Kleist Comments

MORNING GRAINS 7/5/13
MORNING GRAINS 7/5/13

MORNING GRAINS 7/5/13

Corn:

Exports: None Visible.

Comments: Weekly export sale: old crop 233,100t off 315 but led by Japan at 146,600t, new crop 81,400t?; U.N. said June world food prices fell 1% on month as lower sugar and dairy offsets higher meats; open interest rose 14,000 amid light/moderate volume. You know, if not for the situation in the July contract the December to $4.50 or less might have been easier to swallow. But unless November beans tank early, $5.00-4.75 could very well hold the Dec.

SOYBEANS:

Exports: None Visible.

Comments: Weekly export sales 120,600t, by the way shipments fell 48%, (new crop 249,100t); Meal 116,30t; Oil 1,600t; India reports their June oilmeal exports rose 12% after poor performance in April/May (blames Iran demand); China futures higher 4th day in a row (mostly CBOT influenced but also as China government announces corn purchases will rise by 6% and rallied their corn futures, they (brokers) expect same for bean purchases (both to aid farmers); China soybean weather generally OK; open interest rose 3,200 amid light volume; are November beans priced better (considering needing a “weather premium” of some sorts) at $12.60-12.50 or $12.20-12.00? I lean to the later.

Wheat:

Exports: Japan buys 750t U.S.SRW and White club, also bought 12,206 Aust. and 28,000t Canada. Jordan buys 100,000t opt/org.

Comments: Big news?: South Korea lifts ban on U.S. wheat imports after recent inspections showed no trace of those dreaded GMO’s; Ukraine government sees record high grain exports of 26mln.m/t’s vs. 23mln. yr. on production of 53-54mln. vs. 346.2mln.yr.; Russia harvest still way ahead of normal, yields still very good; U.S. weather mostly favorable north; open interest little changed in total, inside was curious as December dropped 7,000 and picked up by Sept./March, volume still strong.

Kleist Comments

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

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