Markets are trading mixed this morning with corn and wheat higher while beans are seeing small losses in a quiet trade.

Managed funds on Wednesday were estimated as net buyers of 3k corn to reduce the net short to 139k, net buyers of 5k beans to push the net long to 26k, and net buyers of 4k wheat to reduce the net short to 93k.

Export sales this morning for wheat came in at -49.1 tmt (-200-100), n/c wheat 444.9 tmt (300-800), corn 942.3 tmt (775-1,400), n/c corn 160.1 tmt (20-250), beans 194.3 tmt (100-500), n/c beans 3.5 tmt (0-100), meal 254.7 tmt (200-500), n/c meal 10.2 tmt (0-200), oil 10.3 (5-25), and n/c oil 1.5 (0-10).

Sales across the board were in line with expectations. New crop corn and bean sales continue to be disappointing.

Weekly EIA data showed ethanol production up 49k bbls per day to 1,105k bbls with total weekly production at 325m gallons. Stocks were up 159k bbls to 24,440k bbls.  Weekly production exceeded the necessary pace to hit the USDA’s corn usage for ethanol forecast.

Markets are still waiting for updates on a Trump/Xi meeting that was rumored early in the week.

The U.S. and India are holding discussions in India today, aiming to finalize tariff cuts in sectors such as farm and automobiles.

Corn posted a higher high and higher low on Wednesday, but the market was weak into the close to finish near the lows of the day. The market is correcting from oversold as it has consolidated in the last few days, but the downtrend remains in place. Support for July is 4.40 and resistance 4.60.

Beans posted a higher high, higher low, and higher close on Wednesday with the market trading toward the middle of the recent range before setting back into the close. The market corrected its oversold condition with support 10.40 and 10.37 with resistance 10.67.

Corn finished higher on Wednesday, but it was a disappointing day for old crop with old crop/new crops spread under pressure into the close. Managed funds have built a large net short and this is the time when the market typically adds risk premium as we head into critical summer months. Be patient with new bearish positions in the corn.

Beans looked like they were breaking out to the downside early this week. They made a nice recovery to trade back in their recent range on Tuesday and Wednesday, but they’re testing support near the bottom of the range again this morning. Beans are expensive relative to corn and wheat, and the global supply outlook is bearish. Producers should make sure sales are caught up and can use option strategies to establish floors on unsold bushels.

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Corn up 1-2

Beans down 2-3