Daily Ag Direction 8/20/24
Good Morning!
Wheat sees some export news as Tunisia tenders for 75k mt of milling wheat and Jordan received 5 offers on their 120k mt tender. Sovecon raised Russian wheat production keeping production at 86mmt. Crop weather should improve for Canada and Australia with Argentina still having concerns. Export inspections were a bit of a disappointment yesterday on the low end of the range. Corn continues to trade lower down to 4-year lows. Of note, open interest fell 18k contracts with funds exiting some positions. Many eyes are on the ProFarmer tour and await their findings in the I-states. Spreads continue to widen as the realization of corn supplies hitting the market soon are weighing on deferred contracts. Soybeans saw some life yesterday on short covering. China bought some more beans and US beans are competitive with Brazil. The soy contract continues to be oversold and many feel it is a corrective measure so we will continue to watch.
Sept ’24 KC Wheat +4.4 @ $5.46
July ’25 KC Wheat +3.2 @ $5.84
Sept Corn -1.4 @ $3.77
Dec Corn -1.0 @ $3.99
Sept Beans +1.6 @ $9.58
Nov Beans +1.2 @ $9.77
Sept Feeders -0.800 @ $238.475
Oct. Live -1.575 @ $177.450
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!