Kleist Comments

MORNING GRAINS 8/29/14

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MORNING GRAINS 8/29/14

Corn:
Exports: None Visible.
Comments: IGC raises global corn production by 4mln.m/t’s to 973mln.; Monsanto official says all this corn will find a home as importers switch back to the best feed vs. feed wheat; them and DuPont also said they ‘intend to raise seed prices’, just a coincidence, eh?; open interest fell 15,600 led b y Sept. off 23,600 amid moderate volume; look out for a thinner trade as while normal closing times, many will be scattering to the 4 winds; no opinion change.

SOYBEANS:
Exports: Sold Unknown 120,000t new crop.
Comments: Guess we can sum it up for any background support: SDS & excessive rain for new crop and tight old crop still and amid no deliveries (meal 0/oil 264). That’s it. Open interest rose 3,900 (mostly F/H) amid very light volume. No opinion change.

Wheat:
Exports: None Visible.
Comments: While Russian military into the Ukraine and quality issues in Europe said supportive, the IGC raised world production to 713mln.m/t’s up 11 mln. on increases from Europe, China and Russia. Deliveries here 58, KC 800 issued by ADM an stopped by the street; open interest fell 11,000 led by Sept. off 11,800 amid good volume. “Close over’s” have added risk obviously but I still am using a close over $5.71-3/4 to turn near term neutral.

Kleist Comments

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

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