Daily Ag Direction 12.18.2024
Bean contracts dropped over $.12 in the night trade falling to new contract lows. Concerns over weak exports of Malaysian palm oil, a close substitute for soybean oil & the worlds second largest grower of that commodity, becoming more competitive with soybean oil. The market was expecting an update to the Indonesian government B40 biofuel allocation to spur demand, but with no such news here yet the market fell through to lower support areas. In addition, S. America looks poised to have a record crop of 169 mmt of beans, 13mmt higher than the previous record just last year. With all the focus on soybeans in the overnight, corn and wheat seem to be thankfully overlooked with markets trading fairly flat.
After the morning break wheat and corn are rebounding a bit after getting oversold from yesterday & the overnight. Soybeans are trading less in the red, but still very close to new support levels at ~$9.65 Mar. if beans can’t hold above 9.65 soybeans will get sloppy as it searches for a new support level a leg lower.
Markets as of 8:45 AM
March KC up 7 @ 5.60 / Wheat Resistance @ 5.75 / Support @ 5.45
- New crop July25 KC @ 5.75
March Corn up 2.5 @ 4.46 / Resistance @ 4.50 / Support @ 4.18
- New crop Dec25 @ 4.39
Jan Beans 9.66 / Resistance @ 10.10 / Support @ 9.64
- New crop Nov25 @ 9.77
If you have any questions, please reach out to your CEA Risk Management Advisor. Have a good day!
Kavan Killian
RMA TX/OK Panhandle 806-753-7099
