Markets are trading mixed overnight with beans and wheat adding to yesterday’s losses while the corn has been able to trade mixed as recent hot weather and storms that hit major growing areas in IA and MN this past week are likely reducing the chances of a well-above trend national corn yield.

Managed funds on Tuesday were estimated as net sellers of 6k corn to push the net short out to 192k, net sellers of 3k beans to push the net short to 22k, and net sellers of 4k wheat to push the net short back out to 62k.

High temperatures and dry conditions are impacting Ukraine crops with their producers’ union reporting the corn crop could be 28 mmt (USDA30.5).

India was reported to have bought 150 tmt of soy oil from China as China’s supply glut forced their crushers to lowball offers from South America.

The American Fuel and Petrochemical Manufacturers sent a letter to the White House objecting to the increase of ethanol blends from 10% to 15%, claiming that increasing blending volumes in the coming years would add $70b in compliance costs.

Details regarding the U.S./China meetings early this week are limited, but officials for both sides have agreed to seek an extension to their 90-day tariff truce.

China’s ag ministry issued a notice to accelerate relief efforts to the dairy industry, calling to support alfalfa cultivation and implement subsidy policies for the industry.

Heavy rains are slowing winter grain harvest in parts of Ukraine with harvest pace 3 times slower than a year ago.

South Africa said their corn production would increase 17% for the 2025/26 growing season. The USDA currently estimates their production up 5%.

December corn posted a lower low, lower high, and lower close on Tuesday with prices approaching the low from early July. The market re-entered a downtrend, but the market is oversold after recent losses. Support is near 4.10 and resistance 4.30.

Beans posted a lower low, lower high, and lower close on Tuesday, but prices did finish off their intraday lows. The market is oversold after recent losses with support for Nov. at 10.00 and resistance 10.30.

Corn is sitting near recent lows this morning as storms across IA/MN and extreme heat across most of the Midwest have not yet sparked any meaningful short-covering from fund traders. With that said, the market is trading a national yield that is larger than what is likely to be the final yield as there can’t be many trouble spots while expecting national yield to be a new record by over 2 bpa. Producers should hold off on new bearish positions for now.

Beans are trading with small losses overnight with the market approaching yesterday’s lows. With managed funds still having not built a large net short in the beans like they did in corn and wheat, a wet forecast through the first half of August, and a forecast for record global supplies, there is downside risk in beans. Producers can look at option strategies to establish floors with upside.

Corn mixed

Beans down 3-4