Daily Ag Direction 1/07/25
As the market opens up today we’re seeing wheat continuing to move off the bottom of it’s range after setting new lows last week. Nigeria, an uncommon US destination, was a buyer of 60k mt of wheat out of the Gulf. COT report showed the funds as a small buyer of wheat (8k), but they are still net short (85k). These events seem to be supporting the floor on wheat.
Corn & beans are taking some profits today after a decent rally towards the top of the range. Funds added 58k contracts to their long making them 200k+ contracts net long. Weather will remain a key talking point over the next few months as some volatility has been introduced, but remain vigilant during these breaks as there seems to be plenty of sellers at the top end of the ranges. Weekly corn exports did not show any unusual buyers of US products.
Bean complex is under pressure after the small rally up with the big questions of the moment still being 1) what are the weather impacts to S. American crop development? & 2) what will the trade implications be from a new Trump administration? Will we see tariffs against China & how will they respond? COT report displayed that funds with a net short of 58k. Over half of that fund short position has been built since the last COT report on Dec 30th.
Markets as of 9:30 AM
March KC up 3 @ 5.56 / Resistance @ 5.75 / Support @ 5.45
- New crop KC July25 @ 5.72
March Corn down 2 @ 4.55 / Resistance @ 4.60 / Support @ 4.50
- New crop Dec25 @ 4.43
Beans down 4.5 @ 9.93 / Resistance @ 10.10 / Support @ 9.80
- New crop Nov25 @ 10.09
If you have any questions on this or are interested in seeing how the RMA program can provide value to you please reach out to your CEA Risk Management Advisor. Have a good day!
Kavan Killian RMA TX/OK Panhandle
806.753.7099
