Daily Ag Direction 8/28/2024
Good Morning!
Bloomberg put out a report this morning that quoted Chinese officials saying government officials brought in all the top grain importers in China and “urged” them to purchase less foreign grains and oilseeds as there is an adequate supply in the country and they want importers to support domestic producers. When dealing with China its always less about the talk and more about the action, but if this comes to fruition, it would be bearish for demand.
Wheat markets saw light volume and two sided trade last night following the mad rush of exits seen yesterday. Fundamentals still look bearish as markets continue to reflect large supplies with limited demand with wheat price action following corn and soybeans.
Corn markets trending down with US yield estimates high limiting upside moves. The September 12th USDA report is seen as key to establishing the low side of corn price outlook as the USDA will begin to rationalize demand.
Soybeans have seen a pre harvest rally with a 35c upward movement from August lows. Support has been tied to US temperatures and limited rainfall. Longer range forecasts look cooler and feature rainfall with Delta areas remaining above normal temperatures.
Dec’24 KC Wheat +6.75 @ $5.535
July ’25 KC Wheat +7.5 @ $5.7625
Dec Corn +.5 @ $3.9325
Nov Beans -5 @$9.815
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!