Daily Ag Direction 5/16/24

Good Morning!

Wheat markets trended lower to start the overnight but have recovered nicely this morning. Not much new on headlines, as the market continues to digest the Black Sea weather situation. Also, some talk this morning of US HRW for July working into Brazil due to high FOB values seen in Argentina from producers holding on to cash. Day 2 of the Kansas wheat tour covered SW KS and yield was estimated at 42.4/bu vs last year 27.6/bu and the 5 year average of 40.8/bu. The tour noted more freeze damage but less disease than previous years.

Corn markets are down slightly to open the morning. Midwest weather sees a nice window to plant corn which will put pressure on the market. 

Soybean markets are starting the day in the green. NOPA indicating a record amount of downtime by crushers is still shocking to the indusry as cash meal/oil did not appear to reflect this, but the big drop in bean basis does make sense. China is estimated to be around 20% covered for July needs and around 10% covered for August needs.

July KC wheat up 8.75 @ $6.8375

July Chi wheat up 6.75 @ $6.725

July beans up 1.5 @ $12.15

Nov beans up .5 @ $12.015

July corn down .75 @ $4.6175

Dec corn down .75 @ $4.8625

Please reach out to your Risk Management Advisor with any questions and have a great day!