Daily Ag Direction 8/9/24
"Support but not strength" seems to be the tone for the grain markets early in today's session. USDA reported a private sale of 132k mt of beans to China for the 24/25 marketing year, which marks the largest NC purchase this year. The new marketing year total is only .56 mmt, vs 3.75 mmt to China at this time last year. Beans pushed through $10 on the nearby Sep contract overnight but have since fallen off, as exports are not providing enough momentum to overcoming the looming new crop and burdensome stocks to use ratios. Wheat came out of the overnight with some gusto, aided by a nearly 10% reduction in French soft wheat estimates by FranceAgriMer and corresponding price action on the Paris exchange. Repititive bouncing off the short term moving averages and talk of increasing dryness in Australia is lending additional support to the wheat complex, but like a broken record the lack of export opportunity continues to moderate price action. Corn looks like it is taking a position squaring back seat in anticipation of next Monday's WASDE report, trading a few cents higher until wheat fell off its early highs.
Sep KC wheat is +10 at 5.615
Sep Chi wheat is +12 at 5.49
Sep corn is -1 at 3.78
Dec corn is -1 at 3.96
Nov beans are flat at 10.08
August feeders are +2.30 at 244.675
August live Cattle +.425 at 182.475
If you have any questions, please reach out to your CEA Risk Management Advisor and have a great day!
