Markets are trading mixed this morning in a quiet trade. Beans traded as much as 8 higher at one point overnight but have given back all of those gains.

Managed funds on Wednesday were estimated as net buyers of 4k corn to push the net long out to 109k, net sellers of 5k beans to push the net short to 68k, and net buyers of 2k wheat to reduce the net short to 44k.

Export sales this morning for wheat came in at 549.6 tmt (245-600 expected), corn 1,494.6 tmt (1,000-2,200), n/c corn 0 (0-100), beans 1,860.6 tmt (1,000-1,600), n/c beans 0 (0-100), meal 274.9 tmt (210-450), n/c meal .7 (0-40), and oil 21.9 (5-35).

Bean sales above the top end of the range of estimates with everything else inline with expectations.

Weekly EIA data showed ethanol production off by 3k bbls per day to 1,110k bbls. Stocks were up by 524k bbls to 22,563k. Weekly production at 326 mbu was well-above the necessary level of 305m to hit the USDA’s usage forecast.

China said they had approved imports of Brazilian sorghum. Brazil is not a major exporter of sorghum, but it does show China’s favor of Brazilian ag imports over the United States.

John Deere forecast lower-than-expected profit as “shrinking farm incomes and inflationary pressures affect demand for tractors and other ag equipment."

Ukraine fired more long-range missiles into Russia over the past 24 hours with tensions in that part of the world remaining elevated.

Outside markets are anticipating more Chinese stimulus with the country expected to maintain their target of 5% growth.

Technical trends have corn with a neutral bias, beans a neutral bias, and wheat now back with a neutral bias.

Corn posted a bullish outside up day on Wednesday with the market bumping back into resistance near 4.30 again.  The market is overbought after the recent bounce from lows with the market lacking a direction. Support is 4.20 and resistance 4.30.

Beans posted a lower low, lower high, and lower close on Wednesday with prices bumping into support at the bottom of the range again. Directional indicators are neutral, but the repeated tests of support at the bottom of the range suggests an eventual push through to the downside.  Support is 9.80 and resistance 10.00.

Corn briefly pushed above the top end of the 4.20-4.30 range where the greatest option open interest is located overnight but has dropped back into that range this morning. The corn price outlook is unchanged with strong demand supportive while comfortable supplies are an upside limiting factor. Look for the range-trade to continue.

Beans tried to bounce again overnight, but the buying stalled out and they are trading back near the bottom end of the recent range this morning. Weather in South America is good with no change to the outlook for growing global supplies. With the repeated tests of support at the bottom of the range, look for an eventual push to new lows.

‍

Corn down 1

Beans down 1