Markets are trading mixed overnight with corn seeing more follow-through to the downside as a lack of new bullish news and tariff concerns are driving more fund liquidation. Wheat attempted to bounce, but has leaked lower to trade near unchanged while spillover selling from corn is pulling beans lower.

Friday’s CFTC report showed that for the week ending 2/25/25, managed funds were net sellers of 16k corn to reduce the net long to 337k, net seller of 9k beans to reduce the net long to 8k, and net sellers of 6k wheat to push the net short out to 68k. The selling in corn and wheat was quite a bit less than expected while the bean position was in line with estimates.

Managed funds on Friday were estimated as net sellers of 20k corn to reduce the net long to 296k, net sellers of 9k beans to put the net position at short 9k, and net sellers of 4k wheat to push the net short out to 84k.

China based Global Times reported that U.S. agriculture will be a target as it prepares countermeasures against fresh U.S. import tariffs that are expected to go into effect this week.

The U.S.$ is starting the week sharply lower, which is a welcome sign for exporters with bean and wheat prices feeling some support from that input.

The EPA said on Friday that they would delay an action by one year to expand sales of year-round ethanol sales in South Dakota and Ohio.

Australia raised their wheat production forecast to 34.1 mmt (USDA 32) on better than expected yields.

Russia estimated wheat exports in February at 1.9 mmt, which was down sharply from 4.1 mmt a year ago.

USDA Jan. soy crush will be out this afternoon and is expected to have been a record 211.1 mbu.

China said they would strengthen regulation of grain purchases and storage to prevent drastic fluctuations in grain prices.

Brazil said they were considering cutting import taxes of ethanol, which would open the door for U.S. exports into the country.

Corn entered the downtrend on Friday and has dropped to the consolidation area that we saw in early January. The market is oversold after recent losses. May has support from 4.60-4.65 and resistance 4.85.

Beans posted lower lows, lower highs, and a new recent low close on Friday with the market breaking out of its recent range to the downside. The market is oversold, but has room to trade lower before finding good support. May support is 10.00 and resistance 10.30.

Corn is starting the week under pressure with fund liquidation driving the weakness. Not that much has changed from a fundamental standpoint, but money flow is driving the trade right now and the speculative long in the market is still large. With the market dropping to the consolidation area that we saw in early January, the market can likely stabilize in this price area. Hold off on new sales after the recent drop.

Beans were pulled lower by the corn market on Friday with prices breaking out of their recent consolidation area to the downside. With beans having the most bearish supply fundamentals and weak technical action, look for more downside in the near term. Producers should make sure sales are caught up and buy puts to protect unsold bushels.

Corn down 2-4

Beans down 2-4