Markets are trading higher across the board this morning with corn seeing nice follow-through after posting a bullish reversal from lows on Tuesday with old crop corn leading the way. 

Managed funds on Tuesday were estimated as net buyers of 9k corn to reduce the net short to152k, net buyers of 2k beans to push the net long to 24k, and net sellers of 3kwheat to push the net short out to 100k.

The Russian wheat growing area of Rostov declared a state of agricultural emergency in some areas due to drought.

U.S. and China trade reps have agreed on a framework to move forward with better trade relations. President Trump said this morning that a trade deal with China was done, subject to Xi’s approval.

Syngenta said they expected a minimal impact from tariffs imposed on their business in 2025.

Corn posted a bullish reversal from lows on Tuesday with the market seeing follow-through buying this morning to push prices to the upper end of the consolidation area we’ve seen over the last week. The downtrend is still in place, but there is plenty of room for the market to bounce as it corrects from oversold. Support is 4.34 and resistance 4.46.

Beans posted a higher high, higher low, and higher close on Tuesday, but the market did pullback from intraday highs to close in the lower end of the day’s range. The market is getting to be overbought after recent gains with support for July at10.33 and resistance 10.62.

Corn is seeing nice follow-through to the upside this morning with calendar spreads finding a low yesterday morning and rallying with flat price following along. The extended forecasts aren’t as wet as they previously had been and the market had taken pretty much all the risk premium out of prices over the last several weeks. With seasonals supportive for another few weeks, a bigger price recovery seems possible. Be patient with sales and keep an eye on the old/new spreads as they will likely top out before the flat price recovery does.

Beans are continuing their grind to the upper end of their recent trading range this morning with optimism on U.S./China trade relations providing some support. Beans have become relatively expensive to corn and wheat with some selling pressure possible from inter-market spreaders if they start to cover shorts in corn and wheat. With a bearish global supply outlook regardless of whether a trade deal is made or not, there is downside risk. Producers should make sure sales are caught up and look at puts for additional downside protection.

Corn up 3-5

Beans up 3-5

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