Corn                                          Estimated Fund Position
Short Term: Up                       Net Long Futures and Options: 188823
Long Term: Up                        Change: -2000
Overnight Trade: Z +1 @7:30 AM

After one week of good export sales, the corn was back to normal at 236,100 MT. On the charts, the market is approaching the October highs, but is overbought and traders will be watching for a loss of upward momentum. Other than the export sales, fresh news is limited. $7.76 still looks like a probable upside target, but taking out yesterday’s low on a break today would put an end to this rally.

Wheat                                      Estimated Fund Position
Short Term: Up                       Net Long Futures and Options: -14005
Long Term:Up                        Change: +2000
Overnight Trade: Chicago: Z +2 KC: Z +2 @7:30 AM

Wheat export sales were poor at 279,300 MT. The wheat has posted strong gains this week due to dry weather in the HRW Belt and the hopes of better export sales. The weather pattern hasn’t changed, and probably won’t in the near future, but we are still waiting for consistently good export sales. Look for a day of consolidation trade in the wheat.

Soybeans                                     Estimated Fund Position
Short Term: Up                           Net Long Futures and Options: 88779
Long Term: Down                      Change: -2000
Overnight Trade: F +12 @7:30 AM

Soybean export sales were adequate at 319,100 MT, the meal and oil, however, were outstanding. Overall traders should be impressed with the demand in the soybean complex. On the chart, the January contract made another new high for the move today and it still appears that the market is on its way to the $15.00 level in the near term. Buy breaks when we get them.

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

Live cattle futures closed 50-70 lower on Wednesday, with most of the selloff coming late in the session. That pattern has been evident all week, with early strength and late selling. This morning is starting the same way, with the market still unsure of what this weeks’ cash will do. Cutouts were higher on Wednesday, but we are not seeing much strength considering how much the kill has been cut. One report this morning indicated cow meat was being dumped at much lower levels to get rid of it. Bids appear near $125, with asking prices near $130.

Feeder Cattle
Short Term: Up
Long Term: Down
Opening Call: Mixed

Feeder cattle futures were moderately to sharply lower on Wednesday, with January taking out the previous four days lows. Both feeders and corn traded both sides of unchanged in the night session. We look for choppy trade to continue, with a lower bias into the first of the month. Dryness is expected to continue in wheat pasture country through the 10th of December.