Markets are trading mixed to lower across the board this morning with rains hitting Argentina overnight and markets seeing follow-through selling after closing weak yesterday.

Managed funds on report day were estimated as net sellers of 20k corn to reduce the net long to 342k, net sellers of 7k beans to reduce the net long to 35k, and net sellers of 2k wheat to push the net short out to 89k.

The biggest surprises on yesterday’s reports were the larger than expected drop in Argentine bean production and the 3mmt reduction in Chinese corn imports. Beyond that, the USDA was pretty conservative with adjustments, leaving the U.S. corn and bean balance sheets essentially unchanged.

Corn posted a higher high and higher low on report day, but finished at the bottom of the day’s range and took out that low overnight. The market is getting to be a bit oversold after recent losses with support 4.80 and resistance 4.87.

Beans posted a bearish outside down day on Tuesday and is seeing follow-through selling this morning. The market is approaching support at 10.30 and is oversold after recent losses. Resistance is at 10.50.

Corn traded lower after the USDA failed to provide bullish enough numbers to keep speculative buyers engaged on yesterday’s report. Demand is strong and the global supply held by major exporters is relatively tight, but managed funds are near-record long and the cash market is saying itis well-supplied for now. Look for a bigger pull-back in corn. Producers should make sure sales are caught up and look at puts to protect additional bushels.

Beans closed on their lows yesterday and are seeing follow-through selling overnight. The global bean supply outlook remains bearish. Unless corn is trading higher, beans are expected to struggle and to be the weak leg moving forward. Make sure sales are caught up and buy puts to protect additional unsold bushels.

‍

Corn down 1-2

Beans down 8-9