Benson Quinn Commodities Inc. Minneapolis, MN Wheat November 21, 2014 Settlements: MWZ4 MWH5 MWK5 Close 5.83 ¼ 5.92 6.00 ¼ Change -1 ¼ +½ +¼ High 5.89 ½ 5.97 ¾ 6.05 ¼ Low 5.80 5.86 ¾ 5.98 ¼ Volume/Open Interest (# of Contracts): Volume Open Interest MW 10,523 67,069 KW 35,243 149,652 W 120,131 405,181 KWZ4 KWH5 KWK5 6.04 6.07 6.09 ½ +1 ¾ +¾ +¾ 6.08 ¼ 6.12 6.14 ½ 5.98 ¼ 6.01 ½ 6.04 ¾ Technicals: WZ4 WH5 5.47 ¼ 5.53 ½ -+1 5.53 ¾ 5.60 5.40 ¾ 5.47 ½ Review: US wheat futures traded lower overnight in a modest correction of yesterday’s move before piggybacking on a sharp move higher in the row crop market early in the day session. Trade above yesterday’s higher and slightly firmer technical structure triggered institutional buying early in the session. Funds typically get more involved as the 9:30 timeframe approaches. Today, the markets were already trading higher and we really didn’t see a push higher to add length. That being said, it took a while for the offer to satisfy the bid at higher levels in all three commodities. Lacking fresh inputs, wheat would slowly slide back to unchanged. Despite fund involvement early, flat price volume was on the light side. Funds were buyers early and may have provided an offer late. The trade estimates that funds were net buyers of 1,000 Chicago wheat contracts. Technicals firmed enough early in the session to trigger some buying, but didn’t finish the week very well. Producer selling was very light. Once setting back from the highs, wheat traded a relatively narrow range with corn and soybeans trying to offer some direction. I don’t believe the 550 strike level had much influence on the Chicago market, but it did pivot around that area until selling increased late in the session. Central banks continue to make asset ownership a priority for institutional investors as they race to devalue their currency for the purpose of stimulating economic growth. The US dollar responded with a sharply higher move, eventually putting in new highs for the move. In terms of US futures, more interest in asset ownership could offer support. However, the recent trajectory of the US dollar is another factor that limits the attractiveness of US supplies of wheat and corn. Going forward, if futures need to respond with higher price action, cash values will most likely have to weaken overtime to find a home, domestic or abroad, for these supplies. The closes in wheat and corn indicate the early strength was way overblown. Funds may be enticed to cover shorts in the wheat markets, but I don’t believe they are calculating reasons to go long the Chicago market. Momentum studies hint at higher prices, but not decidedly so. In the absence of fund buying, I’d look for these markets to drift sideways. However, there may be a legitimate reason for funds and others to buy the EU milling contract, if they do US futures would likely find support. The COT has funds reducing their net short position in Chicago to even ish, which is a negative feature. Funds added length in KC and Mpls, but have very manageable positions. Brian Henry MWZ4 KWZ4 WZ4 Support 5.25 5.55 5.10 Resist 6.02 6.19 ¼ 5.91 20-Day MA 5.73 ¼ 5.93 5.36 USDA Weekly Export Data: Date Inspections (MT) 11/13 Wheat Sales (MT) 11/13 HRS (MT) 11/13 HRW (MT) 11/13 SRW (MT) 11/13 Domestic Rail Market: HRS: Dec Protein 12.00 13.00 14.00 14.50 15.00 Basis +110 +100b/+160 +240 +245/+325 +475/+500 HRS PNW Month Basis Nov +380/z Dec +380/z 50-Day MA 5.61 ½ 5.85 5.12 ½ Trade Est. 250-375 Actual 139,351 361,700 106,900 65,400 28,100 275-500 N/A N/A N/A HRW: Dec Change -nc Protein Ords. 11.00 12.00 13.00 14.00 --/-20 -+50/-- Change --- HRS Daily Receipts Cars 196 Net Change +289 +918 -3,380 Basis +110/+120 +110/+120 +141/+151 +135/+145 +155/+165 HRW Gulf Month Basis Nov +140/Z Dec +145/Z Trains Change ------ Change +3 +5 2 Deliverable Stocks (Thou Bus): Nov 14th Week Ago Del Total Del Total Chicago 8,816 9,116 8,830 9,130 Toledo 19,269 19,589 19,266 19,586 Year Ago Del Total 10,834 10,834 26,263 26,465 Hutch KC Salina Wichita 17,130 7,605 12,293 19,862 17,130 7,607 13,126 20,214 17,123 7,650 12,272 19,918 17,123 7,653 13,105 20,270 23,839 11,733 17,233 24,744 23,839 11,902 17,514 25,567 Mpls. Duluth 5,421 17,301 5,421 18,114 5,384 17,509 5,384 18,322 4,375 17,389 4,375 18,626 Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Information contained herein is believed reliable. Benson Quinn Commodities, Inc. does not guarantee that such information is accurate or complete. Opinions expressed reflect judgment at this date and are subject to change without notice. BQCI is a wholly owned subsidiary of Archer Daniels Midland Company An Introducing Broker for ADMIS 701 South 4th Avenue, Suite 800, Minneapolis, MN 55415, 1-800-438-7070