Markets are trading lower this morning in a quiet trade with prices giving back a portion of yesterday’s recovery from lows while remaining within their recent ranges ahead of Friday’s high-risk report.

Managed funds on Tuesday were estimated as net buyers of 2k corn to push the net long to 230k, net sellers of 1k beans to push the net short out to 48k, and net buyers of 1k wheat to reduce the net short to 92k.

The CFTC and export sales reports will be delayed again this week with government offices closing down for a day of mourning tomorrow.

Ukraine said grain exports during the month of December were down by 35% from the prior year after the government introduced measures to curb tax avoidance on agricultural commodities.

The U.S.$ is recovering to recent highs this morning, which continues to weigh on commodity prices with wheat seeing the greatest impact.

EU soft wheat exports since the start of their marketing year are down 34% from a year ago as of Jan. 5.

Corn traded an inside day on Tuesday with prices bouncing from trendline support to finish the day in the upper end of the range and with small gains. The market corrected the overbought condition. Support is 4.54 and 4.40 with resistance 4.60.

Beans posted a doji on Tuesday with prices recovering from intraday lows to finish essentially where they started the day. Directional indicators are balanced with support 9.80 and resistance 10.00.

Corn made a solid recovery from intraday lows yesterday as dryness in Argentina and strong U.S. demand continue to spur fund buying. The market is expected to remain range-bound ahead of Friday’s numbers with farmer selling expected to limit gains above 4.60. There is a very large managed fund long ahead of the report, which the report will need to be supportive to keep the current move to the upside going.

Beans were under pressure in early trade yesterday but recovered from intraday lows to finish essentially unchanged. Argentina is dry, but unless major problems emerge in Brazil, the total South American crop is expected to be enough to keep global supplies elevated. Producers should use puts to cover the downside on unsold bushels.

Corn down 1-2

Beans down 2-3