Kleist Comments

MORNING GRAINS 7/1/14
MORNING GRAINS 7/1/14

Corn:
Exports: None Visible.
Comments: The market still shaking out the USDA report overnight though the losses much more modest. Deliveries 3; next week the USDA S/D tables; crop 75% gd./excel. up 1%; early close Thursday, reopen Monday at 8:30am.; open interest up 1300 even a July falls 8600 amid very heavy volume (seemingly not much of a long-side shakeout). New swing lows overnight, not much else to chew on. Weather forecasts look decent.

SOYBEANS:
Exports: None Visible.
Comments: July beans will hold their premium to the last drop of their “old crop too tight” blood it seems. Acres in perspective: up 3.3mln. vs. March intentions and up 8.3mln. on the year…..potentially a very bearish situation if weather holds and demand softens; Hey, maybe Argentina will help: farmer groups says will hold back beans 2nd 1/2 of year if cannot stop a new sovereign default……sabre rattling me thinks; open interest rose 6500 even as July/Aug. falls 11,000 total, volume very strong; need to clear out the haze of the report and see where it gets its footing. Weather forecasts look OK. Head & shoulders in November confirmed?

Wheat:
Exports: None Visible.
Comments: Seeing as wheat was the whipping boy for months, what’s another negative report? Hence, it might be the first to ‘stabilize’ the losses from yesterday first and if so perhaps help the corn. Next major downside near: Jan. 30th low of $5.85-1/2. Winter wheat harvest 43% vs. 48% avg.

Kleist Comments

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

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