Markets are trading mostly higher this morning with wheat recovering a small portion of the large losses that we saw to start the week following a larger Canadian wheat crop than was expected. Corn and beans are pretty quiet with both markets remaining within their range as we head into harvest.

Managed funds to start the week were estimated as net sellers of 3k corn to push the net short out to 122k, net sellers of 1k beans to push the net short to 125k, and net sellers of 7k wheat to push the net short out to 28k.

Monthly NOPA crush data for August showed 158 mbu of beans were crushed, which was well-below expectations for 171.3 mbu.

Crop progress showed corn rated 65% g/e (63 expected), beans rated 64% g/e (64), corn harvest 9% (10), and bean harvest 6% (4).

Ukraine reported winter grain planting had reached 6.9%, which was down from 11.8% at the same time a year ago. Their planted wheat area is expected to be 4.7m ha.

France’s farm ministry lowered their soft wheat production forecast again to 25.78mmt, which was down from 26.32mmt last month, and down 27% from last year. They estimated corn production at 14.39mmt, which is up from 14.01mmt last month.

Sovecon raised their Russian wheat production forecast to 82.9mmt (USDA 83).

Corn traded an inside day on Monday with the market pulling back modestly. Directional indicators are neutral with the market a bit overbought following last week’s gains. Support for Dec. is 4.00 and resistance 4.20-4.30. Beans posted a lower low, lower high, and slightly lower close on Monday as the market is stuck in its range. Directional indicators are neutral with support at 10.00 and resistance 10.20-10.30.

Corn is seeing small gains overnight to recover a small portion of Monday’s loss and hold within the upper end of the recent trading range. The outlook is unchanged with short-covering on shrinking crop ideas supportive while harvest pressure is expected to limit the upside.  Look for sideways trade as we head into harvest. Beans pulled back to start the week with the market remaining within its recent trading range. The outlook for beans is unchanged with harvest pressure and expectations for big global supplies to limit the upside while fund short-covering on pull-backs is expected to provide support.

Corn up 1

Beans up 2-3

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