Daily Ag Direction 8/12/24
Good Morning!
Markets risk off this morning in anticipation of the August WASDE report. Wheat has a few things to digest today as we await news on the Egyptian tender results later today. This tender is for 3.8 mmt on 270 day terms garnering 16 different offers. WASDE data for wheat will be sparse but adjustments are expected for Europe and Black Sea areas. General feel is that if any rally were to be possible, corn and beans will hold it back. Corn set new lows in the overnights and corn is moving despite lower prices. Many consider current price levels to be below break-even but that doesn’t matter when corn needs to move to make room for another large crop. Beans grind lower on forecast news and overall weakness in commodities. Expect further declines into September and October. Chinese exports last week give some fuel to bulls but it will take a lot of green diesel demand and further export sales to move higher.
Sept ’24 KC Wheat -8.4 @ $5.46
July ’25 KC Wheat -9.4 @ $5.85
Sept Corn -2.2 @ $3.75
Dec Corn -2.2 @ $3.93
Sept Beans -8.2 @ $9.81
Nov Beans -7.0 @ $9.96
Sept Feeders -0.650 @ $240.950
Oct. Live -0.450 @ $180.700
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!