Markets are trading lower this morning after a choppy night session that has produced a 2-sided trade.

Managed funds on Tuesday were estimated as sellers of 6k corn to reduce the net long to 111k, net sellers of 3k beans to push the net short out to 19k, and net sellers of 2k wheat to push the net short out to 72k.

Russia agreed to pause attacks on Ukraine energy infrastructure during the Trump-Putin phone call yesterday, but there were reports that Russia had launched new attacks on Ukraine shortly after.

Outside markets will be following developments from the Fed meeting today with an announcement on overnight lending rates due at 1 p.m. central. The market is expecting the Fed to leave rates unchanged at 4.25-4.5%.

Commodity analyst S&P Global estimated U.S. corn area at 94.3m, which is just above the outlook forum estimate of 94m. They estimated bean area at 83.3m.

The USDA announced yesterday that they would begin distributing economic aid for low commodity prices.

Louis Dreyfus reported a drop in annual profit with lower commodity prices weighing on earnings.

Turkey announced a 1 mmt import quota on feed corn, which would qualify for lower import tariffs.

Ukraine is expected to sow 5.7m ha of spring grains this year. An extremely dry winter has raised moisture concerns there, but area is not expected to drop yet.

Corn posted a lower low, lower high, and lower close on Tuesday with the market approaching yesterday’s lows and trendline support near 4.55 this morning. The market is oversold after recent losses, but directional indicators are still on the bearish side. Support is 4.55 and 4.45 with resistance 4.66 and 4.75.

Beans traded an inside day on Tuesday, but the market failed to hold above trendline resistance and finished lower. The market is back below that downtrend line again this morning with a lot of room to trade lower before the market would be oversold. Support for May is 10.00 and resistance 10.13.

Corn is testing the lows that we’ve seen since the March crop report again this morning as there is not a catalyst right now to make funds re-engage as buyers. South American harvest is ongoing, and a weaker technical picture remains in place. Additionally, the government financial support that was confirmed yesterday will help to ensure acres are large and also may spur some grain movement. Producers should make sure sales are caught up and consider option strategies to protect against a large acre forecast on the report at the end of the month.

Beans have tested trendline resistance the last 3 days and each time have run into selling. The global supply outlook remains bearish with South American harvest pressure expected to continue to weigh on old crop prices. Make sure sales are caught up and use puts to protect additional unsold bushels.

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Corn down 2-3

Beans down 3-4