Markets are catching a strong bid overnight with corn, beans, and wheat all making a run at the gaps that were left on the charts last Thursday night when Argentina said they would lower export taxes on grains and soybean products.

Managed funds on Tuesday were estimated as net buyers of 9k corn to push the net long out to 313k, net buyers of 3k beans to push the net long to 35k, and net buyers of 5k wheat to reduce the net short to 99k.

The EU reported that soft wheat exports thus far through the marketing year were down 37% from a year earlier as their short wheat crop has cut available exportable supplies.

The market is anxiously anticipating any tariff developments with potential for 25% tariffs on imports from Canada and Mexico to go into effect this weekend. Mexico is the number one destination for U.S. corn and major importer of beans while Canada is a major importer of US ethanol.

Ukraine’s agriculture business association estimated their 2024/25 corn crop at 26 mmt (USDA 26.5) with exports at 22.1 mmt (USDA 23).

Corn posted a higher high, higher low, and higher close on Tuesday with prices filling the gap that was left on Sunday night before easing into the close. The market is sharply higher again this morning with prices filling the gap from last Thursday night. We are in the upper end of the consolidation zone that we’ve seen the last week with resistance at 4.95 and support 4.77-4.80.

Beans traded an inside day on Tuesday with prices finishing unchanged. The market has filled the gap that was left on Sunday night with the market bouncing within its recent range. Support for March is 10.30 and resistance 10.50-10.55.

Corn is working into the top of the recent consolidation area this morning with strong demand and a drier Argentine forecast supporting prices while potential for new tariffs this weekend may be preventing a move to new highs as managed funds are already loaded up with a near-record net long in the corn. The trend is higher, but there is a lot of headline risk in the market regarding trade. Producers should make sure sales are caught up and use puts to cover additional unsold bushels.

Beans are following the corn market higher this morning, although they are struggling to keep pace on account of impending harvest in Brazil. The global bean outlook remains bearish with global supplies projected at record levels. Producers should make sure sales are caught up and use puts on additional unsold bushels.

Corn up 3-6

Beans up 6-7