Corn Estimated Fund Position
Short Term: Up Net Long Futures and Options: -14763
Long Term: Up Change: -3000
Overnight Trade: N +4 Z +1 @7:30 AM
Bull spreading was active again overnight. The general attitude is that Friday’s reports won’t hold any bullish news for the new crop corn and we are still dealing with strong basis and tight old crop stocks. The spread trade has been very choppy, but should begin to trend higher, especially after we get the reports out of the way. Look for the July contract to make a run at $7.00 and for the December to struggle as long as USDA doesn’t throw a curve and the weather is non-threatening.
Wheat Estimated Fund Position
Short Term: Down Net Long Futures and Options: -63094
Long Term: Down Change: -1000
Overnight Trade: Chicago: N +2 KC: N +1 @7:30 AM
The wheat is ugly. The July KW made a new low for the move yesterday and again overnight. It is harvest time and we aren’t getting any help from the new crop corn. $7.10 is now critical support in the September contract. Failure there points to yet another leg lower.
Soybeans Estimated Fund Position
Short Term: Down Net Long Futures and Options: 98192
Long Term:Up Change: +4000
Overnight Trade: N -2 X -4 @7:30 AM
Bull spreading has been active in the soybean market. Right now it looks like the July contract is ready to make a run at the highs and the November contract is treading water waiting for the reports to get out of the way. Once we get past Friday the focus will return to the weather and right now the weather is mostly non-threatening which will likely put pressure on the November contract. Look for a move to $12.40 soon.
Short Term: Up
Long Term: Up
Opening Calls: Mixed
Live cattle futures closed narrowly mixed on Tuesday, with technical strength offsetting continued liquidation in the August contract. Three consecutive closes above the 50 day moving average has not been seen since early January, until yesterday. Overnight trade has been in a narrow .20 range on both sides of unchanged. Strength in the futures this week should provide the best chance in several weeks for better cash trade. Cutout values struggled on Tuesday, with the choice/select gap narrowing once again.
Short Term: Up
Long Term: Up
Opening Call: 10-20 Higher
Feeder cattle futures closed steady to modestly higher on Tuesday, continuing to take their lead from the live pit. Corn prices were mixed on Tuesday, with old crop firm and new crop off a couple cents. Feeders will be watching the fats again today, with their other eye of Fridays’ grain report for new direction. Cash index levels rose again on Tuesday, with reports from our customer base indicating particular strength developing in the light weight offerings.