Kleist Comments

MORNING GRAINS 7/11/13
MORNING GRAINS 7/11/13

Corn:

Exports: None Visible.

Comments: Weekly export sales old crop rose 68% to 392,000t led by Japan at 178,000t; new crop 657,900t led by Mexico, Unknown and China; some weather forecasts adding in more rains; open interest fell 11,000 led by N/U/Z amid moderate volume.

SOYBEANS:

Exports: None Visible.

Comments: Weekly export sales a minus (-) 70,900t on cancellations from Mexico and Unknown; new crop 410,800t led by China/Unknown; meal sales weak and soyoil export sales a net reduction (-); China futures slightly higher on government forecast the crop will be dn. 3.9% To 12.3mln.m/t’s on flooding north, hot & dry south (I have seen no confirmation of this); open interest rose 5,540 amid moderate volume.

Wheat:

Exports: Japan buys 49,954t U.S./Can./Aust.

Comments: Weekly export sales soared to 1.47mln.m/t’s led by China to 1.02mln., in a related story their traders say imports could be at a 9-year high at 4-5mln. vs. 2.9mln. yr. on rain-related downgrades to 5-8mln. production to feed wheat (less corn needed then?) and lower world prices, crop sixe lowered by 3-4mln. on drought (can’t confirm) but government keeps its total production at 120.6mln.m/t’s; open interest rose 2,550 amid good volume.

I’ll await the report to see if I need to change upside targets for corn, wheat and beans (Nov. beans hit them, will see if need to be revised either way).

Kleist Comments

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

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