Corn Estimated Fund Position

Trends – December Contract

Short Term:Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: Z -7 @7:30 AM

The corn traded both side of unchanged overnight, but by the end of the session the market had given up the bulk of Friday’s gains and the December contract was back below $3.50. The forecasts for the upcoming week are warmer than what we saw Friday, which takes away the threat of an early frost. The market will remain sensitive to the forecasts this week, but we also have to deal with the September supply and demand report, which should be bearish. My opinion is that we see the December corn head to $3.35 this week.

Wheat Estimated Fund Position

Trends – December Contract

Short Term: Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: Chicago: Z -9 KC: Z -9 @7:30 AM

The wheat got crushed by the end of the overnight session and the December KW is right back to trading just above the recent lows. There isn’t much going on in Ukraine and there is pressure in the corn and soybeans, which is weighing on the wheat market. As usual, what this market needs more than anything is some good demand news to take the focus off of the corn and soybeans, but a stronger Dollar isn’t going to help that.

Soybeans Estimated Fund Position

Trends – November Contract

Short Term: Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: X -7 @7:30 AM

The soybeans are in a similar situation to the corn. If there isn’t a freeze threat there isn’t too much to worry about when it comes to soybean production. Crop condition ratings will be near steady this afternoon and Thursday’s supply and demand report will be bearish. Plan on new contract lows this week.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: 25-50 Higher

Live cattle futures finished off a monster week on Friday, with sharply higher closes and historic gains in the cash market. For the week October futures were up 8.60, which was just enough to keep pace with the surging cash market trade. Kansas traded cattle as high as $163, after rising to $155 just a week before. Cutouts started to see increases the last two days of the week but packer margins certainly narrowed for the period. Futures should resume their positive mode at 9:05 this morning. Cash asking prices could easily move into the $166-$168 level as we get into the week.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: 25-50 Higher

Feeder cattle futures followed the lead of the live cattle for the week, closing sharply higher on Friday and October gaining 7.70 from the previous Friday. Corn prices have given up 5 cents in overnight trade, which should provide additional support for the surging feeders. Cash index levels jumped almost 6.00 for the week and are expected to see higher levels to start this week. New spec buying, which had dried up during the month of August appears to be back in play.