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Posted on:
November 27, 2024

‍Markets are trading mixed overnight with corn and beans bouncing within their recent ranges while the wheat market is approaching the lows that were traded earlier in the week. Volume is expected to slow the rest of the week as the market enters holiday mode.

Managed funds on Tuesday were estimated as net sellers of 8k corn to reduce the net long to 101k, net even in the beans to leave the net short at 75k, and net buyers of 1k wheat to reduce the net short to 59k.

Corn weakness on Tuesday was partially contributed to new tariff concerns with managed funds shedding risk after building a sizable net long position over the last month.

The U.S. dollar is under considerable pressure overnight as it corrects from highs that were made late last week. The index remains near the highest levels we have seen since late 2022.

Soy oil traded sharply higher following the tariff announcement with Canadian canola oil a competing feedstock for the U.S. biofuel industry.

South Africa estimated 22.6% drop in corn production this year, falling from 16.43 mmt to 12.72 mmt (USDA 13.4).

Corn posted a lower low, lower high, and lower close on Tuesday with the market pulling back within its recent range before finding support near the 100 DMA. The market is oversold after recent losses. Support for March is 4.29 and 4.23 with resistance 4.42.

Beans posted a lower low, lower high, and lower close on Wednesday, but the market was able to hold above long-term support near 9.80. The market is correcting from oversold this morning, but directional indicators continue to look bearish.  Support for Jan is near 9.80 and resistance 10.09.

The corn outlook is unchanged with range-bound trade expected moving forward. Demand is very good to provide support below the market, but there is adequate supply to meet the increased demand. The market is expected to be sensitive to any weather issues, but we are still a few months away from the 2nd crop growing season in Brazil.

Beans retested the bottom of their recent trading range yesterday and were able to bounce again. The outlook for growing supplies globally is unchanged with mostly favorable weather expected in South America. With the market hovering near the bottom of the recent range, there is risk of a push to new lows. Producers can look at puts to cover downside risk on unpriced beans.

Corn up 2

Beans up 7

‍

Skip to Content
Posted on:
November 27, 2024

‍Markets are trading mixed overnight with corn and beans bouncing within their recent ranges while the wheat market is approaching the lows that were traded earlier in the week. Volume is expected to slow the rest of the week as the market enters holiday mode.

Managed funds on Tuesday were estimated as net sellers of 8k corn to reduce the net long to 101k, net even in the beans to leave the net short at 75k, and net buyers of 1k wheat to reduce the net short to 59k.

Corn weakness on Tuesday was partially contributed to new tariff concerns with managed funds shedding risk after building a sizable net long position over the last month.

The U.S. dollar is under considerable pressure overnight as it corrects from highs that were made late last week. The index remains near the highest levels we have seen since late 2022.

Soy oil traded sharply higher following the tariff announcement with Canadian canola oil a competing feedstock for the U.S. biofuel industry.

South Africa estimated 22.6% drop in corn production this year, falling from 16.43 mmt to 12.72 mmt (USDA 13.4).

Corn posted a lower low, lower high, and lower close on Tuesday with the market pulling back within its recent range before finding support near the 100 DMA. The market is oversold after recent losses. Support for March is 4.29 and 4.23 with resistance 4.42.

Beans posted a lower low, lower high, and lower close on Wednesday, but the market was able to hold above long-term support near 9.80. The market is correcting from oversold this morning, but directional indicators continue to look bearish.  Support for Jan is near 9.80 and resistance 10.09.

The corn outlook is unchanged with range-bound trade expected moving forward. Demand is very good to provide support below the market, but there is adequate supply to meet the increased demand. The market is expected to be sensitive to any weather issues, but we are still a few months away from the 2nd crop growing season in Brazil.

Beans retested the bottom of their recent trading range yesterday and were able to bounce again. The outlook for growing supplies globally is unchanged with mostly favorable weather expected in South America. With the market hovering near the bottom of the recent range, there is risk of a push to new lows. Producers can look at puts to cover downside risk on unpriced beans.

Corn up 2

Beans up 7

‍