Kleist Comments

MORNING GRAINS 8/30/13

Corn:

Exports: None Visible.

Comments: Deliveries: 0, no surprise but as next week rolls around or as southern harvest accumulates enough to dump say or as farmers start to think the squeeze over…..well. Open interest fell 7,000 led by Sept. off 17,600 amid moderate/light volume; weather now should be rather a ‘harvest delay’ mostly than a ‘add/lose yld.’ moment next week. Not prepared to short futures just yet but will maintain other (hedged short) positions. Finally, there’s now a ‘flash dance’ in parts of the Midwest…I mean a ‘flash drought’ but as one forecaster said for Illinois it’s a small “d”.

SOYBEANS:

Exports: Sold the Big Dog 110,000t new crop!

Comments: Sorry about that, just trying to add some excitement to a boring news day. Weather? Inconclusive still and perhaps inconclusive enough to put support under the market: rains could be heavy into northern Ill. this afternoon but then again we might miss them as they swing farther north, next rains seen Sunday but again not organized or all-models agreed with; Monday night trade then likely a wind storm; deliveries: beans 0; meal 0; and soyoil 651. Unlike the corn, our long put-option positions looking more favorable (due to volatility) but will it to Tuesday on futures positions….just being typically conservative in a weather market. Open interest fell 2391 amid light volume. Finally, September is the ‘end of quarter’ for the funds and many times helps determines their year-end bonuses. And who’s long out their …. More later.

Wheat:

Exports: Japan buys 43,5823 opt/org.; Pakistan buys 92,102t opt/org.

Comments: Pakistan’s buy a 1st in 3 years as apparently their production not up to snuff (anyone hear of ‘medical snuff’ anymore?); deliveries: no Chicago, K.C. 19 loads; open interest fell 4,285 led by Sept. amid moderate/light volume.

Kleist Comments

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

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