Kleist Comments

MORNING GRAINS 7/23/13
MORNING GRAINS 7/23/13

Corn:

Exports: Sold Mexico 11,000t old crop, 95,400t new crop.

Comments: Rains in Iowa overnight backgrounds the electronic weakness, also parts of Nebraska; additionally a cooler front with pollination deemed negative; crop ratings 63% gd./excel., silking 43% vs. 56% avg.; open interest rose 12,200 led by Sept./Dec. (as technical selling picks up), volume still light-side however; December holding important low at $4.90, close under then to our $4.75 range low.

SOYBEANS:

Exports: None Visible.

Comments: After yesterday’s action, overbought more a feature than the rains in Iowa, etc.; 64% gd./excel., blooming 46% vs. 59% avg.; China moves to support economic growth; China futures higher on their soymeal, up 1.5% (thanks to U.S. action); open interest rose 3,6554 even as August falls 2761 amid light-side volume. We have bought puts up here in the November but futures still a bit cautious on pressing short side futures just yet.

Wheat:

Exports: Japan in 107,371t U.S./Can./Aust.

Comments: Spring wheat 85% headed vs. 88%, 68% gd./excel. dn. 2%; winter wheat 75% harvested vs. 76% avg.; open interest rose 3,000 amid moderate volume. As corn goes, so to wheat this morning.Plus, Black Sea harvest supplies increasing quickly. Sept. at $6.50 and ‘old’ near term target.

Kleist Comments

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

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