Markets are trading higher overnight, with wheat seeing the best gains after pulling back yesterday while corn/beans are recovering within their recent ranges as well.

Managed funds on Wednesday were estimated as net sellers of 6k corn to push the net short out to 297k, net sellers of 4k beans to push the net short to 177k, and net sellers of 2k wheat to push the net short to 71k.

Export sales this morning for wheat came in at 274 tmt (250-500 expected), corn 485.4 tmt (100-400), n/c corn 249.1 tmt (475-1,000), beans 325.4 tmt (100-300), n/c beans 985.2 tmt (400-900), meal 102.3 tmt (0-300), n/c meal 256.5 tmt (100-350), oil 10.9 (0-10), and n/c oil -8.2 (0-10).

Corn sales were bad, but bean sales were better than expected for old and new crop. Wheat is at the bottom of expectations.

Weekly EIA data showed ethanol production off by 42k bbls from last week’s record to 1,067k bbls. Stocks were off by 206k bbls to 23,767k bbls.

Oilseed unions in Argentina have launched a strike that has halted shipments from ports that host soy processing plants.

Strategie Grains lowered its forecast for EU wheat output and exports, with French production now seen down 27% from a year ago. Strategie lowered EU corn production by 2 mmt to 60 mmt.

Nutrien bucked the trend for ag companies and reported better than expected Q2 profits, citing better potash sales in offshore markets.

The Buenos Aires Grains Exchange said frosts could hit Argentine wheat areas next week.

Corn posted a lower low, lower high, and lower close on Wednesday, with the market pulling back within its recent range. Directional indicators are neutral. Support is 3.90 and 3.98 with resistance 4.05 and 4.10.

Beans posted a lower low, lower high, and lower close Wednesday, with prices finishing at the bottom of its recent range. The lower trend is in place, with repeated tests of support suggesting a move to new lows eventually. Nov. support is 10.00 and resistance 10.30.

Corn is range-bound and is expected to stay that way ahead of Monday’s USDA report. A lot of bearishness is priced in, but the amount of old crop corn that still needs to move and unsold new crop are upside limiting factors. Look for sideways trade.

Beans are testing its recent lows with a bearish global supply outlook the major input. Beans are expected to be the weak leg moving forward with corn needing to trade higher to give beans much of a chance for gains.

Corn up 1

Beans up 1-2