Kleist Comments

MORNING GRAINS 6/25/14
MORNING GRAINS 6/25/14

Corn:
Exports: Sold Unknown 58,000t sorghum old crop, 58,000t new crop; Sold Unknown 217,400t new crop corn.
Comments: Monday’s ‘spike’ on the charts is failing quickly as weather, exports and the USDA reports Monday keep a lid on rallies it seems. While I think of it, 4th of July next week: noon close Thursday, reopen Monday morning at 8:00am. DDG prices are the lowest since last July; USDA avg. stocks est. 1.0bln.bu.; open interest fell 2,600 led by July off 23,500 amid good volume; there’s a lot of ‘hope’ from producers to hedgers to spec bulls for a bottom which usually means not likely; back to test lows at $4.35-1/2? Nothing overtly bullish around. Sorghum still competing with corn?

SOYBEANS:
Exports: None Visible.
Comments: Sideways trade continues. While the old crop ‘game’ has largely been deceased the low stocks possibly seen on Monday’s Q stocks number has July, August perhaps on life support; weekly export sales tomorrow to provide some support?; China sells only 44,700t (12.6%) out of a 354,726t state reserves auction; Asian CPO weaker on high stocks; open interest rose 8,000 led by November up 6,300 (a nice new ‘battle zone’ as November was contained either side) amid moderate volume (and November still has a head & shoulders formation).

Wheat:
Exports: None Visible.
Comments: New swing lows as wheat remains the poster boy for what is a rare global grain surplus; both Russia an Ukraine fall under year ago on harvesting for the first time but no poppy day needed for either; Brazil to cut import tax from 10% to 0% on up to 1.mln.m/t’s starting Aug. 15th; open interest fell 2,300 led by July off 7800 amid moderate volume. No idea where the bottom is.

Kleist Comments

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

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