Daily Ag Direction 9/16/24
Good Morning!
Short covering was the story last week and follow through will be needed to continue grain rallies. This morning grains are reversing much of their action last week with wheat down over 20 cents as we approach midday. The possibility of rain at the end of the week offers a last minute hail mary for producers hoping to get wheat in for wheat pasture and sets up good soil conditions for grain only producers as October approaches. Harvest conditions look to remain good for the northern corn crop and many await what a flood of corn will do to markets. So far short covering by funds have been offset by farmer selling. If spreads fall apart weakness is set to overtake the market later this year. More risk and less reward looms in soybean markets with a wild range of price guesses dominating the headlines. While the chances of this crop getting smaller are there, we are starting at a high estimate and it is unlikely that trade will remain in this ~$10.00 range with some predicting prices as low as $8.00 on the horizon.
Dec KC Wheat -20.6 @ $5.79
July 25 KC Wheat -19.2 @ $6.04
Dec Corn -3.4 @ $4.10
Dec 25 Corn -1.4 @ $4.47
Nov Beans -2.6 @ $10.04
Nov 25 Beans -2.2 @ $10.56
Oct Feeders +0.250 @ $239.375
Dec Live -0.050 @ $178.450
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!