Daily Ag Direction 8/6/24
Good Morning!
Wheat seems to have established a springboard off recent contract lows. While trade is narrowly range-bound we have pushed higher testing the $5.65 level and bears seem unable to drive lower with consistency. It is important to temper optimism but understand that any sign of strength is significant considering recent moves lower. Corn crop condition at 67% g/e vs 68% last week. Expectations for the August WASDE yield number are all over the board from staying at 181 to some estimates as high as 185 bu./acre. General feel for a 1-1.5 million acre reduction as well. Will yield outweigh reductions in acres? Exports may be a bright spot for US corn as the world situation is a little less favorable compared to US production and current price levels let corn leak out. Soybeans had good news from a crop condition standpoint with trend line yield support persisting. We can’t seem to stop the bleeding in Soy markets but the meal complex received some support form the Argentine oilseed workers strike.
Sept ’24 KC Wheat +1.6 @ $5.62
July ’25 KC Wheat +1.2 @ $6.01
Sept Corn +1.6 @ $3.93
Dec Corn +1.4 @ $4.09
Aug Beans -6.0 @ $10.38
Nov Beans -11.0 @ $10.29
Sept Feeders +0.500 @ $241.750
Oct. Live -0.375 @ $178.625
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
