Markets are trading mixed this morning with corn and beans recovering losses that were seen in early trade last night while wheat is sustaining small losses.

Export sales are delayed until tomorrow due to the MLK holiday.

Managed funds on Wednesday were estimated as net sellers of 7k corn to reduce the net long to 318k, net sellers of 6k beans to reduce the net long to 54k, and net sellers of 2k wheat to push the net short out to 91k.

Bean oil came under heavy pressure on Wednesday as concerns arose about the future of the renewable diesel industry and what it will mean for soy oil demand. At the same time, there was some encouraging language in one of Trump’s EO that opened the door to year-round E-15, which would be supportive corn.

More details have been released after China stopped receiving beans from 5 Brazilian exporters due to quality concerns. Units of Cargill, ADM, and Olam were included, who between the 3, account for around 30% of Brazilian bean exports.

ADM declared force majeure along U.S. Gulf terminals as the winter storm has made it impossible to load grain vessels in S. Louisiana.

The U.S.$ bounced from lows yesterday but has seen a sizable pullback after hitting multi-month highs on inauguration day. 

Corn posted a bearish reversal from highs on Wednesday with markets hitting recent highs and then reversing to close in the lower end of the day’s range. The uptrend is still in place, but the market is overbought with potential for a larger correction within the uptrend. Resistance is 4.90 and support 4.80 then 4.60.

Beans posted a bearish reversal on Wednesday with prices hitting new recent highs and then reversing to finish in the lower end of yesterday’s range. The market is overbought with room to correct within the recent range. Support is 10.55 and 10.25 with resistance 10.74 and 11.00.

Corn reversed from highs yesterday with cash grain movement weighing after prices hit 8-month highs and the market ran into resistance in the 4.90-5.00 area. There is a lot of headline risk in the market right now and managed funds have been on an unprecedented streak of buying over the last several months. Producers should make sure sales are caught up and consider using options to protect unsold bushels.

Beans reversed from highs yesterday with bean oil leading the move to the downside. Similar to corn, managed funds have built up a sizable long after an unprecedented streak of buying. There is a lot of headline risk, and the global bean supply outlook is still bearish. With calendar spreads collapsing yesterday, there is downside risk in the near-term. Producers should make sure sales are caught up and look at options to protect unsold bushels.

Corn up 1

Beans up 1-3