Written Commentary
Ag Market View for July 26.24
July 26, 2024
CORN
Prices were steady to $.01 lower today in rather uneventful trade. It was an inside day for Mch-24 with resistance at the 50 day MA at $4.92, followed by the 100 day MA at $4.98. Support is at the Nov-23 low at $4.70. Markets await key soybean crush data tomorrow and a potential announcement from the US Treasury Dept. regarding corn based ethanol. At midday wire services reported that President Biden favors recognizing the ethanol industry for sustainable aviation fuel tax credits under the Inflation Reduction Act. The Treasury Dept. has so far declined comment. Export sales at 56 mil. bu. were in line with expectations. YTD commitments at 1.070 bil. are up 36% from YA vs. the revised USDA forecast of up 26%. Commitments however at 51% of the USDA forecast are slightly below the historical average of 53%. The BAGE reports Argentina’s corn conditions improved 4% to 40% G/E while fair slipped 3% to 59% with only 1% of the crop considered poor or VP. They report plantings at only 49% compared to the Rosario Grain Exchange that placed progress at 60%. A number of agricultural groups in Argentina reportedly are rejected the new Govt. proposal to increase the corn and wheat export tax from 12% to 15%.
SOYBEANS
Prices were steady to $.01 lower today in rather uneventful trade. It was an inside day for Mch-24 with resistance at the 50 day MA at $4.92, followed by the 100 day MA at $4.98. Support is at the Nov-23 low at $4.70. Markets await key soybean crush data tomorrow and a potential announcement from the US Treasury Dept. regarding corn based ethanol. At midday wire services reported that President Biden favors recognizing the ethanol industry for sustainable aviation fuel tax credits under the Inflation Reduction Act. The Treasury Dept. has so far declined comment. Export sales at 56 mil. bu. were in line with expectations. YTD commitments at 1.070 bil. are up 36% from YA vs. the revised USDA forecast of up 26%. Commitments however at 51% of the USDA forecast are slightly below the historical average of 53%. The BAGE reports Argentina’s corn conditions improved 4% to 40% G/E while fair slipped 3% to 59% with only 1% of the crop considered poor or VP. They report plantings at only 49% compared to the Rosario Grain Exchange that placed progress at 60%. A number of agricultural groups in Argentina reportedly are rejected the new Govt. proposal to increase the corn and wheat export tax from 12% to 15%.
WHEAT
Prices were steady to $.01 lower today in rather uneventful trade. It was an inside day for Mch-24 with resistance at the 50 day MA at $4.92, followed by the 100 day MA at $4.98. Support is at the Nov-23 low at $4.70. Markets await key soybean crush data tomorrow and a potential announcement from the US Treasury Dept. regarding corn based ethanol. At midday wire services reported that President Biden favors recognizing the ethanol industry for sustainable aviation fuel tax credits under the Inflation Reduction Act. The Treasury Dept. has so far declined comment. Export sales at 56 mil. bu. were in line with expectations. YTD commitments at 1.070 bil. are up 36% from YA vs. the revised USDA forecast of up 26%. Commitments however at 51% of the USDA forecast are slightly below the historical average of 53%. The BAGE reports Argentina’s corn conditions improved 4% to 40% G/E while fair slipped 3% to 59% with only 1% of the crop considered poor or VP. They report plantings at only 49% compared to the Rosario Grain Exchange that placed progress at 60%. A number of agricultural groups in Argentina reportedly are rejected the new Govt. proposal to increase the corn and wheat export tax from 12% to 15%.
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