Daily Ag Direction 10/14/24
Good Morning!
On the heels of a fresh WASDE report, markets are struggling to find strength this morning. There are a few things to be bullish about in wheat. Dryness still persists across the US HRW regions and Russia and Ukraine are experiencing similar hardships weather wise. Matiff wheat is showing strength and charts suggest an upward trending channel with strong support. Also, Russia announced a 41% increase in the wheat export duty on Friday to $19.51 / metric ton in an effort to slow down wheat exports. They have concerns about falling production in 2024/25. Funds have gone long grains and oilseeds for the first time since September of 2023. Some bearish information would include rains in the 7-day forecast for parts of the U.S. and market numbness to Russia-Ukraine war news and Chinese-Taiwan tensions. Some rains across Argentina are eroding dryness concerns there and should help crops stricken by recent droughts. Finally, USDA increased the corn yield estimate from 183.6 to 183.8 bu./ac. Soybean yields were lowered to 53.1 bu./ac.
Dec KC Wheat -10.00 @ $5.94
July 25 KC Wheat -9.6 @ $6.30
Dec Corn -4.6 @ $4.11
Dec 25 Corn -6.6 @ $4.43
Nov Beans -2.4 @ $10.03
Nov 25 Beans -2.6 @ $10.53
Nov Feeders +1.125 @ $250.925
Dec Live +0.350 @ $187.925
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
-Trent