Markets are trading with small gains overnight with the unwind of old crop/new crop spreads in the corn and beans pausing for the time being after both markets saw those spreads come under heavy pressure the last couple days.

Outside markets are mixed with gold hitting a new record high, up $86 while equity markets pulled back on more tariff uncertainty. The U.S.$ is trading at recent lows

China’s Q1 economic growth was better than expected as companies rushed exports ahead of tariffs, but growth is expected to slow moving forward.

Managed funds on Tuesday were estimated as net sellers of 4k corn to reduce the net long to 93k, net sellers of 3k beans to push the net short out to 10k, and net sellers of 2k wheat to push the net short to 100k.

NOPA crush came in at 194.551 mbu (197.6 expected). Oil stocks were 1.498 b lb (1.617 expected). Oil surged post report, which pulled beans along initially despite the lower crush number.

Cattle on feed will be out on Friday with on feed expected to be 98.2%, placements 103.4%, and marketings 100.7%.

The EU reported soft wheat exports through the 2024/25 marketing year were down 35% from last year following their short crop.

Argentine wheat harvest is forecast at a record 20.5 mmt with potential for that to increase if the temporary tax cut through the end of June is extended.

India reported a 57% increase in govt. owned wheat stocks, which is the highest in 3 years as the country is finally able to raise reserves after a few disappointing years of production.

Corn posted lower lows, lower highs, and a lower close on Tuesday with the market dropping out of the consolidation range that we saw for the first couple months of the year, exposing potential for a larger correction in the near-term. Support is 4.72 and resistance 4.90.

Beans posted lower lows, lower highs, and a lower close on Tuesday with the market pulling back to test support at the top of the prior trading range before bouncing in the overnight trade. There is a lot of room for a larger correction to the downside as the market corrects. Support for May is 10.30 and 10.00 with resistance at 10.50.

Corn is catching a small bid overnight with prices stabilizing after correcting on Monday and Tuesday. The outlook is little changed with tightness in old crop supplies expected to provide support on pull-backs while expectations for big U.S. corn area are expected to be upside limiting factors. With the sharp move higher over the last few weeks and bearish seasonals as the U.S. crop gets planted, producers should make sure sales are caught up and look at option strategies to protect new crop prices.

The bean rally has taken a breather this week with record global supplies and tariff uncertainty limiting buying interest. Expectations for lower area in the U.S. will provide the market with some support, but the outlook for U.S. export demand is poor as China shifts purchases to South America and the record Brazilian crop flows into global channels. Use options to protect unsold old crop beans.

Corn up 1-3

Beans up 1-4