Markets are trading mixed overnight with beans and corn giving back part of yesterday’s gains, but then recovering to trade near unchanged while wheat is adding to the strong start to the week. Trump proposed a new 10% tariff on China yesterday afternoon/early evening, which appeared to weigh on the bean market in early trade last night.

Managed funds to start the short week were estimated as net buyers of 15k corn to push the net long to 325k, net buyers of 30k beans to push the net long to 60k, and net buyers of 10k wheat to reduce the net short to 89k.

Weekly EIA data will be delayed until tomorrow due to the MLK holiday.

China has reportedly stopped receiving Brazilian soybean shipments from five entities after cargoes didn’t meet phytosanitary requirements.

Headlines are expected to have a greater impact on the market moving forward. Comments regarding tariffs have the greatest potential to lead intraday price spikes with prices rallying on Tuesday after new tariffs were not imposed, but then pulling back overnight when 10% Chinese tariffs were floated because fentanyl is being sent from China to the U.S. via Mexico and Canada.

China state media reported that China would vigorously implement the national soybean and oilseed production capacity enhancement programme, citing a “comprehensive rural revitalization” plan issued by the government.

Egypt reportedly made a significant purchase of Russian wheat with shipment expected this month. Total volumes were not given.

The EU reported soft wheat exports since the start of the 2024/25 marketing year were down 36% from a year ago.

Corn posted a higher high, higher low, and higher close to start the week as the uptrend continued. The market is overbought after recent gains. Resistance is 4.90 and support 4.80 then 4.60.

Beans gapped open higher on Monday night and never looked back with prices finishing sharply higher and at the highest level since October. The market has room to trade higher before it will be overbought. Support is 10.55 and 10.25 with resistance 10.74 and 11.00.

Corn surged to new highs to start the shortened week with a softer stance on tariffs by Trump cited as a reason for the buying. The trend is higher and funds are engaged as buyers, but we are hitting upside resistance levels and a steady flow of cash corn continues to flow into the market. Make sure sales are caught up after recent gains.

Beans surged to start the week as new day-1 tariffs didn’t go into effect and China made comments that they hoped U.S./China trade would improve in the future. The market spiked lower on the open last night following comments from Trump that there would be a new 10% tariff on China, but the market has recovered those losses this morning. The global supply and demand outlook is still bearish due to the big Brazilian crop. Headlines are going to drive wild price swings moving forward, which increases the importance of having target offers in place. Right now, the bean outlook is still for growing global supplies, regardless of any intraday announcements that drive a flurry of buying or selling. Producers can look at puts to cover unsold bushels.

Corn down 1

Beans down 1