Markets are trading mixed overnight with beans giving back a part of their gains to start the week, while reports that Ukraine used U.S. weapons to strike deeper into Russia and comments about nuclear retaliation by Putin and are giving the wheat market a small boost as well.
Managed funds to start the week were estimated as net buyers of 5k corn to push the net long out to 107k, net buyers of 2k beans to reduce the net short to 58k, and net buyers of 5k wheat to reduce the net short to 47k.
Crop progress showed wheat planting 94% (95 expected) and wheat rated 49% g/e (46 expected).
December options expire on Friday with greatest corn open interest at the 4.20 puts and 4.30 calls, which is probable range for the corn market this week.
Ukraine’s ag minister said their wheat production next year could increase from 22 mmt this year to 25 mmt on a larger planted area.
Brazil said it would announce farm agreements with China on Wednesday ahead of scheduled meetings with China’s President Xi.
ADM reported lower Q3 profits and reported more accounting irregularities.
Corn saw follow-through buying to start the week after a bullish reversal from lows on Friday. The market is range-bound with directional indicators balanced. Support for December is 4.20 and resistance 4.30.
Beans posted a higher high, higher low, and higher close to start the week with the market bouncing off support near the bottom of the range and finishing near the highs of the day. The market has corrected from oversold with directional indicators neutral again. Support is 9.80 and resistance 10.20-10.30.
Corn is working into the upper end of its recent range this morning, getting some spillover support from the wheat on Russia/Ukraine tensions. The market is hitting resistance, however, with December option expiration likely an upside limiting factor this week. Look for the range-trade to continue.
Beans made a big recovery from lows yesterday to finish near the highs of the day as the market found good support in the 9.80 area again. We’re giving back a portion of yesterday’s gains this morning as the bearish outlook remains in place. Producers can look at puts to cover unpriced bushels as beans are expected to be the weak leg moving forward.
Corn mixed
Beans down 5-6