Corn Estimated Fund Position
Trends
Short Term: Up Net Long Futures and Options: 106843
Long Term: Down Change: +11000
Overnight Trade: Z +9 1/2 N +8
Opening Calls: 7-10 Higher
Overnight the corn pushed through resistance and made a new high for the move making $6.75 and $7.00 the next upside objectives. Basis levels are firm around the country and there is still concern about a lower yield estimate in the November report, which is keeping the market supported. It would be great to see more daily sales announcements, but the bulls will have to be content with increasing ethanol production. We have had a tendency to fade the open in the grains, but the $6.50 area should be great support if that happens.
Wheat Estimated Fund Position
Trends
Short Term: Up Net Long Futures and Options: -72149
Long Term: Down Change: +3000
Overnight Trade: Chicago: Z +9 1/4 KC: Z +4 3/4
Opening Calls: 5-10 Higher
The December KW continues to grind higher and the December Minneapolis wheat looks set for a run at the pre-report highs. The wheat is still going to be dependent on the corn for gains because there just isn’t any fresh news out there. Wheat is cheaper than corn in a huge part of the country, but according to USDA we still aren’t going to feed much extra wheat. Time will tell.
Soybeans Estimated Fund Position
Trends
Short Term: Up Net Long Futures and Options: 22596
Long Term: Down Change: -2000
Overnight Trade: X +9 N +8
Opening Calls: 7-10 Higher
The soybeans struggled for a couple of days, but seem to be on track this morning. The beans uncovered good buying interest early yesterday and had follow through buying overnight. Like the other markets, the bulls could stand to see better export news to create some enthusiasm, but the threat of a lower yield estimate will at least keep the market supported. A close above $12.45 in the November contract would be very friendly.
Live Cattle
Trend
Short Term: Up
Long Term: Up
Opening Calls: 30-50 Higher
Live cattle futures closed lower to sharply lower in all but the October contract on Thursday. Hedge pressure was seen in the deferred contracts, while October was supported by better cash trade in the plains. Most of the cash trade ranged from $121‐$122 in the south, with dress prices as high as $193 up north. The active cash trade at higher prices has the overnight trade pressing higher across the board. Bull spreading remains a feature, as traders continue to anticipate larger supplies in the coming couple of months. This afternoon’s on feed report is expected to be supportive.
Feeder Cattle
Trends
Short Term: Up
Long Term: Up
Opening Call: 40-60 Higher
Feeder cattle futures closed mixed on Thursday, with trading ranges of 1.50 in the front few months. Strong trade in the corn market and weaker deferred live cattle kept the market from closing any stronger. Overnight looks supportive, with higher live cattle and improving outside markets helping. Nearly 10 cent gains in corn overnight could cap feeder rallies. The lower expectations for placements in the 2 pm report should put support under the market today.
Schwieterman: Corn market stronger, Live cattle higher
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