Daily Ag Direction 12/16/24
Good Morning!
Paris wheat is slightly supportive to US prices in the early session. A large short position in Paris wheat could provide positive moves in the wheat market if they are required to cover their shorts. FOB markets continue to firm and export issues in Ukraine are worth watching. The March contract is close to testing the 200-day ma. A strong close today could set the tone for the week.
Corn is stronger overnight. The COT report showed buying by funds at 77k contracts to a long position of 170k contracts. Finding buyers is very important to slow the decline and firm positions. Stronger wheat bids could spillover support to corn.
Soybeans in Brazil are nearly completely planted. Argentina continues to trend towards dry conditions and is some of the only supportive weather news available to beans. A weak La Nina is still forecasted but it remains unclear what the total impact will be to South American production. Demand is still working on a well supplied stock of beans and price rallies seem difficult to manufacture.
Mar KC Wheat +5.4 @ $5.63
July 25 KC Wheat +4.0 @ $5.78
Mar Corn +2.2 @ $4.45
Dec 25 Corn +1.6 @ $4.41
Jan Beans -0.2 @ $9.88
Nov 25 Beans -2.4 @ $10.04
Mar Feeders +0.400 @ $258.075
Feb Live -0.075 @ $191.950
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
-Trent
