Daily Ag Direction 4/15/24
Happy Tax Day!
Drought is becoming a big concern for winter wheat growing areas across the country. The 72 hour precipitation forecasts show a majority of Kansas and Western Oklahoma missing the 0.5 inch and greater rainfall amounts. Fortunately the 6-10 day temperature outlook is for below normal temps and a normal or slightly above average chance for additional moisture. Look for crop conditions reports to take a hit this week.
The wheat market closed higher on Friday which is expected to be managed money moving around. Some speculate that commodities are being viewed as a safer investment with currently world events. Markets have turned red on Monday possibly due to the short term chance of rain but there is still good news for bulls. The Indian wheat crop is forecasted lower and may move into becoming an importer which would be a great opportunity for the export market as a whole.
The corn market is suffering from funds continuing to increase their net short position as bulls begin to exit their positions. Thursday’s export report is seen as disappointing but their was a flash sale to Mexico this morning. The market is shrugging off this news currently trading near daily lows.
Soybeans are starting the week negatively as the market tries to understand the disparity between the USDA and CONAB Brazilian estimates. These two numbers are 8-10 mmt apart. Chinese demand looks to be 105 mmt which is inline with last year.
May KC Wheat -8 @ $5.82
July KC Wheat -9.5 @ $6.23
May Corn -4.5 @ $4.31
Dec Corn -4 @ $4.68
May Soy -12.5 @ $11.62
Nov Soy -9.5@ $11.67
Aug Feeders +$3.7 @ $249.25
June Live +$2.90 @ $174.38
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!