Corn Estimated Fund Position
Short Term:Down Net Long Futures and Options: 194134
Long Term: Down Change: +4000
Overnight Trade: Z +4 @7:30 AM
The December corn made it to the $7.50 area overnight, which should prove to be solid resistance in the short run. Export sales were better than last week at 166,700 MT, but still horrible. There was strength in the Chinese corn market due to friendly economic data, but otherwise news is limited. Plan on a two sided session today.
Wheat Estimated Fund Position
Short Term: Down Net Long Futures and Options: -10993
Long Term: Down Change: +2000
Overnight Trade: Chicago: Z +7 KC: Z +6 @7:30 AM
Wheat sales were better than last week at 410,000, but still a little light. The overnight gains have brought the December KW up to the 40 and 50-day moving average resistance, which will be a major test for the market, especially without much fresh supportive news. The market has been range bound for quite some time and the upper end of the range is from $9.25 - $9.50 and move to that level could be accomplished with just a little short covering rally, so don’t rule out such a move.
Soybeans Estimated Fund Position
Short Term: Down Net Long Futures and Options: 140974
Long Term: Down Change: +5000
Overnight Trade: X +16 @7:30 AM
Export sales were great again at 523,400 MT, which is still more than double what we need each week even after the big increase in the export estimate. The front months of the beans are testing the 9-day moving average resistance, which has proven very difficult to close above during the past month. A strong close today would definitely make the shorts start thinking about taking profits.
Short Term: Up
Long Term: Up
Opening Calls: 10-30 Higher
Live cattle futures posted strong gains again on Wednesday, with the active December contract closing above the 100 day moving average. Overnight trade is firmer once again, with Dec-April now trading above the 50 day as well. No deliveries were posted against the October contract, in spite of the premium to last weeks’ cash trade. Asking prices are firmly entrenched at $127+ in the south and a minimum of $196 in the beef up north. Packer bids have been nonexistent so far this week. Open interest was up another 3,000 contracts on Wednesday’s rally.
Short Term: Up
Long Term: Up
Opening Call: Mixed
Feeder cattle futures posted another day of triple digit gains on Wednesday, in the face of solid gains in the corn market. Overnight trade has been two sided, with a slightly higher bias, in spite of continued grain strength. The prospect of sharply lower September placements in Friday’s on feed report is overshadowing any gains in feed cost. Technical indicators have turned higher on the short and long term indicators. Overnight highs in the November contract were the highest since July 12th.