Markets are trading mixed to higher overnight in a less eventful trade than we have been seeing the last few sessions.  

Managed funds on Tuesday were estimated as net buyers of 12k corn to push the net long out to 267k, net buyers of 25k beans to push the net long to 102k, and net buyers of 5k wheat to reduce the net short to 94k.

China has reportedly delayed imports of up to 600 tmt of wheat, mostly from Australia with some of the previously booked sales offered to other buyers. China is currently sitting on 51.6% of the global wheat carryout.

The U.S. has stopped purchases of foreign food aid programs since the beginning of the review of federal aid spending. Commodities primarily impacted are wheat and soybeans that are typically purchased for poor countries.

Bunge Q4 profit disappointed on lower than expected oilseed processing margins.

Ukraine moisture concerns are growing with soil moisture the lowest it has been in 7 growing seasons.

Corn posted a higher high, higher low, and higher close on Tuesday with the market hitting new highs overnight. The uptrend has ended, but if today’s gains hold, it will be back. The market is overbought after recent gains with support at 4.88 and resistance 4.95-5.00.

Beans posted a higher high, higher low, and new recent high close Tuesday with the market approaching resistance overnight near 10.80 before pulling back. The market entered and uptrend, but is overbought after recent gains. Support is 10.50 and 10.30 with resistance 10.80.

Corn is hitting new highs overnight as ongoing dryness in Argentina, strong export demand for U.S. corn, and no new tariffs (for now) on Mexico are keeping fund buyers engaged.  We are still in a headline driven market, but the bulls are in control with the recent dips finding good buyers. With that said, we have a near record net long held by speculators and it’s anyone’s guess when new headlines will hit the market. Producers should make sure sales are caught up and use puts to protect additional unsold bushels.

Beans hit new recent highs overnight before pulling back as speculative funds have been active buyers in that market as the Brazilian Real continues to gain on the U.S.$. Brazil is still expected to harvest a record bean crop, but harvest has been slow to ramp up thus far due to wet weather. Global bean supplies are projected to hit record levels. Producers should make sure sales are caught up and look at puts to protect additional unsold bushels.

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Corn up 1-2

Beans down 4-6

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