Markets are trading mixed to higher this morning with beans catching the best bid as strength in the Brazilian Real relative to the U.S.$ is supporting that market as it makes Brazilian bean prices higher.

Managed funds on Wednesday were estimated as net buyers of 6k corn to push the net long back out to 257k, net buyers of 8k beans to reduce the net short to 23k, and net buyers of 5k wheat to reduce the net short to 92k.

Ho-hum sales with everything as expected.

Weekly EIA data showed ethanol production up by 12k bbls per day to 1,093k with stocks off by 282k bbls to 27,289k bbls. Weekly production of 321m was above the ~305m necessary to hit the USDA’s corn usage forecast.

COFCO said that China was on track for another bumper wheat crop due to favorable weather for its winter crop. China already owns about half of the global wheat crop, but they said this wheat crop would be absorbed by the feed industry and government purchases.

Celeres lowered their Brazil bean production forecast to171.6 mmt from 174 mmt previously on hot/dry weather as the crop finished in southern areas. The USDA currently estimates the Brazil crop at 169 mmt.

The U.S.$ is seeing further losses this morning, which thus far soybeans have been the main ag market to benefit.

Corn traded an inside day on Wednesday with prices probing lower but finishing higher while remaining within Tuesday’s price range. The market had gotten to be very oversold and has seen a small bounce as that corrects. Support today is 4.51 and 4.43 with resistance 4.63-4.65.

Beans posted a higher high, higher low, and higher close with the market gapping open higher overnight but struggling to see much in the way of follow-through. The market is correcting from oversold, but the downtrend remains in place. Support for May is 10.00 and 10.08 with resistance 10.20 and 10.30.

Corn was able to see a small recovery yesterday as the price drop hit extreme levels and dip buyers stepped in on optimism that tariffs on Mexico and Canada may be resolved sooner than later. There is still a very large speculative long in the corn market that is at risk of further liquidation on any bearish trade developments. Producers should make sure sales are caught up.

Beans saw a nice recovery yesterday and are seeing more buying overnight with much of the strength related to the move in the Brazilian Real vs. the U.S.$ which has pushed Brazil bean prices to their highest since last fall. Brazilian harvest is ongoing, which is expected to be an upside limiting factor and U.S./China trade relations are still very uncertain. With global supplies on track to hit record levels, producers should make sure sales are caught up.

Corn down 1-3

Beans up 1-3