Markets are trading mixed this morning with wheat catching a bounce, beans feeling a downward pull from Canadian canola markets that are trading limit down, and corn sitting between the two. Equity markets are under pressure to start the week after seeing a large recovery from recent lows on Friday as the U.S. economic outlook continue to be uncertain.

Friday’s CFTC report showed that managed funds on the week ending March 4 were net sellers of 118k corn to reduce the net long to220k, net sellers of 44k beans to push the net position to short 35k, and net sellers of 15k wheat to push the net short out to 82k. The selling in corn was quite a bit greater than expected while selling in wheat was less than expected. Bean positions were in line with expectations.

Managed funds on Friday were estimated as net buyers of 10k corn to push the net long back out to 249k, net sellers of 1k beans to push the net short to 16k, and net sellers of 3k wheat to push the net short to 77k.

China announced 100% tariffs on Canadian agriculture products over the weekend in retaliation for Canadian tariffs on Chinese EV imports. This has canola futures trading limit down, which is putting some pressure on bean oil prices.

The U.S.$ is trading near recent lows to start the week as we continue to see volatile moves in currency markets.

Corn traded an inside day on Friday but was able to post solid gains with more follow-through overnight. The market is getting to be a bit overbought on the current bounce with the downtrend still in place. Support for May corn is near 4.40 and resistance 4.73.

Beans traded an inside day on Friday and settled with small losses. The market is getting to be a bit overbought after the recent bounce. Support for May is 10.00 and resistance 10.30.

Corn is continuing its bounce from recent lows to start the week as we saw a huge week of fund liquidation and selling pressure has eased. Brazil weather is trending drier, and the U.S. supply outlook is still relatively tight. With that said, managed funds are still sitting on a large net long position with global economic concerns continuing to elevate. With the market still in a technical downtrend, producers should make sure sales are caught up and consider puts for extra downside protection.

Beans are under modest pressure to start the week with a sharply lower Canadian canola market weighing on bean oil, which is then putting pressure on beans. The market has seen a sizable bounce from last week’s low, but we still have South American beans flowing into the pipeline, which is expected to weigh on U.S. demand in the coming months.  Producers should make sure sales are caught up and buy puts to protect unsold bushels.

Corn up 1-4

Beans mixed