Corn                                                Estimated Fund Position
Trends
Short Term: Up                            Net Long Futures and Options: 90887
Long Term: Up                             Change: +3000
Overnight Trade: N +15 Z +8 @7:15 AM
Opening Calls:

Corn stocks were friendly at 3.144 billion and the acreage was slightly negative at 96.4 million. The way the weather has been some will make the case that we actually need those extra acres because yield is declining so rapidly. Basically, this report is already history and we will quickly go back to trading weather, which is still bullish.

Wheat                                              Estimated Fund Position
Trends
Short Term: Up                               Net Long Futures and Options: -37713
Long Term:Up                                 Change: -3000
Overnight Trade: Chicago: N +8 KC: N +10 @7:15 AM
Opening Calls:

Wheat stocks were slightly higher than expected, which is not a market mover. Acreage was up from last year at 56 million, but that was lower than expected, which is supportive. Wheat will continue to follow the corn, the new fundamentals are just not enough to make the wheat move independently. $7.60 - $7.80 will still act as major resistance for the September contract.

Soybeans                                         Estimated Fund Position
Trends
Short Term: Up                               Net Long Futures and Options: 179294
Long Term:Up                                 Change: -5000
Overnight Trade: N +17 X +13 @7:15 AM
Opening Calls:

The soybean numbers weren’t very friendly with higher than expected stocks at 667 million and higher than expected acreage at 76.1 million. If the weather was good this would be a very bearish acreage report, but the weather isn’t good. Expect further declines in crop condition ratings. A move though $14.40 in the November beans would probably begin another leg higher.

Live Cattle
Trend
Short Term: Down
Long Term: Down
Opening Calls: Mixed

Live cattle futures closed sharply higher on Thursday, and still no significant cash trade development. Today is the last trading day for the June contract, which is currently modestly above last weeks’ southern cash highs. Outside markets look very supportive today, with equities sharply higher and the Dollar off 90 points. This morning’s quarterly grain report could be a market mover. Weather remains detrimental to weight gain, due to the sweltering heat. Short term trends have turned up.

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

Feeder cattle futures posted triple digit gains on Thursday, as the market is choosing to follow fats higher, rather than be pressured by the higher corn values. This morning’s grain report will still be key to near term movement in the feeders. Trends remain lower, while timing should be improving. Check in after the grain report is released.