Corn                                        Estimated Fund Position
Short Term: Up                    Net Long Futures and Options: 44299
Long Term: Up                     Change: +3000
Overnight Trade: K -6 @7:30 AM

May corn made a new high for the move Friday, but has fallen back to the 40 and 50-day moving average support this morning. The news isn’t too much different than it was last week. Old crop supplies are tight and traders are nervous about potential new crop stocks. There isn’t any bull spreading this morning, but that could return very quickly. The March futures went off the board at $7.39, look for the May contract to move to that level.

Wheat                                     Estimated Fund Position
Short Term: Down               Net Long Futures and Options: -61316
Long Term: Down                Change: -2000
Overnight Trade: Chicago: K -9 KC: K -7 @7:30 AM

The May KW hasn’t been able to build on Thursday’s gains and that lack of continued upward momentum is weighing on the wheat market today. It doesn’t help that the US Dollar is higher and that we need to see strong exports. It wouldn’t be a surprise to see pressure in the market through the day, but the 9-day moving average at the $7.38 area should be good support.

Soybeans                                Estimated Fund Position
Short Term: Down                 Net Long Futures and Options: 98210
Long Term: Down                  Change: -5000
Overnight Trade: K -16 @7:30 AM

The soybeans continue to push lower. This market has been range bound for months and we continue to trade inside those ranges. So, despite the strong old crop demand, we may see the May soybeans drift back to the $13.50 area over the next several sessions. Once we get to the bottom of the trading range, plan on the market moving right back up to $15.00.

Live Cattle
Short Term: Down
Long Term: Down
Opening Calls: Mixed

Live cattle futures closed sharply lower on Friday, with triple digit losses and new contract lows posted almost everywhere. The new lows came as a result of lower cash and wash out liquidation of spec longs in the market. A potential bankruptcy in Cyprus over the weekend has the Dollar trending higher, which may limit recovery efforts in commodities. We expect show lists cleaned up well, with a number of green cattle purchased at last weeks reduced rate. The technical picture looks pretty bleak, with oversold conditions being the only near term salvation.

Feeder Cattle
Short Term: Down
Long Term: Down
Opening Call: Mixed

Feeder cattle futures, like the fats scored triple digit losses on Friday and gave up more than 2.00 for the week. The market had shown some stabilization prior to Friday’s implosion, with all of the weekly losses coming in the one day. Vastly oversold conditions, along with weaker overnight corn values could allow for an early bounce. Friday’s on feed report could provide supportive data, with limited placements due to poor feedlot conditions the last half of the month.