Kleist Comments

MORNING GRAINS 8/22/13
MORNING GRAINS 8/22/13

Corn:

Exports: None Visible.

Comments: Gentle rains, especially parts of Iowa lightly pressuring beans and hence the corn with it. Weekly export sales old crop 58,200t (Mexico 35,800t)/new crop sales 434,400t led by Mexico at 166,300t; Australia grain conference speaker (U.S. Grains Council honcho) says China’s 2013-2014 imports to rise 3-fold to 10mln.m/t’s on high domestic prices (China domestic production said at a $145/t premium to the U.S.) and increased meat demand and would make it the 2nd largest world importer; open interest fell 6400 led by Sept. off 10,100t amid moderate volume. Our target area remains the highs for now and will let it soak a bit and concerned any significant break in beans would spill over hard (i.e. corn not totally independent…it’s still going to be a big crop).

SOYBEANS:

Exports: None Visible.

Comments: Weekly export sales old crop 20,900t, new crop sales 926,000t led by China at 681,800t; not much in the products: meal sales 75,500t (new crop 101,200t); soyoil 8,400t (1300); Supportive news out of China: PMI data suggesting a recovering economy there; rains in parts of Iowa, heavy rains southwest Wisconsin and decent rains forecast (forecast mind you) for western Ill. as far north as I am (where it’s been dryer). Like the corn, November beans hit and holding upside objectives basically and the market trying to see if the re-built premiums enough. Something has to give up here as per open interest battle ground as mentioned starting Monday open interest. By the way, yesterday’s open interest rose 15,100 amid moderate volume and prices did not close all that bullishly (near 30,000 increase between Mon. and yesterday if not listening). I have arguments either way but tilt negative as per hedges.

Wheat:

Exports: Sold Japan 153,900t (U.S. 129,055t of it).

Comments: Weekly export sales at 494,000t holding together courtesy in part of Brazil taking 182,200t of it, Unknown cancels 69,600t; open interest little changed in total amid strong volume; to me $5.00 Sept. corn should equal $6.50 Chgo. Sept. but cannot play it.

Kleist Comments

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

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