Daily Ag Direction 05/19/25
Good Morning!
Green across markets to start the week. Short covering and weaker USD is the feature in wheat markets. The COT report had funds net sellers again last week with a new record short in KC along with funds selling CME, MGX and Paris at over 500k contracts. Saudi Arabia bought 621k mt of milling wheat with EU/UKR/Russian origin. South Korea bought 50k mt of US milling wheat while US KRW is getting sold out of the Gulf and the PNW. Funds are now short 64k contracts in corn after selling 93k contracts last week. Good planting conditions and good growing conditions has markets in a risk off attitude in corn. Soybeans remain relatively unchanged and are trading weather news. Bean oil continues higher but could be at risk if US planting conditions remain favorable. Argentina experienced heavy rainfall over the weekend but will not move prices much in the near term. Financial markets getting a bump with 30-year treasury yields jumping 55 on Moody’s downgraded US credit rating. This has caused investors to dump bonds. Cattle recovering this morning after losses Wednesday and Thursday. Basis has propped up any shortfall in futures and prices remain strong. New World Screwworm news has managed to crank up volatility but cash cattle remains strong. Concerns over consumer demand at these values continues and pace of kill will have to remain high. Otherwise, cattle producers are riding high.
July KC Wheat +5.6 @ $5.22
July 26 KC Wheat +9.6 @ $6.02
July Corn +1.6 @ $4.45
Dec 25 Corn +2.2 @ $4.38
July Beans +0.4 @ $10.51
Nov 25 Beans +1.6 @ $10.37
May Feeders -0.175 @ $296.675
June Live +0.750 @ $212.975
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
-Trent
