Markets are trading lower across the board with general weakness weighing on about every market despite a lower U.S.$. A lack of progress in U.S./China trade talks and non-threatening weather are limiting buying interest.

Friday’s CFTC report showed that managed funds for the week ending 4/29 were net sellers of 41k corn to drop the net long to 71k, net buyers of 7k beans to push the net long to 38k, and net sellers of 31k wheat to push the net short out to 121k. Notably, funds also pushed their net short in HRW to a new record. The selling in corn and wheat was much larger than expected while the bean position was as expected.

Managed funds on Friday were estimated as net sellers of 5k corn to reduce the net long to 65k, net buyers of 5k beans to push the net long to 39k, and net buyers of 8k wheat to reduce the net short to 111k.

Crop progress will be out after the close and is expected to go solid progress for corn and bean planting. Corn ratings won’t be out until next week at the earliest.

China on Friday said they were evaluating an offer from the U.S. to hold talks over the current 145% tariffs.

Stone X revised their 2024/25 Brazil bean production estimate by .9 mmt to 168.4 mmt (USDA 169).

The White House proposed on Friday an energy budget that would cancel $15b in carbon capture and renewable energy funding.

Ukraine state forecasters said prolonged frosts followed by unusually high temperatures with a lack of precipitation had negatively impacted the development of their spring crops.

Corn posted a lower low, lower high, and lower close on Friday and is seeing follow-through selling this morning after July dropped through support near 4.70. The next major support comes in near 4.60 with resistance now at 4.70.

Beans posted a higher high, higher low, and higher close on Friday, but the market gapped open lower overnight and is working back toward the middle of its recent range this morning. The market is balanced with support at 10.37 and resistance 10.60.

Corn is pulling back within its recent range as a lack of problems with the U.S. crop early in the growing season is limiting buying interest. Seasonally, there may be another couple weeks of weakness before focus shifts to summer weather in the U.S. Producers should continue to look at option strategies to establish floors on new crop bushels while keeping the upside open.

Beans are continuing their range-bound trade with managed funds willing buyers on pull-backs to prop up prices. Headlines regarding renewable diesel blending levels have been mostly supportive and expectations for small U.S. planted area this year have sparked buying as well. With that said, we still have a forecast for record global bean supplies, which makes it difficult to be overly friendly beans. Producers should buy puts to protect the downside on old crop beans.

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Corn down 2-3

Beans down 3-4