Kleist Comments

MORNING GRAINS 9/27/13
MORNING GRAINS 9/27/13

Corn:

Exports: So.Korea buys 120,000t opt/org.

Comments: Report suggests So.Korean feedmillers to kick off March delivery corn bookings; Brazil reports northern areas OK but southern areas wet and cool and slowing (early) plantings; China’s import quota pegged at 7.2mln.m/t’s; open interest rose 4,000 amid light volume; yields still seen expanding but ‘old news’?; price might be awaiting 50% harvest complete and trade sideways until then; one wild card seems to be users, mostly importers, consider these prices “cheap” and can be spooked at a moments notice. All-in-all I am a tame bear for now.

SOYBEANS:

Exports: None Visible. Taiwan buys 55,000t Brazil beans for March.

Comments: Early run up rally seen in reaction to an article for Monday’s Quarterely grain stocks number being a ‘bullish surprise'; I am satisified with the demand base built up in new crop and the fact the market has dialed in a large crop already. Too early to call $13.00 a likely low, too early to lift hedges, but might be too late to press it under that for now….even if the government shuts down; open interet rose 5,000 amid light volume. Brazil: Hot & Dry north stops any early plantings. Note: Taiwan buys new crop beans at a significant savings apparently due to being new crop but overall I think its bullish psychology.

Wheat:

Exports: Sold Unknown 121,400t.

Comments: Overnight sale helps explain yesterday’s rally in part but adds to my interest in wheat keeping independent for awhile longer; in fact I have no problem with $7.00 Dec. CME just in the near term; as such buying near the money calls night be the play conservatively. And there’s the shortcovering: open interest fell 3,300 led by dec. off 5,144 amid moderate volume.

Kleist Comments

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

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