Markets are trading lower across the board this morning with corn seeing follow-through selling on a lack of widespread weather concerns and rumors that exports may be slowing. Beans initially got a boost from news that a panel of federal judges had blocked most of the tariffs that Trump announced on Liberation Day, but the market has given those gains back. Equity markets are trading sharply higher on the tariff news.

Managed funds on Wednesday were estimated as net sellers of 15k corn to push the net short out to 121k, net sellers of 10k beans to drop the net long to 10k, and net buyers of 1k wheat to reduce the net short to 118k.

Export sales are delayed until tomorrow due to Memorial Day. Weekly EIA data will be out mid-morning with ethanol production expected to tick higher again this week.

The U.S.$ traded higher on the tariff halt news.

Argentine growers are looking forward to cold and dry weather to help dry out fields and allow soybean harvest to pick up again. Their harvest is estimated at 74.3% complete.

The USDA’s chief veterinarian said the U.S. would likely resume imports of Mexican cattle by year-end.

Ukraine said they expected to have a new grain export agreement with the EU by the end of July.

Corn posted lower lows, lower highs, and sharply lower closes on Wednesday with the market dropping back into the lower end of its recent range. There is more room to trade lower before the market will be oversold. Support for July is 4.40 and resistance is near 4.60.

Beans posted lower lows, lower highs, and lower closes on Wednesday with the market dropping to the bottom of the recent range. The market is getting to be a bit oversold and is approaching support. Support is 10.40 and resistance 10.67.

Corn has dropped to the lower end of its recent trading range as managed funds have re-engaged as sellers. Brazilian exports are expected to pick up as their 2nd crop harvest progresses and U.S. weather is not overly concerning on a national level.  It’s a little late to sell and we are in a time when we often see weather-driven seasonal strength. Producers can look at option strategies that establish floors while leaving the upside open.

Beans tried to move higher in early trade last night but have come under pressure this morning with bean oil leading the move. With the U.S. crop in okay shape on a national level, Brazil continuing to export old crop beans, and global bean supplies forecast record large, there is downside risk from here. Producers should buy puts to protect old and new crop beans.

Corn down 2-4

Beans down 4-5