Ag markets are starting the week nearly unchanged after the sell-off in global equity markets has at least somewhat stabilized relative to how they started the trade last night. Outside markets are still lower, but the intensification of the sell-off has eased.

Friday’s CFTC report showed that for the week ending 4/1, managed funds were net sellers of 18k corn to reduce the net long to 57k, net buyers of 13k beans to reduce the net short to 30k, and net sellers of 19k wheat to push the net short out to 112k. Across the board, fund selling was greater than expected.

Funds on Friday were estimated as net buyers of 1k corn to push the net long to 51k, net sellers of 20k beans to push the net short to 69k, and net sellers of 4k wheat to push the net short to 116k.

The U.S.$ is under pressure to start the week, but it has seen a large bounce from last week’s lows.

The outlook for the biofuel industry continues to be somewhat encouraging with an oil and biofuel coalition meeting with the EPA to request increased biofuel blending quotas. They settled on leaving the corn-based ethanol blending mandate at 15 billion gallons, but they hope to raise the biomass diesel mandate by over 2 billion gallons to 5.5-5.75 billion.

Indigenous protests in Brazil have disrupted shipping routes in recent days at the Amazon river port of Miritituba.

Argentine crusher Vicentin shut down their plants due to lack of contracts as the company works through their bankruptcy.

Corn posted another higher high, higher low, and higher close on Friday with prices making a big recovery from lows for the 2nd day in a row. The market is well-balanced with support below the market at 4.42 and resistance 4.68.

Beans posted a lower low, lower high, and sharply lower close on Friday with the market re-entering the downtrend. The market is getting to be a bit oversold after recent losses with May support 9.50-9.60 and resistance 9.80.

Corn is set for a quiet start to the week as the market has proven to be extremely resilient in the face of the trade war as tightness of old crop supplies in the U.S. and globally are keeping buyers engaged. With that said, there is a lot of speculative length in the market with new crop balance sheets expected to be much more comfortable. With the extreme uncertainty we are seeing right now, producers should keep looking to establish floors on new crop production.

Beans spiked to new lows overnight before seeing a sizable bounce and now trading near unchanged this morning. The outlook for old crop beans continues to be negative with record South American supplies expected to limit buying interest for the next month. After that, the new crop balance sheets in the U.S. are expected to be tight. Producers should use puts to protect unsold old crop bushels while being patient with new crop sales.

Corn down 1-3

Beans steady to up 2