Daily Ag Direction 7/22/24
Good Morning!
Geopolitical unrest and big corn exports dominate the wires this morning. Weather in Russian/Ukraine is still offering some hope and wheat bulls are trying their best to turn this market around.
The market will work through what it means that Biden dropped out of the race. Some interesting things to consider for Ag is what Trump trade policies would mean for other countries. China lowered interest rates to try to stimulate their economy and remember how difficult tariffs made trade during the last Trump presidency. It will be interesting to see if they come to the table early anticipating a return to the same. Some rain seen across Ukrainian corn growing regions but the general consensus is that the crop is getting smaller there. Some rain concerns for the U.S. crop so we are still waiting to determine if an August weather rally is in the works. Mexico remains a big importer of U.S. corn especially on the recent price break. Fears of losing a large portion of this corn crop are waning but beans are far from over. It is likely computers trading the market this morning but beans were up big and weather concerns are likely the culprit. Expect extremely choppy trade over the next month or so as a clear direction is unlikely. There are still very large short positions and a reversal in that trend could equate to big market moves, however, that has to happen and we cannot predict when it may.
Sept ’24 KC Wheat +2.5 @ $5.73
July ’25 KC Wheat +4.0 @ $6.07
Sept Corn +6.0 @ $3.97
Dec Corn +7.0 @ $4.12
Aug Beans +18 @ $11.15
Nov Beans +30 @ $10.66
Sept Feeders +1.900 @ $257.675
Oct. Live +1.725 @ $185.200
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
