Markets are trading lower this morning with beans seeing weakness as Chinese demand after returning from holiday has been disappointing and the market grows more comfortable with the forecasted rains in Brazil.

Managed funds to start the week were estimated as net buyers of 2k corn to reduce their net short to 71k, net sellers of 1k beans to push the net short out to 48k, and net buyers of 2k wheat to reduce the net short to 23k.

Crop progress yesterday showed corn rated 64% g/e (64 expected), beans rated 63% g/e (63), corn harvest 30% (34), bean harvest 47% (44), and winter wheat 51% planted (54).

Ukraine’s Ag Ministry said 2.88m hectares (55.4%) of their expected winter crop area has been planted. Winter wheat area is currently forecast at 4.5m hectares, but it could increase to 5m as producers shift away from winter canola. The ministry said wheat harvest was complete and estimated the crop at 22 mmt (USDA 23).

USDA will be out Friday with their October supply and demand adjustments.

Corn posted a bullish reversal from lows to start the week with prices testing support near 4.20 and turning higher. The market is pulling back this morning but has not taken out yesterday’s low. Support is 4.20 and resistance 4.41.

Beans posted a lower low, lower high, and lower close on Monday. The market took out trendline support overnight and is hitting new recent lows this morning. The market is oversold, but the breach of support suggests the market will seek out next support levels. Support is 10.00 and resistance 10.30.

Wheat posted a bullish reversal from lows to start the week but is pulling back to test trend support this morning. The market has seen a healthy correction from highs, but a drop below yesterday’s low would project further weakness. SRW support is at 5.85 and resistance 6.15. HRW support is 5.80-5.85 and resistance 6.55.

Corn put in a solid performance to start the week with prices testing support and reversing to finish higher. It finds itself in a similar spot this morning with the market giving back most of yesterday’s gains overnight. The outlook in the near-term is unchanged with harvest pressure expected to limit the upside while shrinking production ideas are expected to be supportive on pull-backs. Look for sideways, choppy trade as we head toward the USDA numbers on Friday.

Beans started the week off with small losses and those losses have accelerated this morning. The bean outlook is bearish with US and global supplies projected at burdensome levels with beans expected to be the weak leg moving forward. Make sure sales are caught up and consider using puts to protect any unpriced bushels.

Wheat continues to have the most supportive fundamentals on tightening supplies held by major exporters around the world. Support held yesterday with the market showing signs that the correction has run its course. Look for buyers to step in on pull-backs.

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Corn down 3-4

Beans down 12-15