Grains and cattle are mixed early Wednesday, with hogs higher.
Craig Turner with StoneX says corn opened higher and tries to hold early gains after bouncing off chart support Tuesday and with some spread unwinding with soybeans.
Corn saw liquidation the last few sessions on long liquidation ahead of first notice day on Friday and end of the month profit taking with funds still holding a hefty long net position.
May corn futures bounced off support Tuesday and continue to hold the 40-day moving average of $4.91 3/4.
However, it may struggle with soybeans and wheat falling on tariff fears and the same liquidation ahead of first notice day and end of the month.
May soybeans held their 50 day moving average around $10.37 3/4 on Tuesday and rallied nearly 12 cents off that low to close slightly higher on the day.
Soybeans have not been able to extend those gains as the complex is watching the tariff situation with no resolution on the horizon with China.
The looming 30 day deadline is also expiring for 25% tariff increases on imports from Canada and Mexico.
Corn and soybean traders have also been positioning ahead of the USDA Ag Outlook Forum this Thursday and Friday.
Turner says the market is anticipating around 93.5 million acres of corn and with over a 181 bu. or above trend line yield that could push ending stocks up to around 1.9 billion bu.
The surprise would be a higher acreage figure because he says that could push corn ending stocks back over 2 billion bu.
Meanwhile, less soybean acres are anticipated with an average trade estimate around 84.4 million acres and with a 52 bu. yield that keeps the balance sheets fairly tight.
He says the corn to soybean price ratio has gotten stretched to around 2.0 to 1 and that may be wide enough for the time being.
Wheat is seeing pressure from tariff concerns, but Turner says is suffering from slow demand and a higher dollar index.
