Daily Ag Direction 8/27/24
Good Morning!
It’s been a wild morning in KWU/Z spread action as open interest decreased 10k contracts with 8k contracts rolled. We saw the spread trade into -6 at one point. Hard to nail down a fundamental reason for this but the delivery period looming seems to be a good enough reason. Terminal bids in Hutch could provide some insight as will the KC/CME Sept spread. CME also lost open interest at 11k contracts as 20k went off the Sept with 9k rolling to the Dec. Whatever makes wheat prices go up for producers seems to be welcomed with cash sales. Overall however, Russian and EU fob values will continue to drag our values down. Exports are running 28% over year-ago levels. Corn and soybeans are seeing a little positive price action with little trade news overly interesting. US soy prices are continuing to be competitive on the world market but that makes for grumpy producers at current price levels and yield expectations.
Sept KC Wheat +14.6 @ $5.40
Dec KC Wheat +9.4 @ $5.47
July 25 KC Wheat +8.4 @ $5.69
Dec Corn +6.6 @ $3.93
Dec 25 Corn +4.4 @ $4.35
Nov Beans +4.4 @ $9.85
Nov 25 Beans +3.4 @ $10.34
Sept Feeders +1.375 @ $242.725
Oct. Live +2.800 @ $179.775
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!