Markets are trading mixed this morning with tariff headlines supporting the bean market while Chinese and Russian weather concerns are easing to weigh on the wheat market.
Friday’s CFTC report showed that for the week ending 5/20, managed funds were net sellers of 18k corn to push their net short out to 103, net sellers of 26k beans to reduce the net long to 13k, and net buyers of 18k wheat to reduce the net short to 109k. Selling in corn and beans was much larger than expected while the wheat position was as expected.
Managed funds on Friday were estimated as net sellers of 10k corn with the net short now estimated at 103k, net sellers of 6k beans with the net long at 18k, and net sellers of 2k wheat to push the net short to 112k.
Crop progress will be out at 3 today with the USDA scheduled to release their first corn rating of the year. With this year’s fast-planting pace, ratings are expected to be high.
Datagro estimated Brazil bean production at 172 mmt (USDA 169) and corn production at 132.7 mmt (USDA 130).
Ag Rural estimated Brazil’s 2nd crop corn harvest .9% complete.
Corn posted a lower low and lower high on Friday with the market finishing with losses. The market is overbought after the recent bounce from lows with support at 4.40 and resistance at 4.60.
Beans posted higher high and higher low on Friday but finished with losses as the market pulled back within its range. The market is balanced with support at 10.40 and resistance 10.67.
Corn is seeing a quiet start to the holiday-shortened week of trade. We are entering the time of year when the weather starts to drive price direction with seasonals supportive until later in June. Producers can use zero-cost option strategies to establish floors with upside in case weather becomes problematic.
Beans are starting the week with small gains but remain in a range-bound trade. The bean market is expected to be sensitive to any headlines related to trade/tariffs as well as headlines related to renewable diesel, butat the end of the day, the global bean supply is growing. Producers should look at option strategies to establish floors.
Corn down 1-3
Beans up 3-5