Markets are trading higher across the board this morning with corn leading the move as slowing grain exports out of the Black Sea, weather uncertainty, and optimism for a U.S./China trade deal this week has managed funds paring short positions.

Managed funds on Tuesday were estimated as net buyers of 2k corn to reduce their net short to 142k, net buyers of 5k beans to push the net long to 21k, and net sellers of 2k wheat to push the net short to 97k.

Weekly EIA data will be out this morning with ethanol production expected edge higher.

Trump and Xi are expected to meet at some point this week with market participants waiting for guidance.

Ukraine said corn exports in June would drop to 1 mmt, which would be half of the volume that was shipped in May.

Vietnamese firms are expected to sign memorandums of understanding with U.S. partners to buy $2b worth of U.S. farm produce.This was part of an effort to seal a new trade deal between the two countries.

Russia/Ukraine tensions continue to be monitored with news that Ukraine had hit the road/rail bridge to Crimea the latest major headline.

Corn posted a bullish doji on Tuesday with the market spiking to new lows and then finishing essentially unchanged. The market is due for a larger bounce from oversold with July support 4.40 and resistance 4.60.

Beans posted a higher high, higher low, and higher close on Tuesday with the market recovering back into the trading range that we’ve seen much of the last 2 months. The oversold condition is starting to correct. Support is 10.40 and 10.30 with resistance 10.67.

Corn spiked to new lows on Tuesday, but the market recovered from there to finish with small gains, suggesting new selling interest is slowing. Old crop supplies in the U.S. and globally remain tight, and we are in the time when markets typically add some risk premium ahead of summer weather. Considering the current time and the size of the fund short, be patient with sales.

Beans have recovered back into their recent trading range after posting what appears to have been a false downside breakout on Monday. Beans are in need of a U.S.-friendly trade deal with China as the global supply outlook remains bearish on record global supplies. Producers can look at option strategies to establish floors.

Corn up 4-6

Beans up 4-7