Corn Estimated Fund Position
Short Term: Up Net Long Futures and Options: 156565
Long Term: Up Change: +3000
Overnight Trade: Z +5 @7:30 AM
Friday the December corn closed above the 50-day moving average then saw follow through buying overnight pushing the market through trend line resistance. We have good news in the marketplace with the improved export sales and ideas that the betters sales will continue, which should keep support under the market. If the December contract can closed above $7.50, the next upside objectives will be in the $7.66 to $7.76 area with a move through the October high of $7.76 being the key to maintaining upward momentum.
Wheat Estimated Fund Position
Short Term: Down Net Long Futures and Options: -10776
Long Term: Down Change: +1000
Overnight Trade: Chicago: Z +3 KC: Z +5 @7:30 AM
The action in the wheat hasn’t been as impressive as it has been in the corn. The December KW is still slowly trying to climb off the bottom of the trading range. However, like the corn we have seen better demand news, which is supportive and in addition the crop condition ratings are not improving in the HRW Belt, which is bullish. It is a long way until harvest, but the trend is dry and there is no indication of that changing.
Soybeans Estimated Fund Position
Short Term: Up Net Long Futures and Options: 99054
Long Term: Down Change: +2000
Overnight Trade: F +9 @7:30 AM
The January soybeans made a new high for the move overnight. The market is creeping higher despite the excellent demand for soybeans and products. It is interesting to note that we may reach USDA’s soybean oil export estimate in the next report and there are still more that 10 months left in the crop year. The market is still relieving the oversold condition, so further strength is warranted in that respect. A move to $15.00 is not out of the question in the near term.
Short Term: Up
Long Term: Up
Opening Calls: 10-30 Higher
Live cattle futures closed sharply higher on Friday, with February gaining 2.70 for the week. Stronger cash and a weaker Dollar were key supporting factors. We may struggle to see much follow through to last weeks’ bullish move, although open interest has continued to climb on the advance. Softer equities and a slightly stronger Dollar will limit buying efforts in the meats. We anticipate that contracted cattle for the month of December will weigh on front end cash demand over the next couple of weeks.
Short Term: Up
Long Term: Down
Opening Call: Mixed
Feeder cattle closed moderately higher on Friday, with January up 2.27 for the week. The gains came in spite of an .18 gain in corn futures for the week. Overnight corn values continued to climb, which we expect to limit rally efforts in the feeders over the next couple of weeks. The cash index fell to 143.03 on Friday, its’ lowest level since the 3rd of October. Open interest declined 285 contracts on Friday’s higher close. Not a positive combination in most cases.