Kleist Comments

MORNING GRAINS 6/17/13
MORNING GRAINS 6/17/13

MORNING GRAINS 6/17/13

Corn:

Exports: So. Korea buys 55,000t opt/org. feed wheat and 140,000t Black Sea corn.

Comments: Another clue as to future global feed buying patterns I have mentioned from time to time for months: So.Korea’s Black Sea buy the first ever and cited high U.S. prices and Brazilian port congestion as a reason (not to mention discount, eh?); let’s be the first to uncover what’s said at secret bull-broker meetings: not enough sunshine for the crops! I bring that up in conjunction with a Skilling report I came across that said June sunshine 65% of normal; open interest fell 1600 even as July falls 19,100 amid moderate volume; C-O-T report: slightly friendly. For all the bullish talk around, the July ‘squeeze’ masking the fact December corn remains in a solid downtrend (even July merely just a volatile trading affair).

SOYBEANS:

Exports: European buyers take 80,000t non-GMO India soymeal.

Comments: Part of the Euro reason was also due to Brazilian port delays (seems to be purpose lately to jack prices up); India’s early monsoon indicates to them a good harvest and in west-central areas plantings couple weeks early; China futures lower following their soymeal on talk of large imports the next two months; open interest little changed in total amid light volume (looked like some July/Nov. rolling in quantities though); C-O-T report: leaned decidedly bearish. For all the talk of a squeeze, July beans have been thrashing around and not making any ‘keep-able’ rallies (new highs fail again).

Wheat:

Exports: Indonesia buys 70,000t Australia.

Comments: USDA’s reply to the GMO finding to importers: “isolated incident”. Asia not so sure apparently. Open interest fell 5,300 led by July off 14,400 amid strong volume; C-O-T report: looked neutral. July wheat sliding to range lows and as such might be looking at contract lows at $6.64-3/4. Close over $6.84-1/2 might stabilize the decline.

Kleist Comments

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

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