Markets are trading mixed overnight with beans seeing follow-through to the downside after reversing from intraday highs yesterday while the corn is seeing small gains.

Managed funds to start the week were estimated as net sellers of 3k corn to drop the net long to 45k, net sellers of 4k beans to push the net short out to 42k, and net sellers of 7k wheat to push the net short out to 38k.

Export inspections will be out this morning and crop progress after the close due to the Veteran’s Day holiday.

Ukraine’s Ag Ministry said their fall grain planting had hit 96.3% complete.

The US$ is hitting new recent highs this morning and is approaching the highs we last saw mid-summer.

Indian wheat prices hit record highs this week as a delay in their government releasing stocks and strong demand drove values.

France’s farm ministry raised their 2024 wheat and corn production forecasts with wheat up .2 mmt to 25.6 mmt, which is still their smallest crop since the 1980’s. Corn production increased by .1 mmt to 14.6 mmt.

Corn posted a lower low, lower high, and lower close to start the week as the market hit resistance and the rally stalled out. The market is correcting from overbought and hitting resistance. Support is 4.24 and resistance 4.30-4.40.

Beans traded an inside day on Monday with prices hitting 100 dma resistance and then pulling back to finish near the bottom of the day’s range. The market is starting to correct from overbought with support below the market at 10.00 and resistance 10.30-10.40.

Corn pulled back to start the week, but is seeing small gains this morning as we continue to see strong demand and managed funds appear to be interested building a net long position. There is still believed to be a lot of un-sold corn in producer’s hands to be an upside limiting factor, but strong basis levels would suggest end users are still struggling to get ownership, at least for now. Longer term, the supply and demand outlook is comfortable, so producers can look at zero-cost option strategies to establish downside protection after recent gains.

Beans made a run at last week’s high in early trade yesterday, but prices pulled back to start the week under pressure with more weakness overnight. The global supply outlook for beans is still very comfortable, which is expected to make beans the weakest leg moving forward. With the market trading $.60+ from lows at one point on Friday, producers should make sure sales are caught up and use options to add additional downside protection.

Corn up 2-3

Beans down 3-5

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