Corn Estimated Fund Position
Short Term:Down Net Long Futures and Options: 244642
Long Term: Up Change: -7000
Overnight Trade: Z -2 @7:30 AM
The corn market posted a poor close yesterday and saw follow through selling overnight. The December corn is now below the 9-day moving average and looks like it is headed to the lower end of the trading range at the $7.90 area. Yield reports still aren’t good and basis levels are still strong, which leads me to believe that the corn will remain range bound for the time being. Once first notice day for the September contract is behind us the market will likely work high going into the September supply and demand report.
Wheat Estimated Fund Position
Short Term: Up Net Long Futures and Options: 7181
Long Term:Up Change: -2000
Overnight Trade: Chicago: Z -2 KC: Z-3 @7:30 AM
Like the corn, the wheat is working down to the bottom of the trading range, which is at the $8.75 area for the December KW. Wheat specific news is very limited and the market is taking directional cues from the corn market. A sharp break today would be a buying opportunity.
Soybeans Estimated Fund Position
Short Term: Up Net Long Futures and Options: 205680
Long Term:Up Change: -6000
Overnight Trade: X -8 @7:30 AM
The soybeans have been very disappointing since making the new highs early yesterday. The November beans avoided posting an outside day down on the chart yesterday, but there was still follow through selling overnight and the market is back to testing the $17.00 area as support. Demand is too strong and the crop is too damaged for the pressure to last long. Buy breaks.
Short Term: Up
Long Term: Up
Opening Calls: Mixed
Live cattle futures closed moderately to sharply lower on Monday, with long liquidation a key feature for the day. This morning’s trade is modestly firmer, supported by a weak Dollar and short covering. Asking prices in the feedlots is holding near $123 in the south and $193+ up north. Showlists are reported to be smaller overall, with our list up modestly from the record lows of a week ago.
Short Term: Up
Long Term: Down
Opening Call: 20-40 Higher
Feeder cattle futures finished .20-.50 lower on Monday, with pressure from weaker live cattle and support from lower corn and beneficial rains. Early wheat pasture planting in Oklahoma and Texas got some help from Mother Nature over the past few days. More moisture from Isaac is expected to push through the area later in the week. October futures are reaching the top end of the recent channel, which could provide a fresh hedging opportunity.