Daily Ag Direction 10/4/24
This week's export sales numbers were exceptionally strong by recent standards. Corn doubled up on the trade guess, aided by ongoing business with Mexico but also PNW values that undercut Brazil for the Japanese market and Gulf values that are competitive for the EU. Beans also posted good numbers with diverse destinations including China, EU, and Africa. Sticking with the theme, wheat sales saw nice week on week gains and stayed ahead of USDA forecast pace. Bullish trade news aside, the actual flow of money going into Friday's session is more focused on consolidating technically overbought wheat and corn markets, with beans trying to hold on to neutrality despite short term trends like 20 and 50 day moving averages starting to level off. Longer terms moving averages and the inability to break through them are a key feature on today's break in the corn and wheat complexes. From a fundamental side, beneficial rain in the forecast for the Black Sea region and ongoing positive yield reports for corn are adding pressure. Bulls will need new headline risk to keep this rally fueled.
Dec KC wheat is -5 at 6.06
Dec Chi wheat is -10.5 at 5.93
Dec corn is -3 at 4.25
Nov beans are +3.5 at 10.49
October Feeders are +.15 at 249.125
If you have any questions, please reach out to your CEA Risk Management Advisor and have a great day!