Markets are trading mixed this morning with corn and wheat seeing small gains while beans have spent the night session trading mixed to lower. It has been a relatively uneventful session, especially considering all that is going on in the world.
Managed funds on Tuesday were estimated as net sellers of 2k corn to push the net short out to 177k, net buyers of 4k beans to push the net long to 43k, and net buyers of6k wheat to reduce the net short to 87k.
Chinese industry experts have said their plan to curb the use of soymeal to reduce their dependence on soybean imports will be costly and challenging for smaller farms. They said in April they planned to reduce soymeal in hog rations to10% by 2030.
Germany’s association of farm coops said their wheat production would be up by 16.3% on the year at 21.51 mmt.
Russia’s grain-producing region of Krasnodar has declared a state of emergency in 8districts due to drought.
Cattle on feed will be out Friday with on feed expected to be 98.9% of a year ago, placements94.1%, and marketings 90.7%.
The latest tax bill proposal extended clean fuel tax credits through 2031 and reduced the value by 20% for biofuels made from non-U.S. feedstocks. The EPA report on Friday had that reduction at 50%.
Brazil said soybean exports in June would hit 14.37 mmt.
Corn posted a lower low, lower high, and lower close on Tuesday with the market finding some support near recent lows and bouncing overnight. The market is still oversold with support near 4.30 and resistance 4.46.
Beans posted a lower low and lower high on Tuesday, but was firm into the close to finish with a small gain. The market is overbought and running into resistance in the10.70-10.80 area. Support is 10.67 and resistance 10.73.
Corn had a mixed trade on Tuesday with old crop under pressure as longs are rolled out ahead of first notice day next week while new crop was able to finish higher with the market finding support near 4.35 for the 6th time since early April. The market continues to lack the catalyst to spark short-covering with managed funds not feeling any pressure on their large net short. Producers should hold off on sales in this price area, but zero-cost option strategies make sense to establish floors while leaving the upside open.
Beans posted a bearish doji on Monday, the market was able to recover from lows to finish with small gains on Tuesday, but the market is struggling to get any upside momentum going for now. The market is overbought with no major weather concerns. Last week’s EPA announcement was supportive, but it’s going to take some time for that demand to have an actual impact on balance sheets. Producers should make sure sales are caught up and use options to establish floors on unpriced beans
Corn mixed
Beans mixed