Markets are seeing a mixed trade to start the week with escalating tensions between Ukraine and Russia over the weekend supporting the wheat while comments from China about U.S./China trade are weighing on the beans.

Friday’s CFTC report showed that for the week ending 5/27, managed funds were net buyers of 2k corn to reduce the net short to 101k, net buyers of 37k beans to push the net long to 23k, and net buyers of 8k wheat to reduce the net short to 101k. The corn position was near expectations while the buying in wheat and beans were greater than expected.

Managed funds on Friday were estimated as net sellers of 6k corn to push the net short to 134k, net sellers of 6k beans to reduce the net long to 23k, and net buyers of 1k wheat to reduce the net short to 97k.

Monthly soybean crush for April will be out after the close and is expected to show crush was 201.8 mbu, which would be down from 206.6 mbu a yearago.

Corn posted another lower low, lower high, and lower close to finish the month of June with prices dropping to the lower end of their recent range. The market is approaching oversold levels after last week’s losses. Support for July is 4.40 and resistance 4.60.

Beans traded an inside day on Friday, but the market was under pressure into the close to see large losses with prices finishing at the bottom of the recent range. The market dropped through support overnight at 10.40 and has struggled to bounce from lows. The market is oversold with next support at 10.30 and resistance now at 10.40.

Corn is seeing small gains to start the month of June with generally favorable weather weighing while a large fund short, supportive seasonals, and a higher wheat market are providing some support. There is always the possibility that weather cooperates the entire growing season, but with managed funds already aggressively short and old crop supplies in the U.S. tight, this doesn’t seem like a good time to be overly bearish corn. Use option strategies that allow participation in a move to the upside at this time.

Beans were under pressure into the close last week as U.S./China trade uncertainty and record global bean supplies are bearish inputs. U.S. area may end up coming in low, but the global supply outlook is for another record next year driven by expectations for another record Brazil crop. With global supplies record large and managed funds still long, beans have downside risk. Use options to establish floor prices.

Corn up 1-2

Beans down 5-6