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KLEIST CONSULTING
721 West Havens, Mitchell, South Dakota
800-234-2238

(March 14, 2002) CORN: BIDING ITS TIME.--Since our last letter the corn market has been moving sideways, with the May roughly $2.05-1/4 to $2.12. Contract lows for May at $2.05-1/4, and March expired at $2.03 on Thursday. There has been some export business around but most of the support coming from seasonal buy sympathies and the recent run-up in the bean pit. Nothing else has changed in what remains a demand bear market. The last USDA supply/demand report continues what we keep focusing on and that is exports, off another 50 million bushels. Bluntly, without better exports talk of higher prices is all hope. Hope that demand will get better; hope there will be planting delays, hope that record ethanol use will save the market, hope seasonal forces will negate poor export demand. How many months do one have to keep hearing about bullish this and bullish that only to see more new contract lows? It has been a point in fact that when there is even a pure technical rally, whatever even light export business we had gets lighter. With another 2-4 million more corn acres possible this spring, the market likely will be sensitive to having to carry more supplies over to the next crop. If you hear of a rally about anything other than hot export demand driven, it is likely a selling opportunity. Please refer daily advisories.

 

John W. Kleist

 

Farmers Trading Group

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