Daily Ag Direction 8/5/2024
Good Monday Morning!
Equity markets in Asia, Europe and the U.S. were all lower overnight. Macro meltdown triggered by Japan raising rates with Japan's Nikkei having its worst day since 1987, falling 12.4%. Recession fears on Wall Street adds to the pressure downward on the grain markets.
Wheat saw selling in the overnight and into the morning break. Russian export tax continues to drift lower even with FOB values trying to firm up. There is a potential rail strike in Canada that is worth keeping our eyes on.
Corn continues to move lower with the recession concerns. Cooler weather and moisture chances across Nebraska, Iowa, Kansas and the Dakotas bring hope for top end yields in those areas. It will be interesting to see how much of the large crop is already priced into the market.
Soybean market continues to hold the most recent price consolidation. Farmers will most likely hold on until bills force them to sell.
Sep KC wheat is -12.5 @ $5.4725
July 25 KC wheat is -8.25 @ $5.895
Sep corn is -5.5 @ $3.81
Dec corn is -5.25 @ $3.98
Nov beans are -8.5 @ $10.1875
If you have any questions please reach out to your CEA Risk Management Advisor and have a great day!
