Daily Ag Direction 12/11/24
Good Morning!
Historically, the December WASDE crop reports are pretty ho-hum. This year was not the typical year as USDA made some aggressive changes to key balance sheets. They moved the US 2025 beef production down by 2.5% of production based on the thought that the border with Mexico will remain closed to feeder cattle moving north to US feedlots.
USDA also increased US corn exports by 150 million bushels, while increasing ethanol corn use by another 50 million bushels which took 200 million off the ending stocks. USDA also increased Brazil domestic corn use by nearly 80 million bushels with global stocks falling more than 300 million bushels. While the USDA lowered the US corn stocks by 200 million bushels, they left the marketing year average cash price unchanged at $4.10/bushel. USDA also made no changes to the US soybean balance sheet but dropped the marketing year average cash price by over 60 cents to $10.20/bushel. That drop in price is down $4 over the past two years.
March KC Wheat is +3 @ $5.6875
July ’25 KC Wheat is +3.25 @ $5.84
March Corn is +2 @ $4.505
Dec’25 Corn is +1.5 @ $4.43
Jan’25 Soybeans +1.25 @ $9.96
Nov’25 Soybeans +1.75 @ $10.115
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
Mike Hellman
580-532-5126
