Kleist Comments

MORNING GRAINS 9/03/13
MORNING GRAINS 9/03/13

Corn:

Exports: None Visible.

Comments: Deliveries: 7 (by Term-house). I am wary of buying corn in the bean pit and even under my soymeal/corn argument, corn is lagging severely; IGC says bean/corn ratio favors bean plantings (but as such) the China AG Min. says will increase quantities of corn imports; open interest fell 2,165 led by Sept. off 10,800 amid light volume; C-O-T report: leaned neutral; $5.08-1/4 now remains the likely bear defense.

SOYBEANS:

Exports: None Visible.

Comments: Less than expected rains and/or less than expected forecast? I usually understand weather markets but +50cents November? Big fogs, big humidifies followed by warmer temps. (in 90’s but not parching) and more rains end of week might be the reason November stopped just under its last week’s high of $14.09; will back off futures’ rec’s but will look to add near the money puts (futures risk extremely arbitrary as is typical); open interest says funds are committed new buyers with it up 9,100 amid moderate volume….and the C-O-T report was decidedly bearish (huge change of commercial shorts); curiously CPO futures lower on U.S. rains apparently; IGC says Brazil’s new crop plantings could be up 5% to new record; soyoil deliveries 344.

Wheat:

Exports: Japan buys 116,350t opt/org.; Egypt buys 355,000t Black Sea.

Comments: Report says Turkey will take over #1 spot in buying Russian wheat (Egypt more to Ukraine/Romania apparently); KC deliveries 15; open interest fell 1390 amid very light volume; C-O-T report: leaned a bit negative. $6.50 Sept. priced about right vs. corn but no independence seen yet.

Kleist Comments

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

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