Corn                                                    Estimated Fund Position
Short Term: Down                           Net Long Futures and Options: 244141
Long Term: Up                                 Change: +4000
Overnight Trade: Z -5 N -6 1/4
Opening Calls: 5-7 Lower

The December corn continues to work toward the $7.10 support. If that level is tested and holds today it would be a good buy signal. The market is oversold and due for a bounce and it seems that traders are just waiting for the support to be tested. Export sales were good at 1.13 MMT for the 11/12 crop year. Another month of sales at that level and USDA would have to reconsider their export estimate.

Wheat                                                Estimated Fund Position
Short Term: Down                          Net Long Futures and Options: -41949
Long Term: Down                          Change: +1500
Overnight Trade: Chicago: Z -5 KC: Z -3 1/4
Opening Calls: 3-5 Lower

Kansas City wheat is still struggling. It appears that the December contract is headed for the $7.70 area. The new crop July contract is testing the support at the $8.00 - $8.10 area today and if that fails, $7.50 becomes the next downside target. Export sales weren’t good at 413,500 MT.

Soybeans                                        Estimated Fund Position
Short Term: Down                         Net Long Futures and Options: 125345
Long Term: Up                               Change: -4000
Overnight Trade: X -2 1/2 N -3 1/2
Opening Calls: 2-4 Lower

Soybean export sales were poor at 351,900 MT, which won’t help matters today. Today’s close will be critical. A close below $13.73 in the November contract will confirm that we are headed to $13.50. The market is oversold and due for a bounce, but there doesn’t seem to be any buying enthusiasm at the moment, but a positive close today should market a low, at least temporarily.

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

Live cattle futures closed with triple digit gains in the front three months on Wednesday. The rally comes on a jump 5,500 in open interest, as new buyers enter the market. Cash trade for the week remains quiet, with asking prices now firming to $121 in the south and $192+ up north. Cutouts were mixed on moderate demand, but the packer shows no sign of slowing kills. Overnight is firmer across the board. Major resistance for the front month is just above 122.00.

Feeder Cattle
Short Term: Up
Long Term: Down
Opening Call: 10-30 Higher

Feeder cattle futures made a huge leap forward on Wednesday, with gains of nearly 2.00 being posted. The rally has been boosted by a 60 cent drop in December corn value. Cash feeder prices don’t seem to be keeping up with the board rally. First half of the week sales have been quoted below week ago levels. We will be watching for any technical divergence to trip sell signals in this market.