Markets traded mixed overnight, with beans under pressure after finishing off the highs yesterday and wheat adding to recent gains and following global prices higher. Corn is content for now to trade between the two, sitting near unchanged.

Managed funds to start the week were estimated as net buyers of 14k corn to reduce the net short to 215k, net buyers of 14k beans to reduce the net short to 155k, and net buyers of 6k wheat to reduce the net short to 43k.

Crop progress showed corn rated 65% g/e (64 expected), beans rated 65% g/e (66 expected), and spring wheat harvest 70% (69 expected).

The USDA crush for July came in at 193.5 mbu (192.1 expected), which increases the odds that the USDA will need to revise crush demand higher on their balance sheets for 2023/24. Weekly EIA data will be delayed until tomorrow due to Labor Day.

There was a mixed reaction to news that China would place tariffs on Canadian canola imports.  Bean oil traded lower along with canola futures, but there was some buying in beans as fewer Canadian canola imports could push China to import more beans.

Ukraine grain exports thus far through the 2024/25 marketing year have totaled 7.2mmt, which is up from 4.9mmt for the same period a year ago.

Corn posted a higher high, higher low, and higher close to start the week with December pushing from support at the 20 DMA to now trade at resistance near the 50 DMA. The market is overbought after recent gains with stiff resistance expected in the 4.10-4.20 area.  Support is now near 4.00.

Beans posted higher highs, higher lows, and a new recent high close with the market finding support at the 20 DMA and rallying until it ran into resistance in the 10.20-10.30 area. The market is overbought after recent gains with support 9.80 and resistance 10.20-10.30.

Corn started the week off with large gains as the market is questioning whether we can hit a 183 bpa type national corn yield and some technical levels have been taken out that are likely sparking short covering from the funds. Harvest is quickly approaching with the market expected to encounter resistance in the 4.10-4.20 area, but a major sell-off to recent lows is not expected.  Undersold producers can use the recent strength to get caught up as there is a decent chance that we see more of a sideways trade as we head toward harvest.

Beans started the week with big gains as short covering by managed funds was a feature. Like corn, harvest will ramp up soon to limit gains in the near-term with the bigger picture global supply outlook still very bearish on expectations for record production out of South America. Undersold producers can use the recent strength to catch up on sales.

Corn down 1

Beans down 5-7

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