Markets are under pressure again this morning after Trump went through with plans to put new tariffs on Canada and Mexico as well as increasing tariffs on China. Both Canada and China announced retaliatory actions with China increasing tariffs on U.S. agricultural goods.

Managed funds to start the week were estimated as net sellers of 30k corn to reduce the net long to 266k, net sellers of 14k beans to push the net short to 23k, and net sellers of 6k wheat to push the net short to 90k.

China announced retaliatory tariffs of an additional 15% on U.S. chicken, wheat, corn, and cotton, and an extra tariff of 10% on US soybeans, sorghum, pork, beef, aquatic products, fruits, vegetables, and dairy products.

Additionally, China suspended soybean import licenses of CHS, Louis Dreyfus, and Bunge owned EGT, saying that their customs had detected ergot and seed coating agent in U.S. imported soybeans.

USDA’s Risk Management Agency finalized insurance price protection levels at $4.70 for corn and $10.54 for beans. That is down from $4.66 for corn last year and $11.55 for beans.

In a move that has potential to be supportive grain markets, the Trump announced a pause of aid to Ukraine, which may reduce their planted area this spring.

Corn posted lower lows, lower highs, and a lower close to start the week and is seeing follow-through overnight. The market is very oversold after recent losses with support expected to come near 4.42 with resistance 4.57 and 4.68.

Beans posted lower lows, lower highs, and a lower close to start the week and are seeing follow-through overnight with the market dropping through support at 10.00 before stabilizing. The market is oversold after recent losses with support near 10.00 and 9.80 with resistance 10.08 and 10.22.

Corn is hitting recent lows this morning as the tariff headlines are driving more liquidation from speculative longs in the market. The move to the downside is overdone, but there are still a lot of trapped longs that are expected to be sellers on any type of rally and/or bounce. Longer term, the current pull-back can likely spark new late season export demand and U.S. old crop supplies remain relatively tight. For now, though, the market is still struggling to find buyers. Keep hedges in place.

Beans are trading lower again this morning with tariff headlines driving the selling. The global supply outlook was already bearish and the new tariffs will likely push more business to South America. Unless corn can find a low, beans are expected to stay under pressure. Producers should make sure sales are caught up and consider buying puts to protect unsold bushels.

Old crop corn down 9

New crop corn down 5

Beans down 12-14