Daily Ag Direction 4/23/24
Good Morning!
Continued buying in wheat but well off the highs. Nearby May KC wheat traded as high as $6.09 this morning before retreating and new crop made it to $6.145 before coming back down. More and more concerns about the U.S. crop emerging but a rain could reverse that thought process very quickly. KC Wheat blew through the 20, 50 and then the 100-day moving average. Continued strength today will be crucial to follow through buying. Look for a close today above $6.03 on the July to keep things going. The $6.15 level looks like a barrier in the near-term and $6.25 longer term.
Corn continues to be a follower for now. Corn export inspections came in at 64 mil/bu. and was the largest figure since May 2022. We are at 313 mil/bu. ahead of last year but a little behind USDA’s expectations. Locally we have heard good things about the Oklahoma/Kansas corn crop as most are finished planting and stands are emerged. Nationally, there is some talk of corn planting progress lagging but nothing too concerning.
Spec funds bought 4,000 bean contracts and may be feeling a little pressure from the gains in wheat and corn. Modest strength in cash markets but China is still lagging on imports. Weather trade will dominate headlines as more and more talk of La Nina setting up in late summer will bring concerns for the bean crop. That fits well with local producers as yield risk in recent years has everyone shy of committing to preharvest hedges. Soybeans have started going in the ground in Oklahoma and planting will likely take off if we receive moisture in this next event.
May KC Wheat +5 @ $6.10
July KC Wheat +6 @ $6.15
May Corn +2 @ $4.42
Dec Corn +2 @ $4.74
May Beans +4 @ $11.65
Nov Beans +0 @ $11.72
Aug Feeders +$1.73 @ $260.20
June Live +$0.15 @ $178.20
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!