Markets are trading higher overnight with beans catching the best bid along with equity markets as the market may have priced in enough tariff risk for the time being.

Managed funds were estimated as net buyers of 2k corn to start the week with the net long estimated at 53k, net buyers of 4k beans to reduce the net short to 65k, and net buyers of 3k wheat to reduce the net short to 113k.

Crop progress showed corn planted 2% (2% expected), spring wheat planted 3% (2% expected), and winter wheat rated 48% g/e (47% expected).

Global markets saw a volatile trade to start the week with rumors that tariffs would be delayed driving a widespread market rally only to have the report refuted shortly after which led to widespread sell-off.

Trump threatened an additional 50% tariff on China if they did not withdraw retaliatory tariffs to which China said they would not and would “fight to the end”.

Chinese ag companies saw their share prices surge overnight as investors bet tariffs would limit U.S. imports and boost their domestic producers.

China has ramped up purchases of Indian canola meal over the past few weeks as their purchases of Canadian canola meal have come to a halt.

Corn posted a higher high, higher low, and higher close to start the week with prices grinding into the upper end of its recent range this morning. The market is getting to be a bit overbought with resistance at 4.68 and support 4.42.

Beans posted a lower low and lower high on Monday, but were able to bounce from lows to finish with gains. The market is testing resistance at the bottom of the prior consolidation range this morning as the market corrects from oversold. Support for May is 9.80 and resistance 10.00.

Corn had another impressive day on Monday with the market shaking off any tariff concerns to finish with gains as the market saw aggressive bull-spreading. Old crop U.S. and global corn supplies are going to be tight by the end of the marketing year, which seems to be the driver of the bull-spreading. In the near-term, the market has most of the corn it needs with prices hitting resistance overnight. After recent gains, producers should make sure old crop sales are caught up and look to establish floors on new crop corn.

Beans have made a solid recovery from yesterday’s lows with the market firm into the close yesterday and then seeing solid gains overnight. The market has recovered to test the lower end of the previous consolidation range, which is expected to be resistance after the market broke out to the downside on Friday. With tariff concerns not expected to go away anytime soon, global bean supplies record large (regardless of tariffs), and Brazil’s crop is continuing to flow into global markets. Producers should make sure old crop sales are caught up while better selling opportunities are expected for new crop.

Corn up 1-3

Beans up 9-11