Daily Ag Direction 9/5/2024
Good Morning!
Wheat markets coming back down overnight after the rally seen the past few days. The KC Dec contract closed higher 7 days in a row and is nearly +.70 cents off the recent lows. With the cash bids to the producer being over $5, the producer has been a seller. This rally looks to be more about technical buying, fund short covering on the dry weather potential in the Black Sea region but also in the US Southern plains for new crop wheat planting.
The corn market fell back overnight as well. StoneX released their September crop estimates yesterday with corn yields increasing by 0.6bu/acre from last month to 182.9bu/acre, just 0.2bu below current USDA numbers. Production was down slightly to 15.127bu. Other private estimates out yesterday were in line with the market average.
Dec’24 KC Wheat -1.75 @ $5.9125
July ’25 KC Wheat -2 @ $6.14
Dec Corn -2.5 @ $4.1025
Nov Beans -4.75 @ $10.1675
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!