Daily Ag Direction 1/13/25
Good Morning!
Markets green this morning as we continue to trade through the January WASDE information. Wheat is following corn and beans due to the bullish yields in the report. US Wheat carryout increased 3 mb due to higher imports and increases in seed use. Corn prices increased to 7-month highs. Funds added nearly 60k contracts as their long approaches 300k contracts. Final 2024 corn yields were lowered 3.8 bu./acre to 179.3 bu./acre. US bean yield and acreage adjustments dropped US production by 95 mil/bu. Ending stocks dropped to 380 mil/bu. reducing stocks-to-use by 2.1%. South American production was not cut and Brazil is expected to increase with no reduction to Argentina yield expectations. Cattle futures post new highs on firmer spot cutout values and strong cash cattle markets. Spot choice was up $8 week to week. Last week’s slaughter numbers were underwhelming at 589k head short of estimates by 10-15k head. Cash fed cattle traded $3-$5 higher in the north and $4-$5 higher in the south.
Mar KC Wheat +5.6 @ $5.58
July 25 KC Wheat +6.0 @ $5.75
Mar Corn +4.4 @ $4.75
Dec 25 Corn +4.0 @ $4.55
Jan Beans +18.0 @ $10.32
Nov 25 Beans +11.4 @ $10.43
Mar Feeders -0.650 @ $268.750
Feb Live -0.575 @ $198.200
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
-Trent
