Daily Ag Direction 6/4/24
Good Morning!
It was a bad day yesterday for wheat as it failed to maintain trendline support. Right now the weather talk just feels like noise as market participants look for an answer to the volatility. Egypt tendering for wheat and Ukraine is currently cheapest at $271.75 FOB Odesa and Russian wheat is $285. Spring wheat crop conditions came in at 74% G/E above the 5-year average of 66%. Winter wheat 49% G/E. Texas is 33% harvested, OK 22% and Arkansas and North Carolina at 10%. Weakness in wheat and a lack of bullish fundamentals allowed corn to slip but is back up in the day session. Export inspections at 54.1 mbu surpassed estimates between 37-51 mbu. Mexico and Japan are the major destinations. Soybeans have stopped the bleeding as technicals suggest buying at this level. We are moving into the weather market for row crops. Talks of a Fall La Nina arrival have some analysts concerned but that is very uncertain and subjective at the moment.
July ’24 KC Wheat -6.5 @ $6.94
July ’25 KC Wheat -6.5 @ $7.07
July Corn +1 @ $4.45
Dec Corn +1.5 @ $4.65
July Beans -2.5 @ $11.82
Nov Beans -6.5 @ $11.57
Sept Feeders +0.050 @ $257.925
Aug Live -0.275 @ $178.600
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!