Corn Estimated Fund Position
Short Term: Up Net Long Futures and Options: 225605
Long Term: Up Change: -16000
Overnight Trade: Z+4 @7:30 AM
Look for another day of two sided trade in the corn market. Early yield results are poor, but traders seem to want further confirmation of the poor yields before trying to push the market higher again. Some fresh demand news wouldn’t hurt either and traders will be watching today’s ethanol production figures closely. Support in the December corn is clearly at the $7.80 - $7.86 area with resistance at the 9-day moving average, which is $8.03 ½.
Wheat Estimated Fund Position
Short Term: Down Net Long Futures and Options: 15327
Long Term:Up Change: -7000
Overnight Trade: Chicago: Z +7 KC: Z+5 @7:30 AM
Yesterday the December KW closed right at the bottom of the recent trading range, making yesterday’s low critical support for today. Traders seemed disappointed in the performance of the corn market and in the fact that Egypt bought Black Sea wheat. Export sales have been solid lately, so we shouldn’t need much pressure to attract more demand. However it looks like the wheat will be weak until the corn market turns or until we get some fresh demand news.
Soybeans Estimated Fund Position
Short Term: Down Net Long Futures and Options: 204985
Long Term:Up Change: -11000
Overnight Trade: Z+13 @7:30 AM
The soybeans managed a mid range close yesterday and we have seen some buying overnight, but so far the market is still stuck in a sideways pattern. It seems that there is still some hope for the soybean crop and there is fear in the bull camp that yields are at least stable for the moment. Basically, the market needs more information so plan on sideways trade until we have a better handle on yield potential.
Short Term: Up
Long Term: Up
Opening Calls: 20-40 Higher
Live cattle futures closed higher on Tuesday, with the October gaining .52 on the day. Cash optimism, along with a solid technical picture is bringing new buyers to the market. Open interest was up 992 contracts for the day. Asking prices of $122-$123 in the south and $193-$195 in the northern beef market are expected to stay firm. Overnight, the October contract put in its’ highest trade since April 30th. Beef prices are putting in 5 week highs as well.
Short Term: Up
Long Term: Down
Opening Call: Mixed
Feeder cattle futures posted another day of triple digit gains on Tuesday, as short covering along with fresh technical buying power the market. Cash trade is improving, but not keeping up with the recent ascent in the futures trade. October feeders have gained 5.50 since their close on Thursday and hold close to an 8.00 premium to the current cash index. Overnight corn prices are a few cents higher, capping current rally efforts in the feeders. Chart patterns are impressively strong.