Markets are trading lower across the board this morning with wheat under the most pressure, following the lead of other global wheat markets while tariff headlines on Mexico and Canada are adding additional pressure.

Managed funds to start the week were estimated as net sellers of 20k corn to reduce the net long to 317k, net sellers of 6k beans to reduce the net long to 9k, and net sellers of 4k wheat to push the net short back out to 73k.

Soybean shipments out of Brazil are tracking well-below year ago levels with total shipments at 3.7 mmt vs. 6.6 mmt for the entire month of February last year.

The American Petroleum Institute pressed for a nationwide policy on higher ethanol blends after the Trump Admin. said on Friday that they would move ahead with expanded sales in certain Midwest states.

The EU crop monitoring service MARS said grain crops in Europe were mostly in good condition, but there were risks of excess moisture hurting crops in France and dryness in Eastern Europe.

Trump said tariffs would go in place on imports from Mexico and Canada, saying “tariffs are going forward on time, on schedule”.

Argentina said they were loosening safety regulations on river shipments, which could allow a 7% increase in cargo moved along the Parana-Paraguay waterway.

Corn posted a lower low, lower high, and sharply lower close to start the week with the market seeing more follow-through overnight. The market is oversold after recent losses with another 5-10 cents downside risk before we find good support. May support is 4.90 and 4.85 with resistance at 5.00 and 5.04.

Beans posted a lower low, lower high, and lower close to start the week with modest follow-through selling overnight with prices dropping to recent lows this morning.  Directional indicators are balanced, but there is more room to trade lower before the market will be oversold. Support for May is 10.40 and 10.30 with resistance 10.60.

Corn is under pressure again this morning as the correction from last week’s highs continues with improved weather in Argentina, renewed tariff concerns on our biggest corn buyer (Mexico), and pre-first notice day selling all weighing. With managed funds still sitting on an historically large net short, the correction has room to continue.  Producers should make sure sales are caught up and buy puts to protect additional bushels.

Beans dropped to recent lows to start the week as improved weather for Argentina, Brazil harvest pressure, and a bearish global supply outlook all weighed. Beans have the worst fundamentals moving forward and are expected to lose value relative to corn and wheat. Make sure sales are caught up and buy puts to cover additional unsold bushels.

Corn down 3-4

Beans down 1