Kleist Comments

MORNING GRAINS 7/24/14
MORNING GRAINS 7/24/14

Corn: ****AUG. OPTIONS EXPIRE FRIDAY…….
Exports: None Visible.
Comments: Weekly export sales fell 49% to 291,500t, at note (besides more China/Unk. ‘switches’), Unknown cancels 220,100t and China 50,000t straight out. New crop sales 1.43mln. not bad. One trade group came out with their ‘official’ yield estimate of 174.1bu./acre (no surprise to the market). Soybeans obviously a help on the rally here. Hope it goes further. Open interest yesterday rose 18,200….some bulls betting on a bottom? December $3.75-4.00 restarts hedging.

SOYBEANS:
Exports: None Visible.
Comments: Weekly export sales up sharply to 226,700t led by China at 153,000t of it; new crop 2.45mln.; meal sales rose 42% to 93,500t; soyoil sales fell 65% to 2,00t. We were right: talk of hot and dry August also behind rally. Do not put away your sell/hedge orders just yet. Will advise. Top to bottom a 50cent recovery in Nov. so far. Open interest beans up 1900 (Aug. off 4,000) but meal open interest was up 5500 and oil off 4000.At or just under $11.00 Nov. restarts adding hedges.

Wheat:
Exports: Egypt buys Black Sea.
Comments: Weekly export sales routine at 443,200t; rally here in tandem with the beans/corn but needs a healthy recovery once in awhile. Open interest up another 5,000, volume very light. Bottom or a bounce? Likely just a bounce like the corn. We’ll see.

Kleist Comments

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

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