Markets are trading mixed this morning with inter-market spreads correcting after seeing big moves to start the week with wheat recovering relative to corn and beans after wheat hit contract lows on Monday.

Managed funds to start the week were estimated as net sellers of 5k corn to reduce the net long to 107k, net buyers of 1k beans to push the net long out to 43k, and net sellers of 6k wheat to push the net short to 99k.

Crop progress showed corn planting 24% complete (25 expected), bean planting 18% (17 expected), spring wheat 30% planted (31 expected), and wheat rated 49% g/e (47 expected).

The Trump Admin. on Monday afternoon issued an emergency waiver to allow the sale of E-15 nationwide this summer.

China’s Zhoushan port is expected to increase Brazilian imports by 48% from a year ago.

China said they would cut grain use in livestock feed to around 60% and said they would cut soymeal content by about 10% in a feed-saving plan.

The Trump Admin. said they would take measures to reduce the impact of auto tariffs, which grain traders are monitoring as well as the grain export outlook is very uncertain due to the trade war.

The U.S. and Mexico reportedly agreed on screwworm pest control measures that had potential to impact imports of Mexican feeder cattle.

Corn posted a lower high, lower low, and lower close to start the week with prices pulling back within their recent range. The market is balanced with another 5 cents downside before hitting solid support. Directional indicators are neutral with July support 4.70 and resistance 4.97.

Beans posted a lower low and lower high to start the week, but prices recovered from lows to finish with small gains. The market hit trendline resistance and is overbought after recent gains. Nearest July support is 10.40 and resistance 10.60.

Corn is seeing modest follow-through to the downside this morning as weather is generally cooperating and the crop is going in the ground smoothly. The outlook is unchanged with tightness in old crop supplies expected to be supportive on pull-backs while big new crop planted area is bearish for the December contract and beyond. Producers should look at option structures to protect new crop bushels while keeping some of the upside open.

Beans posted a bearish reversal on Friday, made a strong recovery from lows Monday to finish higher, but hit resistance overnight and are under pressure this morning.  This is a critical spot for the beans with the market running into a long-term downtrend line. The outlook for old crop beans is still bearish due to record global supplies.  With the market at resistance, make sure sales are caught up and buy puts to protect unsold old crop bushels.

Corn down 1-2

Beans down 4-6