Markets are trading mixed overnight with bean oil, which is sharply lower again on biofuel blending level concerns, weighing on the beans while corn and wheat are trading near unchanged.

Managed funds on Thursday were estimated as net even in the corn to leave the net position at even, net sellers of 20k beans to reduce the net long to 36k, and net buyers of 4k wheat to reduce the net short to 117k.

NOPA crush for April came in at 190.226 mbu (184.6 expected). Soy oil stocks were 1.527b lbs, (1.412 expected). That was down 1.832 from a year ago but up from 1.498 last month. 

The KS wheat tour estimated their state yield at 53 bpa, which is above the USDA’s forecast of 50 bpa, and well-above last year’s tour estimate of 46.5 bpa.

Soybean oil came under heavy pressure for Thursday’s trade when reports that the biofuel mandate would come in lower than many had previously expected.  Additionally, the new EPA seemed more willing to accept hardship waivers from small fuel refiners, potentially hurting ethanol demand.

China issued a warning today for hot/dry winds next week that could damage wheat in major producing areas.

Ukraine reported their spring grain sowing was 87% complete, which was 4.95m ha vs. 5.1m at the same time a year ago.

Corn posted a higher high, higher low, and higher close on Thursday as the market continued to correct from oversold. The downtrend is still in place with support 4.40 and resistance 4.60.

Beans gapped open lower Wednesday night and posted a lower low, lower high, and sharply lower close on Thursday. There is more room to trade lower before the market will be oversold with next strong support showing up near 10.40. Resistance is now 10.60.

Corn held together well on Thursday with old crop/new crop spreads trading higher as the market re-focused on old crop tightness and alack of farmer selling after recent losses. Producers should roll down puts to lock in equity and consider re-ownership strategies to position for a potential summer weather rally.

Beans flushed to the downside on Thursday, following a sharply lower bean oil market. Bean oil had been a major contributor to the bean strength that we had seen since finding a low in early April and when the EPA news spooked the soy oil market, beans followed suit. With bean oil sharply lower again this morning, beans will likely struggle to mount much of a recovery until oil can find a low. Producers can still buy puts on beans.

Corn mixed

Beans down 1-4