Corn                                     Estimated Fund Position
Trends
Short Term: Down               Net Long Futures and Options: 246247
Long Term: Down                Change: -30000
Overnight Trade: N -11 Z -6 3/4
Opening Calls: 7-10 Lower

Corn was limit down again yesterday and had follow through selling overnight. One can hope that the $7.10 - $7.12 area acts as support today in the July corn, but the market won’t be helped by the export sales report which showed only 295,800 MT of old crop sales and 598,900 MT of new crop. It is very interesting to note, however, that China was listed as a buyer of old crop corn. If that becomes a trend, it will definitely change market psychology. $7.12 has to hold on a closing basis today to avoid a move down to $6.90.

Wheat                                  Estimated Fund Position
Trends
Short Term: Down                Net Long Futures and Options: -28493
Long Term: Down                 Change: -7000
Overnight Trade: Chicago: N -8 KC: N -10
Opening Calls: 7-10 Lower

The wheat is still under pressure and support levels continue to fail. On the other hand, yield reports are still poor and there are still problems in the Spring Wheat regions of N. America. Technical, harvest selling, and the outside market pressure are wreaking havoc on the wheat market. As some point the fundamental outlook will become more bullish, but for the moment the charts are telling us to sell.

Soybeans                             Estimated Fund Position
Trends
Short Term: Down                Net Long Futures and Options: 63805
Long Term: Up                     Change: +2000
Overnight Trade: N -14 ¾ X-14 1/2
Opening Calls: 10 – 15 Lower

Yesterday the soybeans benefited from the spread trade, but seemed to snap back to reality overnight. Old crop export sales were good at 179,400 MT, but I don’t think that will be enough to keep the beans from slowing grinding lower. $13.50 will act as temporary support in the July contract, but be prepared to see a move to at least $13.30.

Live Cattle
Trend
Short Term: Down
Long Term: Down
Opening Calls: 10-30 Higher

Live cattle futures retreated from midday highs to close mostly lower on Wednesday, with deferred contracts sharply lower. Weakness in deferred live cattle stems from this weeks’ sharply lower corn market. Some of the fears of soaring corn is leaving the market. This weeks’ cash trade continues to elude, with packers and feedlots holding to their resolves, so far. Friday’s cattle on feed report is expected to show 105% on feed, placements near 92% and marketings up 3%.

Feeder Cattle
Trends
Short Term: Down
Long Term: Down
Opening Call: 20-30 Higher

Feeder cattle futures closed moderately higher on Wednesday, supported by near limit losses in the July corn contract. For the week August feeders are trading nearly 4.00 higher and have broken out of the recent sideways trading pattern. Overnight markets are firmer once again, with grains falling moderately lower. The expectation of lower placements in Friday’s report should add support.