Markets are trading mixed this morning with wheat able to bounce after yesterday’s losses, beans remaining under pressure in follow-through after yesterday’s sharp sell-off, and corn giving back most of yesterday’s gains. Trump signaled that he could be announcing new tariffs at some point today, which put some pressure on most markets initially.

Managed funds on Wednesday were estimated as net buyers of 10k corn to push the net long to 354k, net sellers of 9k beans to reduce the net long to 26k, and net sellers of 1k wheat to push the net short to 90k.

Export sales this morning for wheat came in at 569.6 tmt (200-600 expected), n/c wheat 36.8 tmt (0-75), corn 1,649 tmt (800-1,700), n/c corn 350.1 tmt (0-500), beans 185.5 tmt (300-800), n/c beans 24.3 tmt (0-50), meal 336.7 tmt (200-600),and oil -2.8 (0-25).

Another really good week for corn exports, a solid week for wheat, and a disappointing week for beans.

Wednesday’s EIA report showed ethanol production dropped 30k bbls per day to 1,082k bbls. Stocks were off by 720k bbls to 25,692k. Weekly production was 318m gallons, which is above the necessary pace of 306m gallons necessary to hit the USDA’s usage forecast.

Ag Resource raised their Brazil bean production forecast to172.28 mmt (USDA 169) while analyst Patria Agronegocios lowered their forecast to 165.87.

CONAB estimated the Brazil corn crop at 122.01 mmt (119.55 previously) and estimated Brazil bean production at 166.01 mmt (166.32 previously).

John Deere missed revenue estimates on their latest earnings report on subdued farm equipment demand.

The Rosario Exchange lowered their Argentine bean production forecast to 47.5 mmt (USDA 49) and lowered corn production to 46 mmt (USDA 50).

Corn posted a lower low and lower high on Wednesday, but finished with gains as we continue to see a consolidation trade in the recent price range. The 20 DMA is at 4.88 and has been an important support/resistance level. Support is 4.80 and resistance 4.87-4.88.

Beans posted a lower low, lower high, and sharply lower close on Wednesday with prices dropping through the bottom of the recent trading range and finishing at the lowest level since mid-January. The market is oversold after recent losses with support 10.00 and resistance now 10.30.

Corn continues to see a choppy trade within its large range with markets reacting to headlines. The U.S. continues to see very good demand, but farmer movement of grain is also very strong. Managed funds are sitting on a near-record long position with cash markets generally weak. Make sure sales are caught up.

Beans traded lower on Wednesday as the forecast looks conducive for Brazilian harvest and global supplies are expected to reach record levels. Beans are expected to be the weakest leg moving forward. Make sure sales are caught up.

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Corn down 2-4

Beans down 2-4