Kleist Comments

MORNING GRAINS 6/2/14
MORNING GRAINS 6/2/14

Corn:
Exports: Jordan in 100,000t barley opt/org.
Comments: New swing lows overnight likely predicated simply on weather conditions and a lack of visible export demand. Plantings looks like 93-95% completed; 1st of the crop ratings and trade talk is 72-75% gd./excel., not too far
off the record of 78% back in 2007 I understand; open interest fell 2600 led by July of 11,270 amid moderate volume; C-O-T report: basically a classic bullish reading as commercials and funds change positions: funds do large, new add-on short positions while commercials take a large (near equal) chunk out of their short positions. But it’s an evolving change of ownership usually. Last week I looked for a consolidation to develop in the July and it did for a couple days. Now we have to consider the next downside objective a ‘double low’ from Feb. 28th, at $4.57-1/4.

SOYBEANS:
Exports: None Visible.
Comments: Good weekend overall for plantings and those already planted; plantings seen at 72-75% complete on today’s crop report; more talk of higher bean acres due to corn’s lateness but…..; open interest rose 1400 amid light volume; C-O-T report: leaned bearish this time; July beans have been stubborn and holding nearby support in the $14.80’s; call me when we are in the $14.60’s because I have not changed my gears at all.
Wheat:
Exports: Jordon in 100,000t opt/org.
Comments: New swing lows here; new 3-month lows in Euro futures all predicated on improved U.S. weather, Black Sea weather and a favorable Europe; open interest rose 2100 even as July falls 3200 amid decent volume; C-O-T report: leaned friendly with new swing lows we look for any chart ledges to possibly shoot for: A near double low at $6.12-1/2-6.10-1/2 from Feb. 28th (like corn’s); close over $6.48-1/2 just to ‘right’ the market.

Kleist Comments

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

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