Daily Ag Direction 5/20/24
Good Morning!
Wheat is roaring out of the weekend. General feel is that dry weather continues to grip Russian wheat growing regions over the next two weeks. Last week the market would trade higher in the morning and back off through the session. Watch this week to see how supportive this market can be. If we approach last week’s highs and see strong buying on intermittent weakness this market could establish a new trading range to springboard off of if weather concerns become greater. Ukrainian analyst reporting that 20-30% of their crop was impacted by the recent freeze and dry weather that is impacting Russia. This weather event seems to be impacting Hungary and Romania as well. Western Europe is wet so it seems feast or famine is driving European wheat growing conditions. Corn comes off a brutal week stronger following wheat positivity this morning. We should see some good progress on planting over the weekend and farmers slowing down on selling as prices retreat. Funds still short 125,000 contracts across SRW, KC, corn and beans but that comes from a position that was short 540,000 contracts a few weeks ago. Unless a big long position replaces this short covering, further price improvements from this aspect of the market may be limited. Weather will continue to drive market movement in the near-term until wheat harvest gets rolling.
July ’24 KC Wheat +28 @ $6.90
July ’25 KC Wheat +24 @ $7.37
July Corn +6 @ $4.59
Dec Corn +6.5 @ $4.83
July Beans +18 @ $12.46
Nov Beans +12.5 @ $12.16
Aug Feeders +0.175 @ $260.075
June Live +0.150 @ $179.200
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
