Markets are trading lower again this morning, although the selling pressure is not quite as intense as we saw the last few days as market participants may be pumping the brakes on new bearish positions until we see the USDA numbers that will be out at 11 on Friday.

Managed funds on Tuesday were estimated as net sellers of 1k corn to push the net short out to 214k, net sellers of 3k beans to push the net short to 9k, and net sellers of 1k wheat to push the net short to 65k.

Iraq said their wheat harvest had reached 6.5 mmt this season with the govt. procuring enough to cover the country’s needs for 6 months.

Markets remain tuned in for any tariff headlines. Trump announced 50% tariffs on imported copper, which pushed copper prices sharply higher on Tuesday.

Ukraine said their combined grain and oilseed crop this year could reach 83.1 mmt with total exports seen at 50 mmt vs. 46.7 mmt a year ago.

USDA will be out on Friday with their July WASDE report. U.S. corn stocks are expected to be down modestly while bean stocks are expected to be up modestly. U.S. corn and bean yields are not expected to be adjusted.

December corn posted another lower low, lower high, and lower close on Tuesday with the market hitting new lows this morning. The market is oversold, but is on the verge of regaining the downtrend. Support for Dec. is now 4.10 and resistance 4.30.

Beans posted lower lows, lower highs, and a lower close on Tuesday with the November contract testing the bottom of the range that we’ve seen for the last 3 months.  Support is 10.10 and resistance 10.30.

Corn is testing lows again this morning with bearish weather and a lack of new good news on the trade front limiting buying interest. We are due for a bounce after the recent weakness, which new selling interest is expected to be limited ahead of Friday’s report. Be patient with sales for now.

Beans saw old crop/new crop spreads trade lower on Thursday, which pushed the August contract to recent lows while the November was able to hold within its recent range. Global stocks are forecast at record levels, which gives the market downside risk. Producers should use option strategies to cover the downside risk.

Corn down 1-2

Beans down 3-4