Daily Ag Direction 10/7/24
Good Morning!
Dry conditions persist for major wheat growing regions. However, volatility persists without any major reasons. Currently trading at the high of today at $6.05, wheat has traded as low as $5.92. The Saudi’s purchased 307k mt of milling wheat with the assumption that it is coming from Russia. Strength later in the trading session and a close above $6.00 will be a good sign for KC wheat. Corn continues to feel pressure from harvest even though it tries to gain ground following wheat. It is very dry in South America which helps bolster corn and soybean prices at home. The COT report showed short covering of some 68k contracts which is helping prop up prices as well. It is still believed that funds are about 70k short at the moment. Several bullish items in beans last week include Chinese export purchases, dryness in Brazil and fund short covering all allowed prices to experience some brief increases. Most of those gains were lost towards the end of the week. Rain chances will weigh on prices in the short term but soybeans may find outside help from other commodities throughout the week.
Dec KC Wheat +7.0 @ $6.05
July 25 KC Wheat +6.0 @ $6.38
Dec Corn +1.2 @ $4.26
Dec 25 Corn +1.5 @ $4.55
Nov Beans -3.0 @ $10.35
Nov 25 Beans -0.5 @ $10.80
Nov Feeders -0.475 @ $248.800
Dec Live -0.075 @ $186.925
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
-Trent