Grains are mixed early Wednesday and so are livestock.
Craig Turner with StoneX says soybeans are setting back on First Notice Day selling and rains in the Corn Belt overnight.
The 9.7 million bushel export sale of new crop to China is supportive but Turner says export pace is well behind a year ago on new crop business and he is not sure the U.S. can get caught up even though prices are in value levels.
Corn is seeing some support from higher wheat futures and flash export sales to Columbia and Mexico totaling over 10.5 million bushels new crop.
Corn also scored key reversals Tuesday and that may prompt some short covering by funds as well as profit taking end of month.
However, Turned thinks with corn and soybean prices falling below the cost of production the markets may be sensing lower acres in the future and could be trying to forge long term bottoms.
Wheat extends gains after key reversals yesterday and end of month fund short covering in what could also be bottoming action according to Turner.
He says global wheat stocks are at the lowest levels since 2007 but global competitors like Russia have still been undercutting U.S. prices.
Turner thinks when those countries start to run out of wheat the U.S. could pick up some export business and that could also forge a long term low in that market and produce a rally.
With grain and oilseed prices still close to four year lows he also recommends livestock producers lock in some feed needs.
