Kleist Comments

MORNING GRAINS 7/3/13
MORNING GRAINS 7/3/13

MORNING GRAINS 7/3/13

NOON CLOSE

Corn:

Exports: Japan buys 42,900t U.S. feed wheat, 2,500t Aust. feed barley; Japan in for another 120,000t feed wheat, 280,000t feed barely; So. Korea buys 55,000t corn Black Sea, 69,000t Brazil and 45,000t Black Sea feed wheat.

Comments: Asia certainly active booking feed supplies; some outside market/political moves of note with an Egypt blow out effecting crude oil shipping out of the Suez Canal; trading the day after the 4th holiday historically can be nasty; open interest rose 8,000 led by December up 6990 amid light/moderate volume; I cannot press the December at/under $5.00 just yet and this time August bean weather might be as important as July corn weather.

SOYBEANS:

Exports: None Visible.

Comments: Cool temps now, warm up next week; Brazil trucker’s strike still on but port operations said unaffected for now; outside markets supportive; CPO in Asia higher on crude oil over $100.00; Chin futures a bit higher on talk of better meal demand on hoped for higher pig usage (when prices down it’s because of heavy South American arrivals); open interest fell 4,500 led by November off 3,30, volume light-side; November has held its broad range from last May on the low end and consolidating. I’d rather press a downside breakout than sell it in here.

Wheat:

Exports: None Visible.

Comments: Asian report: U.S. GMO still a concern; U.S. prices high vs. Black Sea; Indonesia to boost Australian imports by 15%. Ukraine harvest 50% over year ago, yields up strongly, crop seen at 53-54mln.m/t’s vs. 436.2mln. yr.; open interest rose 20,100? I have turned friendly wheat recently though it seems counter-intuitive considering global fundamentals but that’s OK for now, and have to add yesterday’s action: open interest up 20,000 contracts (mostly Sept/Dec.) and prices close ONLY A FEW CENTS HIGHER? Not sharply lower? There’s at least whipsaw likely coming and will stay with the long calls (or call spreads as mentioned).

Not sure what’s up but deserves seller’s caution.

Kleist Comments

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

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