Daily Ag Direction 7/30/24
Good Morning!
Grains down hard again this morning but wheat has traded off of the lows fairly substantially. We are testing support set back in December of 2020 and demand cannot support any type of bull run at the moment. Weekly export inspections are at 15.8 million bu. which falls within the 8-18 million bu. estimate. The wheat market is consistent if it is anything and a streak of higher trading days will certainly signal abnormal market behavior if it can manifest itself. Corn crop ratings increased 1% to 68% G/E and is up 13% over last year. The July WADSE utilized a 181 bu. trend yield and that seems to be holding for now. Export inspections totaled 41.7 million bu. whereas trade estimates were 27.6-41.7 million bu. Beans continue to get hammered as yield risk seems to be evaporating. It may be a surprise to those of us looking in our backyards, but the bean crop came in at 67% G/E vs 52% last year. Hot weather is expected to continue through the 6-10 day forecast and below normal precipitation is expected over the same time period. For our trade territory, it appears like we will continue to see a shrinking crop and falling prices.
Sept ’24 KC Wheat -4.2 @ $5.49
July ’25 KC Wheat -3.0 @ $5.86
Sept Corn -5.5 @ $3.91
Dec Corn -6.0 @ $4.06
Aug Beans -19.5 @ $10.35
Nov Beans -19.0 @ $10.21
Sept Feeders -0.200 @ $255.875
Oct. Live -0.050 @ $186.750
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!