Kleist Comments

MORNING GRAINS 8/14/13
MORNING GRAINS 8/14/13

Corn:

Exports: Taiwan in 29,000t U.S.; So.Korea buys 68,000t U.S., cancels another tender.

Comments: Report out of Asia suggests those countries re-gearing up for the new lower prices of corn because of fear from the decline in production as per the last USDA report (and beans for different levels, see below) BUT after the CBOT broke to new swing lows yesterday they are being more savvy perhaps. While I was wrong the ‘key reversal’ (which is good perhaps since I like the idea there are some things we can depend on old school), December corn at least paying its last respects to the pre-report low and not blasting under it. Yet? Open interest rose only 1,370 amid good volume.

SOYBEANS: ***********AUGUST CONTRACTS EXPIRE***************

Exports: Taiwan in 5,000t U.S. beans. LATE: SOLD CHINA 100,000T NEW CROP.

Comments: Asia reports a desire to book more beans due to the USDA’s drop in production, U.S.. slow maturity and possible frost damage later on. Not a candlestick fan but I understand there’s a bullish “white candle” formation on hand for MPO futures. Let’s see if the report also perks up China for more stocks-building. Correction bottom to top of rally 78 cents, 50% correction $12.01; “old” support $12.20-12.00; likely bull defense -$11.80 near term. Open interest rose 6,000 led by F/H/K amid moderate volume (new longs on big rally a bit surprising).

Wheat:

Exports: So.Korea buys 47,800t U.S.

Comments: Ukraine government sees grain exports revised up 30% over a year ago top +30mln.m/t’s (18mln. corn, 9.5mln. wheat); Russia revises harvest down 5% to 90mln.m/t’s on drought; Europe revises its wheat production higher; U.S. northern plains weather ‘largely favorable’. Open interest fell 4,110 led by Sept. off 14,000 amid strong volume. Still need to trade wheat in the corn pit.

Kleist Comments

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

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