Daily Ag Direction 5/3/2024
Short covering by the funds continue to have the grain futures running hot. Paris wheat paved the way for US wheat markets to charge higher in the overnight and into this morning as weather forecasts for Southern Russia and Western Ukraine show ongoing dryness concerns and production estimates for the region are being trimmed accordingly. KC wheat is set up to challenge its 200 day moving average at 6.57 and Chicago wheat is eyeing the same technical objective at 6.25.
Flooding in Brazil is causing projections of losses of around 3 mmt for beans, and buy-in on the meal side has been supportive. Key test for beans today is 12.22 on the nearby July contract.
Drought /insect damage has Argentina slashing their corn estimates to 46.5 MMT, well below the USDA's current estimate of 55 MMT and the intial 60 MMT projection. That plus planting delay concerns in the corn belt has corn popping above the 100 day moving average on the nearby July contract of 4.59 going into today's session. Weather forecasts, both domestic and international, will continue to be a market mover as we close out the week.
Jul KC wheat up .225 at 6.59
Jul Chi wheat up .245 at 6.29
Jul corn up .055 at 4.65
Dec corn up .0575 at 4.85
Jul beans up .0625 at 12.05
Nov beans up .0625 at 11.94
May feeder cattle down .40 at 243.20
Aug feeders down .275 at 255.70
If you have any questions, please do not hesitate to reach out to your Risk Management Advisor and have a great day!