Corn                                          Estimated Fund Position
Trends
Short Term: Down                     Net Long Futures and Options: 142527
Long Term: Down                      Change: +9000
Overnight Trade: U +6 1/4 Z +4 1/2
Opening Calls: 5-7 Higher

The corn market continues to consolidate. The December contract filled the open chart gap at the $6.20 area before making a mid-range close. Overnight the corn was back to testing yesterday’s highs. The $6.20 area will be watched very closely today and a close above that level would be very friendly, barring a more bearish than expected report next week. Export sales were ok at 621,800 MT for the old crop and 868,800 MT for the new crop. The primary buyer was “unknown destinations,” which traders are hoping is China.

Wheat                                         Estimated Fund Position
Trends
Short Term: Down                      Net Long Futures and Options: -46146
Long Term: Down                       Change: +2000
Overnight Trade: Chicago: U +3 KC: U Unch
Opening Calls: Mixed

The September KW made a run at last Friday’s low yesterday, but closed in the upper end of the trading range. The rejection of yesterday’s early weakness may create some optimism in the wheat today, but unfortunately there wasn’t much buying interest overnight. Export sales were a little light at 424,200 MT, which won’t help the bullish cause either. We need to see a move above yesterday’s high and a positive close to confirm a bottom.

Soybeans                                    Estimated Fund Position
Trends
Short Term: Down                       Net Long Futures and Options: 31501
Long Term: Down                       Change: +5000
Overnight Trade: U +1 X+1 1/2
Opening Calls: 1-3 Higher

The soybeans are trying to break out of the recent trading range and make a move to the top of the multimonth trading range. Old crop export sales were good at 305,700 MT, with China being the main buyer. One more week of export sales like this and a few weeks of good shipments and USDA would have to consider raising the export estimate. Expectations for a friendly report next week are very supportive to the soybeans.

Live Cattle
Trend
Short Term: Up
Long Term: Up
Opening Calls: Mixed

Live cattle futures closed sharply higher on Thursday, as traders anticipated firmer cash development. The August contract broke out above recent highs, confirming the bull flag and projecting a technical move towards 120.00. look for some hedge covering in today’s action, as well as profit taking ahead of the weekend.

Feeder Cattle
Trends
Short Term: Up
Long Term: Up
Opening Call: Mixed

Feeder cattle futures traded limit higher in the August contract into the close, with aggressive cash markets overshadowing the higher corn values. Feeder technical indicators are supportive as well. Rumors of ever larger Chinese corn purchases could keep bullish enthusiasm to low uproar but markets appear to be favoring new highs for the move. This morning’s economic reports should be monitored for further direction.