Daily Ag Direction 5/10/24
Happy Report Day! May WASDE numbers will be released at 11am today, as will Brazil's Conab numbers. The trade will be watching if there is any convergence with the present gap in production estimates for Brazilian beans. With only slight adjustments expected on the Conab side, it is more a question of will USDA make adjustments downward to close the gap.
With corn, eyes will be on USDA's ethanol/feed/export demand and if it is sufficient to absorb the projected trendline yield of 181 bpa on 90 million acres. Absent any market moving numbers in the report, the focus will return to weather and planting progress in the US. Corn came out of the overnight session firmer after cooling off over the last two days.
The wheat market caught another updraft in the overnight session on news of freeze damage in Russia. Trade this morning is off the overnight highs but still deep in the green going in to the report. Domestic carryout anticipated to be unchanged with global numbers possibly taking a hit from lower Black Sea projections. Moisture chances improving for some areas where dyness is a concern, including parts of US Southern plains, Australia, and Southern Russia. Plenty of variables in play for pre-harvest wheat trading between USDA numbers, weather, and ongoing fund short covering. Wheat is trying to post the third straight week of higher closes.
July KC wheat is up 10.5 at 6.62
July Chi wheat is up 12 at 6.94
July corn is up 3.5 at 4.60
Dec corn is up 3.25 at 4.83
July beans are up 5 at 12.13
Nov beans are up 1 at 12.01
Feeder cattle markets open modestly firmer this morning with May up .35 at 239.00 and Aug up .575 at 252.65
If you have any questions, don't hestitate to contact your Risk Management Advisor and have a great day!