Kleist Comments

MORNING GRAINS 8/6/14
MORNING GRAINS 8/6/14

Corn:
Exports: None Visible.
Comments: No deliveries here, just 1 ethanol; USDA lowers Mexico’s crop ‘slightly’ (also imports however); USDA report on Monday: statically reported yield was raised 10 out of the last 21 years; open interest little changed even as Sept. falls 11,000 amid pretty light volume. Charts certainly look like an eroding market, not un-typical for corn as if long nickel and dimes one to death; All we have for now is the double low at $3.57-1/2 Sept. to keep bull-hopes alive. Close over $3.66-1/2 the likely bear defense near near term.

SOYBEANS:
Exports: None Visible.
Comments: Not much fresh around. Weather current and forecast looks decent for the crop; more talk of Argentina’s ‘holding’ by their farmers as mentioned yesterday; USDA report data reads yields were changed just 5 times in last 2 years in an August report; open interest rose 3,600 amid very light volume; it’s a consolidation still but one that’s marked by lower highs and lower lows; as I see it near term, November beans over $10.79-3/4-10.81-1/4 now the likely bear defense.

Wheat:
Exports: None Visible.
Comments: Besides the quality problems cited in France & Germany, it now is apparent in Poland as well; in fact I understand the Paris Euronet changed its quality grades to prevent poor quality deliveries; Unconfirmed: talk out of Toledo on a boat being loaded—-inspected for vomitoxin on our SRW; open interest little changed in total, some decent Sept./Dec. rolling noted, amid moderate volume. Ok, we’ll test my ambivalence to the Euro-trash wheat issue: Likely bear defense my major m/a’s at $5.66-3/4-5.73-3/4 Sept.

Kleist Comments

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

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