Kleist Comments

MORNING GRAINS 8/4/14
MORNING GRAINS 8/4/14

Corn:
Exports: None Visible.
Comments: September corn posts a ‘double low’ overnight from Friday at $3.61-1/2, not sure if not soybean/meal rally inspired or a bit drier 6-10 forecast. Granted, some areas of corn could use a hit of water but overall not tie to scale back most yields. In other problems with exports, Brazil to subsidize about 7mln. or more corn that could be freed up for export; crop ratings seen dropping 1-2% this afternoon; we’ll see some private estimates show up for the August USDA report; open interest fell 4600 led by Sept. off 13,800 amid moderate volume; C-O-T report: leaned bullish; no opinion change. Some talk today, as we pondered last week, all that French/German poor wheat could end up competing for feed business (but we’ll see).

SOYBEANS:
Exports: Sold China 110,000t and Taiwan 102,000t, both new crop beans.
Comments: Well, that ‘old time, way back’ contract low of $10.54 hit and held overnight; talk of a bit drier 6-10 day said backgrounding it but, hey, beans were slammed Friday; now a mini-battle as open interest rose 12,800 on the decline amid moderate volume. Deliveries 0/meal 0/soyoil 803; C-O-T report: leaned friendly; crop ratings to fall this afternoon?…maybe. November beans basically still struggling to keep its consolidation alive. Not much else to say from last week.

Wheat:
Exports: None Visible.
Comments: Looks like shortcovering for whatever reason, maybe an early exodus out of the September from fund shorts: open interest fell 3400 led by Sept. off 5,600 amid strong volume. OK, we now test Sept. to see if its can at least hold over $5.43 and see if export demand holds up; I am just mindful a similar chart formation July 11 ended up just a correction; C-O-T report: leaned bullishly.

And finally, “them’s fightin’ words” as Russia looks to ban U.S. made Kentucky Gentleman bourbon as part of their retaliation for U.S. sanctions. Is nothing sacred?

Kleist Comments

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

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