Corn                                          Estimated Fund Position
Trends
Short Term: Up                       Net Long Futures and Options: 114997
Long Term: Up                        Change: +4000
Overnight Trade: H -5 1/2 Z -3
Opening Calls: 3-5 Lower

The corn traded both sides of unchanged again overnight and finished the session at the low end of the range. The market is still stuck inside Monday’s trading range and will likely stay that way during the day session as well. Tomorrow is the all important January supply and demand report and it wouldn’t be surprising to see strength going into the close today in anticipation of a friendly report tomorrow.

Wheat                                       Estimated Fund Position
Trends
Short Term: Down                  Net Long Futures and Options: -73205
Long Term: Up                        Change: -1500
Overnight Trade: Chicago: H -4 1/2 KC: H -3 3/4
Opening Calls: 3-5 Lower

The wheat didn’t post large gains yesterday, but did finish at the top of the trading range again, possibly due to Index fund buying. Look for similar action today. Choppy trade with strength at the close. Fundamentally we won’t see much information out of the report tomorrow and the wheat will merely follow the direction of the corn.

Soybeans                                  Estimated Fund Position
Trends
Short Term: Down                  Net Long Futures and Options: 13419
Long Term: Up                         Change: -3000
Overnight Trade: H -13 X -12 1/4
Opening Calls: 10-15 Lower

Soybeans were weaker overnight due in part to the rain in S. America, but the long term pattern is still threatening to production, which will keep the pressure in check. Expect to see choppy trade today, but look for strength at the end of the session as traders prepare for what could be a friendly report tomorrow, at least in terms of world soybean production and carryout.

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

Live cattle futures closed sharply higher on Tuesday, supported by a weaker Dollar and a 3,200 rise in open interest. Higher cutout values added support, while demand remains tepid for the week. Overnight activity was mostly negative, with the market backing off .30‐.40 in light trade. The Dollar has firmed overnight, creating some profit taking in commodities. Cash trade could manifest earlier this week, if packers are as short bought as many expect.

Feeder Cattle
Trends
Short Term: Up
Long Term: Up
Opening Call: 10-30 Lower

Feeder cattle futures posted triple digit gains on Tuesday, with all but the January posting their highest closes ever. Flat corn prices and sharply higher live futures supported the feeders. Cash strength continues to put a solid floor under futures pricing. Overnight saw prices back off modestly, following the live cattle. Corn values in the electronic trade were off a nickel, offering underlying support for the feeders.