Kleist Comments

MORNING GRAINS 7/22/13

Corn:
Exports: Japan buys 120,000t Ukraine & 180,000t Brazil; Vietnam buys 20,000t So.Amer.

(Total So.Korea Black Sea buys 600,000t in last 7 weeks).

Comments: Why are we rationing corn? It I not likely a small U.S. crop coming and we are losing an export base that could be considerable. Took a 60 mi. trip around northern Ill. east to eastern1/3rd yesterday and this: the fields were like a canvass: lush, well defined, uniform and my hats off to the producer. I do not think this is the norm however. Open interest rose 11,300 led by U/Z amid moderate volume; C-O-T report: leaned neutral. So far in the higher end of my downside objective of $5.00-4.75 December and as such neutral just now. China June imports 7,825t dn. 98.5% on yr. (that will change gentlemen).

SOYBEANS:

Exports: None Visible.

Comments: Beans looked painted as well in my travels BUT all looked too short and I heard reports that (short) extends to north central Ill. which needs rains to correct it; China futures up with CBOT; open interest fell 2,135 led by Q/X dn. 4800 amid light volume; C-O-T report: leaned bearish; not sure when but looking for a switch in the bean/corn spreads in the next couple weeks and with shortcovering a major support still, looking for a sell area (futures) in the November contract. China’s ‘looser’ lending policy psychologically friendly.

Wheat:
Exports: None Visible.

Comments: China June imports 219,330t up 12.1%; Australia rains benefit west-north/south; Open interest fell 1,610 led by Sept. off 2574 amid light volume; C-O-T report: neutral to me. Wheat tries to hold (on export demand) but continuous new swing lows in corn preventing rallies.

Kleist Comments

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

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