Markets are trading mixed this morning with beans higher ahead of a meeting in Switzerland between Scott Bessent and Chinese trade representatives this weekend and ahead of a U.S./UK trade deal that is expected to be announced this morning. 

Managed funds on Wednesday were estimated as net sellers of 8k corn to reduce the net long to 32k, net sellers of 1k beans top reduce the net long to 26k, and net sellers of 1k wheat to push the net short out to 114k.

Weekly EIA data showed ethanol production off by 20k bbls per day to 1,020k bbls. Stocks were off by 198k bbls to 25,191k. Weekly production of 300 million gallons was less than necessary to hit the USDA forecast.

Export sales this morning for wheat came in at 69.7 tmt (-100-150 expected), n/c wheat 493 tmt (200-400), corn 1,662.5 tmt (700-1,400), n/c corn 18 tmt (0-300), beans 376.7 tmt (200-500), n/c beans 9.8 tmt (0-150), meal 111.9 tmt (200-400), and oil 14.6 (-5-20).

Another big week for old crop corn exports. Bean exports as expected. New crop wheat exports better than expected.

China said they had resumed soybean shipments from five Brazilian firms that had been previously suspended over phytosanitary concerns. The announcement came ahead of a planned state visit from the Brazilian president to China.

Brazil’s grain exporters association said soybean exports in May would be 12.6 mmt, which is less than a year ago as China has suggested they’re not in a rush to lock in supplies.

Corn posted a bearish outside down day on Wednesday with prices dropping to new lows for the year and seeing follow-through this morning. The market is oversold, but the move yesterday was a breakout to new lows. Support is now 4.40 and resistance 4.60.

Beans posted a higher high and higher low, but reversed gains from early in the session to finish near the day’s lows. The market bounced from support at the bottom of the range overnight. The market is starting to correct from oversold with more room to bounce within its range. Support for July is 10.40 and resistance 10.60.

Corn traded lower again on Wednesday as expected planting progress in the U.S. and concerns that old crop supplies may not be as tight as previously feared weighed on the market. The focus will eventually shift to weather during the U.S. growing season, but for now, funds are selling as the U.S. crop is going to see timely planting. Producers should use option strategies that will establish floors while keeping the upside open to protect new crop bushels.

Beans tried to rally on Wednesday following the headline that U.S. and China trade representatives would meet, but the rally fizzled into the close. We’re seeing some buying overnight ahead of the planned announcement of a U.S./UK trade deal this morning with prices recovering toward the middle of its recent trading range. Looking beyond any trade related headlines, U.S. bean planting has gone smoothly, and the world soybean supply outlook is bearish. Producers should buy puts to protect unsold old crop bushels.

Corn mixed

Beans up 5-7