Markets are trading with modest gains this morning with corn and beans recovering a portion of yesterday’s losses while wheat sits just above unchanged on the day.

Export sales are delayed until tomorrow due to the President’s Day Holiday.

Managed funds on Wednesday were estimated as net sellers of 8k corn to reduce the net long to 361k, net sellers of 5k beans to reduce the net long to 24k, and net sellers of 6k wheat to push the net short back out to 75k.

Trump eased tariff concerns late yesterday when he said a trade deal with China was possible and that he expected Xi to visit the U.S.

U.S. oil and biofuel groups joined forces to pressure the Trump administration to increase volumes of renewable fuels that must be blended in 2026 and beyond.

Ukraine’s farm minister said their 2024/25 exportable grain surplus would be 41.9 mmt, which would include 16.2 mmt of wheat, 22.1 tmt of corn, and 2.8 mmt of barley.

Agroconsult lowered their Brazil bean production forecast by 1.1 mmt to 171.3 mmt (USDA 169).

Corn posted a higher high and higher low on Wednesday, but the market pulled back after hitting recent highs to close with losses. The market is overbought again with resistance showing up at the highs from last May. Support is 4.87 and resistance 5.05.

Beans posted a higher high and higher low on Wednesday, but reversed early session gains to finish with sizable losses. Most indicators are balanced with potential for a large move from this price area. Support is 10.30 and resistance 10.47.

Corn hit new highs yesterday, but then reversed to finish lower. Export demand remains robust, but calendar spreads have weakened and cash markets have been under pressure for a while as the market is getting all the corn it needs to meet near-term demand. With funds still sitting on an historically large net long, producers should make sure sales are caught up.

Beans are higher overnight as the U.S.$ remains under pressure and the Brazilian Real is relatively strong. Beans still have the weakest fundamental outlook and are expected to struggle unless the corn market is trading higher and pulling them along. Use beans as the short leg in intermarket spreads.

Corn up 2-3

Beans up 4-7