Daily Ag Direction 9/23/24
Good Morning!
Much needed moisture will allow the southern US wheat crop to start progressing. Dry weather was a slightly bullish item so the rainfall could release some of that bullish market talk from the equation. However, KC wheat is rolling this morning up 15 cents at the open. Lack of rainfall in Australia is causing some to estimate a 7% decrease in yields there. There is likely some sympathetic buying in wheat following corn and soybean action. Rainfall in the corn belt is more important for river traffic than the crop so slow harvest progress is a symptom of more optimal shipping conditions. Fund short covering has been slowing down in corn with funds liquidating 2,500 contracts last week. Bean futures seeing a benefit from increased exports to China and Asian markets seeing higher values from the oilseed complex. Traders will look to Chinese demand, US yield estimates and Dollar trade to find a direction for soybean markets.
Dec KC Wheat +17.5 @ $5.82
July 25 KC Wheat +17.5 @ $6.08
Dec Corn +9.0 @ $4.11
Dec 25 Corn +5.5 @ $4.49
Nov Beans +22.0 @ $10.34
Nov 25 Beans +14 @ $10.75
Oct Feeders +0.625 @ $244.55
Dec Live +.500 @ $183.700
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!