Daily Ag Direction 9/2/25
9/2/25
In the first trade back a rally on Friday from a cold Midwest September forecast & fund covering and then a 3 day weekend, grains did not extend their rally going into the break. Wheat and beans took a spill in the overnight and corn, while lower, held on to much of the gains made last Friday. Funds were active buyers in the corn market last week with the COT showing them buying back 3.7k contracts while the shorts still have -110k contracts. With the move to $4.20 Dec off a low for the year of $3.90 expect some volatility this month while the trade continues to look at yield potential of this corn crop, if the dry finish to the growing season makes a large impact, & the export demand of this corn crop. Weekly exports for corn remain very strong coming in above pace by over 3mmt while milo exports show no enthusiasm (5mmt need to meet USDA expectations, but 0 mmt done last week). On the soybean side funds were also buyers of beans & bean meal, but sold some oil contracts. Likewise bean exports also a bit above the USDA pace, but serious questions remain about what will happen with the US soybean crop. Without any Chinese business at the start of the marketing year the US will find other buyers, but it will drag out for several months longer than with China in the market. Wheat trade moves lower while the US is trying to catch up to the EU which traded much lower yesterday in their session. Funds were buyers as well here, but not enough to withstand global FOB values sinking lower in the search to be competitive.
Markets as of 9:05am
|
Contract |
Symbol |
Movement this session |
Price |
|
Dec 25 KC Wheat |
KEZ25 |
-10 |
5.09 |
|
July 26 KC Wheat |
KEN25 |
-10 |
5.56 |
|
December 25 Corn |
ZCZ25 |
-5.25 |
4.1475 |
|
November 25 Beans |
ZSX25 |
-15 |
10.39
|
|
|
|
|
|
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
-Kavan Killian 806.753.7099 RMA TX/OK Panhandle