Markets are pulling back overnight with beans, which have been the best performer to start the week, taking a breather on a wetter Brazilian forecast along with the corn and wheat.
Managed funds on Tuesday were estimated as net sellers of 4k corn to push the net short out to 134k, net buyers of 2k beans to reduce the net short to 95k, and net sellers of 2k wheat to push the net short to 23k.
Workers at the six main grain terminals of Vancouver, Canada went on strike yesterday, which could have implications on their canola and wheat exports.
The EU estimated their soft wheat exports thus far through the marketing year at 5.86mmt, which is down from 7.67mmt over the same period a year ago.
Ukraine reported that 944,500 hectares of winter grains had been sown so far for the 2025 growing season.
The Rosario Exchange said grains and oilseed output for Argentina could reach 143mmt for the 24/25 season if they experience normal weather.
September 1st quarterly stocks will be out on Monday at 11 with corn stocks expected to be 1.844 bbu and bean stocks 351 mbu.
Corn posted a bearish reversal on Tuesday with prices hitting the highest level since late July and then reversing to close under pressure and back within the recent range. Directional indicators are neutral. Support for Dec. is 4.00-4.04 and resistance 4.20-4.30.
Beans posted higher highs, higher lows, and the highest close since July 26th, but prices did finish well below the intraday lows and have dropped back within the recent range overnight. The gap that was left on July 29th was filled at 10.485. The market is getting to be a bit overbought with support at 10.30 and resistance 10.40-10.50.
Corn failed to break out of its recent range yesterday with prices pushing through resistance but then closing back lower. The outlook for the coming weeks is unchanged with fund short-covering expected to support the market on pull-backs, but harvest pressure is expected to keep a lid on prices at least until we get closer to the 50% mark on harvest. Sell short-term puts when the market hits the lower end of the range and sell short-term calls when it gets to the upper end of the range.
Beans hit new highs on Tuesday with the market fulfilling upside gap objectives then pulling back. We’ve seen steady demand from China over the last few weeks, but the US and global bean supply outlooks remain very bearish with beans expected to underperform the corn and wheat markets. Make sure sales are caught up after the recent price gains.
Corn down 2
Beans down 9