Markets are under pressure during the night session with beans and wheat taking the brunt of the selling with a strong U.S. dollar and lower European wheat prices weighing.
Managed funds on Tuesday were estimated as net sellers of 1k corn to reduce the net long to 103k, net buyers of 4k beans to reduce the net short to 75k, and net even in the wheat to leave the net short at 64k.
Disappointing news for the biofuel industry yesterday with the Biden Administration saying they would not finalize guidelines on new clean fuel production tax credits, which were expected to drive expansion of sustainable aviation fuel usage moving forward.
The EU said wheat exports since their marking year began in July were down 31% from the same period a year ago.
Cargill announced plans to cut 5% of their jobs globally as the company “faces a cyclical downturn”. These layoffs come a week after ADM said they were seeking to control costs as the “challenging commodities cycle is likely to continue into 2025”.
Mexico said they expected to resolve the dispute under the U.S.-Mexico free trade pact regarding restrictions on GMO corn by December 14th. U.S. corn exports to Mexico have continued to be very large despite the trade dispute.
Heavy rains are hitting Australian wheat areas as harvest ramps up, raising concerns about the quality of their bumper wheat crop.
Stats Canada will update their 2024 production estimates with the wheat crop expected to be 34.04 mmt and canola crop 18.51 mmt.
Technical trends have corn with a neutral bias, beans a neutral bias, and wheat in a downtrend.
Corn posted a higher high and higher low on Tuesday but finished with a small loss as the market continues to see choppy trade within the recent range. Directional indicators are neutral. Support for March is 4.23 with resistance 4.42.
Beans posted a higher high, higher low, and higher close on Tuesday with the market recovering within its recent range. The market is testing the bottom of the range again this morning with an eventual push through support likely. Support for Jan. is near 9.80 and resistance 10.09.
No major changes to the corn outlook with the market expected to remain range-bound for now as market moving news is non-existent. Demand is strong, but supply is adequate to meet that demand at least for now. Be patient with sales until the market moves into the upper end of the range.
Beans were able to bounce on Tuesday but are under pressure overnight with the market approaching long-term support near 9.80 again. South American weather is non-threatening with the large crop they are expected to harvest an upside limiting factor. Undersold producers should use puts to cover downside risk on unpriced beans.
Corn down 2
Beans down 6