Daily Ag Direction 5/28/24
Good Morning!
Wheat leading the way again to start the short trade week. MATIF wheat gapped higher, so the US market followed suit. We are off the highs set in the overnight, but only by about a dime. Very choppy trade as the market continues to try and understand Russian production numbers and grapple with fund buying in the MATIF. Of note, KC open interest increased by 7,000 contracts whereas the Chicago only increased by 2,000 contracts. Farmer activity is increasing as harvest gets rolling. Wet weather forecast for HRW growing areas over the next week so harvest progress will suffer. Corn planting progress is expected to increase above the 5-year average on fast progress over the weekend. The market will explore the impact of PP and how many corn acres will move to beans. Soybeans made good progress with planting as well and most believe the crop is off to a good start. A double top has appeared in the bean chart and prices are struggling this morning. World fundamentals are not helping as higher stocks-to-use ratios are expected into next year. We will need a weather scare for beans to be a leader.
July ’24 KC Wheat +14.5 @ $7.36
July ’25 KC Wheat +2.5 @ $7.55
July Corn -1.5 @ $4.64
Dec Corn -1.5 @ $4.87
July Beans -16 @ $12.32
Nov Beans -10 @ $12.09
Sept Feeders +0.675 @ $262.425
Aug Live -0.250 @ $180.875
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
