Daily Ag Direction 4/26/24
Wheat continues its run up this week, building on this week's gains after a quiet overnight session. With 60-70 cent gains this week across the complex, multiple moving averages / technical objectives have been taken out and the next target is the 200 day mover for the new crop July contract at $6.61. Underlying fundamental support from shorter stocks in India and production risk due to dryness not just domestically but also in the Black Sea region coupled with these technical triggers has made wheat futures pull away from corn and beans this week.
Despite being comparatively sluggish, corn has hit sell signals on the charts as well. There is talk of parts of the Eastern corn belt being waterlogged, but overall it is early for a true weather market in corn. A significant increase in overall planting progress is expected for Monday's update and could trigger some selling if wheat conditions stabilize and the market cools off. On the fundamental side for corn, export sales numbers were stronger and aided by improving water levels in the Panama canal. Bean futures seeing limited upside as exports continue to lag.
Reminder May basis contracts are at the end of the line and need to be priced or rolled to the July.
May KC wheat is up 6.5 at 6.38
July KC wheat is up 6 at 6.46
May Chi wheat is up 4.5 at 6.06
July Chi wheat is up 3.75 at 6.24
May corn is up .5 at 4.41
Dec corn is even at 4.76
May beans down 3.5 at 11.59
Nov beans down 1 at 11.74
Feeder cattle contracts up by around $1.00 so far this morning.
Don't hesitate to reach out to your Risk Management Advisor with any questions and have a great day!
