Markets are trading higher this morning with the U.S.$ hitting new lows, which is providing some general support to agriculture markets. Optimism that the U.S. and Beijing can come to a trade resolution is also helping to support beans.

Friday’s CFTC report showed a massive week of buying for corn and beans with managed funds net buyers of 71k corn to push the net long back out to 125k as of 4/15, funds bought 77k beans to push the net long to26k, and net buyers of 6k wheat to reduce the net short to 96k. Buying in corn and beans was much larger than expected, with the weekly buying in beans the second largest week of net buying ever.

Funds on Thursday were estimated as net sellers of 3k corn to reduce the net long to 127k, net sellers of 2k beans to drop the net long to 27k, and net buyers of 1k wheat to reduce the net short to 93k.

The April cattle on feed report showed on feed at 98.4% (98.2 expected), placements 105.1% (103.4 expected), and marketings 101.1% (100.7 expected).

Japan said they were considering increasing their imports of soybeans and rice from the U.S. in trade negotiations with the U.S.

Chinese state media reported that they estimate China’s grain production to reach a record 709 mmt, with soybeans leading the growth.

China soybean imports from the U.S. in the month of March were up 12% from the prior year as buyers rushed to secure supplies ahead of the potential trade war. Brazil is expected to dominate sales into China in the coming months, which is typical.

Corn traded an inside day on Thursday with the market finishing with small losses in a quiet trade. The market is consolidating within the range that we’ve seen for the last week with May support 4.72 and resistance 4.90.

Beans traded an inside day on Thursday with the market finishing with small losses. The market is consolidating within its recent range, with May support 10.30 and resistance 10.50.

Corn is starting the week with small gains as we see prices consolidate in their recent range as we wait for trade war developments, as well as waiting to see how the start of the planting season goes. Speculative funds were aggressive buyers last week, which seems like a macro play to hedge against a potential move lower in the U.S.$. The longer-term outlook is unchanged that old crop supply tightness is supportive while expectations for big, planted area limit the upside in new crop. Producers should look at option strategies to establish floors on new crop bushels.

Beans are starting the week with small gains as well with prices seeing a consolidative trade in their recent range. The speculative buying in beans on last week’s CFTC report was incredible, with large bets being placed on a better trade deal. Regardless, the bigger picture outlook is unchanged with record global supplies of old crop beans a bearish input while lower U.S. area is expected to provide some support to new crop. Producers should use puts to protect any unsold old crop beans.

Corn up 1-3

Beans up 3-5