Daily Ag Direction 12.20.24
After finding a new contract low, soybeans are finding support and leading a bounce back in the start of today’s session. Weather is very favorable for soybean development in South America with most Brazilian crop growing areas expecting normal to above average rainfall. One thing to consider as soybeans continue to get beat up is what happens to new crop domestic corn & soybean acres. Will US some amount of soybean acres swap to corn? Time will tell as we get closer to planting season.
Russian wheat quota for second half of 24/25 season announced 11 mmt lower than last year at 10.6 mmt to combat internal supply issues & inflation of the ruble. The recent drop in US KC Wheat has given domestic exporters a seat back at the table, however, Argentinean wheat remains the cheapest in the world.
Cotton is currently looking to hold key support at 67.00 March 25. A close below that level will have it searching for a new bottom likely to be in the 62.00 area.
As a potential government shutdown looms over Washington the trade is watching closely. Potential impacts to commodities could be negative as no USDA reports would be released during and there is biofuel/renewable legislation hanging in the balance.
Markets as of 9:37 AM
March KC down 1 @ 5.42 / Wheat Resistance @ 5.75 / Support @ 5.45
- New crop July25 KC @ 5.58
March Corn up 3.5 @ 4.44 / Resistance @ 4.50 / Support @ 4.30
- New crop Dec25 @ 4.36
Jan Beans up 12.5 @ 9.75 / Resistance @ 9.90 / Support @ 9.60
- New crop Nov25 @ 9.84
If you have any questions, please reach out to your CEA Risk Management Advisor. Merry Christmas!
Kavan Killian
RMA TX/OK Panhandle 806-753-7099
