Daily Ag Direction 6/18/24
Good Morning!
Wheat has stopped most of the bleeding here down 3 cents this morning. There is still a lot of chatter that wheat will spill into the feed sector now and that corn will begin to be the backstop for falling prices. The market wants to hold $6.00/bu. here and that is about a $1.50/bu. over the corn price. Watch that relationship as we move forward. The market is certainly oversold at this point and technical chart exploration higher would make some sense but we are trading lower again. U.S. is still $10-15/mt out of the money on exports to most destinations so wheat will continue to be used internally for the most part. Corn is having a better day up 7 and providing that baseline to wheat. Crop ratings at 72% G/E vs. the 73% G/E trade estimate. We are still a good export play into Mexico allowing corn to move south and out of the country. The second corn crop harvest in Brazil is estimated at 21% complete. Beans up 15 cents today after reeling with other commodities to start the week. Crop conditions are called steady but questions mount over mounting heat forecasts in the coming weeks. We are setting up for some interesting reports in July and August if weather threatens this crop as La Nina forecasts for the southern hemisphere continue to make headlines.
July ’24 KC Wheat -3 @ $6.03
July ’25 KC Wheat -1.2 @ $6.46
July Corn +7 @ $4.51
Dec Corn +5 @ $4.68
July Beans +15 @ $11.73
Nov Beans +6 @ $11.36
Sept Feeders -0.350 @ $262.350
Aug Live -0.450 @ $182.725
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
