Corn Estimated Fund Position
Short Term:Down Net Long Futures and Options: 238642
Long Term: Up Change: -6000
Overnight Trade: Z +7 @7:30 AM
The corn had another poor close yesterday, but a decent rebound overnight. At the lows the December contract is approaching the long term support at the $7.90 area, so perhaps we have done enough already. Yield reports are poor, which should keep support under the market and there is fear that more pressure will just lead to more demand. The charts still suggest a move to the upper $7.80’s is possible, but a close above $8.05 will negate that.
Wheat Estimated Fund Position
Short Term: Down Net Long Futures and Options: 5181
Long Term:Up Change: -2000
Overnight Trade: Chicago: Z +12 KC: Z+10 @7:30 AM
There is talk, again, about the Russians banning or slowing exports. There is no way to know if they will do anything or not, but we do know that they have problems and whether they halt exports or not we will probably see better demand at some point in the winter or spring. If we start seeing better exports we will see the wheat market begin to move itself out of the feed mix, which is bullish for both wheat and corn.
Soybeans Estimated Fund Position
Short Term: Up Net Long Futures and Options: 209680
Long Term:Up Change: +4000
Overnight Trade: X +7 @7:30 AM
The soybeans managed to stay positive yesterday and had more strength overnight. The Chinese keep buying beans, so there is little reason for weakness in the market. Monday’s weakness seems a little silly right now as it was simply a gift to the Chinese. Buy breaks.
Short Term: Down
Long Term: Up
Opening Calls: Mixed
Live cattle futures were higher across the board on Tuesday, with new buyers entering the market on early weakness. Cash trade is likely to take shape in the next 24 hours as buyers look to extend the long holiday weekend as much as possible. Overnight is showing strength in the August, while deferred contracts are modestly lower. Five new deliveries were posted against the August, with all of them demanded. We expect cash to come in near steady with week ago levels.
Short Term: Up
Long Term: Down
Opening Call: 20-50 Lower
Feeder cattle futures closed moderately to sharply higher on Tuesday, taking advantage of the soft corn trade over the past few days. Corn is attempting to rally overnight, which is pressuring feeders into giving back most of Tuesday’s gains. Cash index levels remain on the rise, but still a 2-3 dollar discount to the Sept-Oct futures. Look for the market to remain choppy, with buying and selling opportunities at either end of the recent range.