Markets are trading mixed this morning with buyers stepping in at the conclusion of a meeting between U.S. and Russian representatives regarding a path to end the Russian invasion of Ukraine.

Friday’s CFTC report showed that managed funds on the week ending 2/11 were net sellers of 31k corn to drop the net long to 332k, net sellers of 29k beans to reduce the net long to 28k, and net buyers of 8k wheat to reduce the net short to 83k. The selling in corn and beans was larger than expected while the buying in wheat was larger than expected.

Managed funds on Friday were estimated as buyers of 10k corn to push the net long out to 359k, net buyers of 5k beans to push the net long to 26k, and net buyers of 10k wheat to reduce the net short to 72k.

There were new tariff headlines over the weekend with a lot of uncertainty remaining about what tariffs will actually go into place and on who. The U.S.$ traded lower, which would be supportive prices.

The EU is reportedly drafting plans to impose tougher restrictions on imported crops that are treated with pesticides that are banned in Europe.

The Rosario grains exchange said weekend rains in Argentina were crucial in preventing further losses in the 2024/25 soybean and corn cycle. They estimated bean production at 47.5 mmt (USDA 49) and corn 46 mmt (USDA 50).

Ag Rural reported Brazil bean harvest at 23% complete, which is behind 32% a year ago. 2nd crop corn planting continues to lag the pace from a year ago due to the slow bean harvest.

Corn posted a higher high, higher low, and new high close on Friday with prices approaching the $5 level before pulling back. The market is overbought after recent gains with resistance at 5.00 and support 4.88.

Beans posted a higher high, higher low, and higher close on Friday, but prices pulled back from intraday highs to close in the lower end of the day’s range with the market starting lower overnight and testing support below 10.30 before bouncing. The market eased the oversold condition with support at 10.30 and resistance 10.37.

Corn is testing highs to start the week as the market appears ready to make a run at the $5 level to fill offers there as well as hit buy stops that are likely resting. The global supply outlook continues to get tighter, which is keeping buyers engaged. With managed funds still sitting on an historically large net long and cash markets suggesting buyers are getting all the physical corn they need, producers should make sure sales are caught up and look at puts to protect additional bushels.

Beans struggled to keep pace with the corn and wheat gains on Friday as it looked like beans were the short leg in intermarket spreads. Beans still have the worst outlook from here with global supplies expected to reach record levels this year as the massive Brazilian crop hits the global market. Look for beans to underperform the corn and wheat. Make sure sales are caught up and buy puts to protect unsold bushels.

Corn up 1-3

Beans up 2-3