Markets are trading lower across the board with beans leading the move to the downside with selling in the beans picking up last night as the results of the election came out with tariff. Outside markets have crude trading sharply lower while equity markets have surged to all-time highs.

Managed funds on Tuesday were estimated as net buyers of 3k corn to reduce the net short to 11k, net buyers of 4k beans to reduce the net short to 55k, and net buyers of 2k wheat to reduce the net short to 29k.

Egypt bought 290 tmt in their recent tender with recent price restrictions by Russia allowing other Black Sea origins to take all of the business.

Corn traded an inside day on Tuesday with the market finishing at the middle of the recent range. The market is lower this morning, but remains very much range-bound. Support is near 4.10 and resistance 4.24.

Beans traded an inside day on Tuesday, but have dropped back to the bottom of the recent range overnight. With the third test of the bottom of the range, the downtrend is likely to restart. Support is 9.80 and resistance 10.00.

Corn is trading lower this morning on fears that trade policies may negatively impact US exports. The current supply and demand situation would suggest we could continue to see a range-bound trade as the market will keep some risk premium for South American production while US supplies are comfortable enough to keep a lid on prices. With exports making a relatively smaller portion of US corn demand, tariff concerns aren’t as big of a deal. Look for the range-bound trade to continue.

Beans are back at their recent lows on fears that we will get into a trade war with the world’s largest bean importer (China) again. Even without a trade war, the bean market had a very negative outlook on burdensome supplies. Look for beans to be the weak leg moving forward with South America needing to have a major crop failure to change the price outlook.

Corn down 3-4

Beans down 15-20

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