Markets are trading mixed this morning with corn and wheat seeing small gains while the beans are seeing follow-through to the downside again with prices hitting new lows across the curve.

Managed funds on Tuesday were estimated as net sellers of 2k corn to reduce the net long to 158k, net sellers of 4k beans to push the net short out to 71k, and net sellers of 3k wheat to push the net short out to 76k.

A short-term govt. funding bill appears to be close. The latest version included a plan that would allow for sales of year-round E-15.

The funding bill also includes $10b in disaster relief for farmers.

Sinograin said they would stop selling corn from government reserves after an effort to prop up domestic corn prices after they dropped to 4 ½ year lows.

China said they would accelerate the pace of rural modernization and stabilize planting area to ensure stable and high production of grains.

Ukraine reported 6 mmt of grain exported through Romania for the Jan.-Nov. period this year.

Sovecon cut their Russian wheat production forecast by 3 mmt to 78.7 mmt, citing the worst crop conditions in decades.

Ukraine said only 3% of winter crops there were in bad shape with 77% rated good.

France Agrimer lowered their forecast for French wheat exports outside of the EU.

Corn posted a higher high, higher low, but lower close on Tuesday with prices remaining within their range. The market is balanced with directional indicators neutral. Support is 4.43 and resistance 4.50.

Beans posted lower lows, lower highs, and new low closes yesterday with the market hitting new lows again this morning as the next leg lower is underway. The market is oversold with support for Jan. at 9.50 and resistance 9.80.

OUTLOOK

Corn is holding together well near the middle of its recent range despite the weakness we are seeing in beans. Demand is strong to support prices, but managed funds are holding a large net long and producers are expected to be sellers above the market. Use zero cost option strategies (3-ways) to protect unsold corn as the weight of the lower bean market may start to spill into corn.

Beans are hitting new lows this morning with expectations for big South American crops and uncertainty regarding the future of renewable diesel are limiting buying interest. There looks to be another 15-20 cents downside before the market hits next support. Producers can look at puts to cover downside risk, but don’t give up ownership after the recent highs

Corn mixed

Beans down 12-16