Daily Ag Direction 03/26/25
Good Morning!
Wheat trading slightly positive this morning as forecasts remain dry for major winter wheat growing areas. We are starting to hear a lot of nervousness in the country about wheat conditions putting more and more stress on a timely April rain to change directions. Not to sound like a broken record, but the fund short position remains; a reversal in the spec fund position would provide tremendous fuel for wheat bulls. However, short covering in wheat remains to be seen and hasn’t happened. Corn continues to trade a range between the 200 and 100 day moving averages. Weakness in corn hurts wheat whereas strength in wheat would not necessarily result in 1 to 1 positives in corn. We have a large crop forecast to be planted and that will be the focus of traders in the near term. South America remains wet across Argentina and Brazil. Policy news continues to trade in beans and tariff threats at the beginning of April will have the chance to dominate trade in the bean market. Of course, a big corn crop could result in a small bean crop in the US so we could find some strength on a small bean planted acreage number. Bean crop failures in fringe growing areas for the past few years will have a greater impact if core areas lose acres as well.
May KC Wheat +1.4 @ $5.71
July 25 KC Wheat +0.6 @ $5.86
May Corn +1.6 @ $4.60
Dec 25 Corn -0.6 @ $4.48
May Beans +4.6 @ $10.07
Nov 25 Beans +4.2 @ $10.11
Apr Feeders -0.100 @ $284.750
Apr Live -0.350 @ $206.025
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
-Trent
