July contract fell to the $14.00, for now I am satisfied the squeeze was wrested out of the old crop, though a month late to me. Now we can leave that contract and concentrate elsewhere so yes, neutral right in here. As for the November there’s still that head & shoulders formation that seems right. Informa’s numbers at 10:30 might cause a whipsaw and there’s a weather market weekend ™ that might help support along with oversold technical. Open interest fell 2700 led by July off 21,700 (still 2nd highest total, except for the November rather low other months) amid robust volume. August’s premium might also be another near term target.

Wheat:
Exports: None Visible.
Comments: Very quiet. Prices have been dependently lower as funds make up for time (and previous long corn) shorting the hell out of it. Trouble is, every time one looks for a sustainable rally the echo’s of ‘pricing out of exports’ rings true. Hence any rally buying day trade only. Downside? $5.60-ish are New Year’s lows.

Kleist Comments

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

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