Markets are trading mixed this morning. Optimism that Japan would increase U.S. soybean imports and reports that China would exempt some U.S. goods from tariffs helped to support beans on Thursday and again for part of the night session.

Managed funds on Thursday were estimated as net buyers of 6k corn to push the net long to 115k, net buyers of 9k beans to push the net long out to 41k, and net even in the wheat to leave the net short at 103k.

Ukraine reported spring grain sowing of 2m hectares, which would be 17% from the same date a year ago. Cold weather in early April delayed planting by at lease one week.

French wheat ratings dropped 1% to 74% g/e, which is still up from 63% a year ago. They reported corn planting 50% complete vs. 42% on average.

U.S./Japan trade negotiations are ongoing with reports that Japan could increase soybean imports as part of a deal.

Brazil soy group Abiove said they expected Brazilian exports to China to increase this year due to the U.S./China trade war.

Bloomberg reported that a U.S./India trade agreement would cover 19 categories, which would include greater access for farm goods.

The EU lowered their wheat production forecast to 126.3 mmt from 126.5 previously. That is still well-above last year’s crop that was 111.7 mmt. They raised their ending stocks forecast on smaller export prospects.

Corn posted a higher high, higher low, and higher close on Thursday with the market recovering a portion of the losses from earlier in the week and then seeing some follow-through overnight. The market is balanced after the recent trade action. Support for July is at 4.70 and resistance now at 4.97.

Beans posted a higher high, higher low, and higher close on Thursday with the market pushing out of its recent consolidation area to the upside and then seeing follow-through buying overnight. The market is overbought, but was able to push through resistance at the top of the recent range. Support for July is now near 10.60 and resistance 10.80.

Corn continues to see a mixed trade with old crop contracts finding buyers on tightness in U.S. old crop supplies while new crop is struggling due to solid planting progress and expectations for big planted area. Those two factors are expected to continue to impact trade moving forward. Producers should look at strategies to protect downside risk in new crop.

Beans broke out of their recent consolidation area to the upside yesterday on optimism that the U.S. was making progress in trade negotiations with Japan and China.  This has kept speculative buyers engaged as they’ve been on an impressive buying streak since the market hit lows at the beginning of April. With that said, we still have a record crop being harvested in Brazil and global bean supplies are forecasted to be record large. Producers should make sure bean sales are caught up and buy puts to protect unsold old crop.

Old crop corn up 1, new crop down 1

Old crop beans unch, new crop up 3