Kleist Comments

MORNING GRAINS 8/28/13

Corn:

Exports: Japan in 320,000t feed wheat/barley; So. Korea buys 60,000t opt/org.; Taiwan in 60,000t for Nov. opt/org.

Comments: Much cooler, overcast here in NE Ill. today; even though warming back up there are variable degrees of humidity, intensity and bikini’s; Sanderson Farms says will depend on southern corn mainly Tx. and La., due to its large crops and “high energy”; Asian report says U.S. corn prices up $10/ton this week in East Asian Ports on good demand, more seen; open interest fell 23,300 led by Sept. (19,600) and Dec. (5,000) amid moderate/good volume. Some ingredients to suggest a top is in but not a confirmation yet. December recovers 50%; without more bean (read soymeal) losses to ‘crop up’, might be tough to argue prices maintaining over $5.00/bu.

SOYBEANS:

Exports: Sold China 120,000t soybeans.

Comments: I believe the market now consolidating largely due to reading of rains, humidity an actual temps. not hell-high; longer term forecasts ‘wetter’; who will be the first to say “frost scare” on a potential cooling-off next week?; open interest rose 5,600 even as Sept./Nov. drops 5100 combined, volume strong. Like the corn we could put in a possible top in place (‘double high yesterday’? but the dance not likely over.

Wheat:

Exports: Sold Unknown 119,000t 2013 through 2015; Egypt in 55-60,000t opt/org.

Comments: Considering the announcement came out in the same paragraph, I’ll assume Unknown is China. Why not? Of course Chgo. futures drop on the news anyway, but wheat sales have been decent overall. Conab (the barbarian) says Brazil’s main growing region lost 700,000t to July frost (no wonder they have been buying ours last few weeks); Black Sea supplies remain good; open interest fell 5,900 led by Sept.off 9,430 amid moderate/goo volume.

Kleist Comments

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

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