Corn                                                     Estimated Fund Position
Short Term: Up                                 Net Long Futures and Options: 232605
Long Term: Up                                  Change: +13000
Overnight Trade: Z+4 @7:30 AM

The December corn posted solid gains yesterday and had some follow through buying overnight, which pushed the market through the 9-day moving average. The market is basically at the middle of the recent range and there is a good chance that we see a test of the $8.25 area by tomorrow’s close. So far, however, there is little indication that the market is about to change its sideways pattern. Export sales were poor at 122,800 MT of old crop and 130,600 MT of new crop sales.

Wheat                                                    Estimated Fund Position
Short Term: Down                               Net Long Futures and Options: 14327
Long Term:Up                                      Change: +3000
Overnight Trade: Chicago: Z +17 KC: Z+14 @7:30 AM

Export sales were a disappointment at 396,700 MT thanks to large cancellations by “unknown destinations.” However the market is firm this morning thanks to continuing bad news out of Russia and thoughts that we will eventually seem them curtail exports and we will see more demand. The bulls need to see the December KW move through the $9.00 level in order for that market to look like a buy again.

Soybeans                                                Estimated Fund Position
Short Term: Down                                Net Long Futures and Options: 210985
Long Term:Up                                        Change: +9000
Overnight Trade: Z+2 @7:30 AM

Soybean export sales were great with 97,200 MT of old crop and 924,600 MT of new crop sales. China was the big buyer of both old crop and new crop beans and the quantities show how poorly the market is rationing demand. New crop sales commitments now total 53% of the year’s expectations, so we don’t have to sell much each week from here forward. November soybeans will be near $17.00 very soon.

Live Cattle
Short Term: Up
Long Term: Up
Opening Calls: Mixed

Live cattle futures settled narrowly mixed on Wednesday, with August higher and deferred contracts modestly lower. With the end of the week nearing, cash trade should begin to take shape today. Feedlots appear to have the upper hand after seeing a 12.00 rise in boxed beef prices over the past seven trading days. Overnight trade has been two sided in a narrow range. 43 new deliveries were posted against the August contract, with all coming from Worthing Neb.. Friday’s on feed report is expected to show 100.7% on feed, 91.4% placed and marketings of 101.6%.

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

Feeder cattle futures closed moderately lower on Wednesday, pressured by double digit gains in the corn futures. Prices are weakening again this morning, after trading two sided overnight. Corn is up another 3-5 cents along with softer deferred live cattle. If the placments for July come in as expected on Friday, it would be the second largest placement total for that month in the past 20 years. Unless corn has a major setback, we expect feeders to lose ground to the fats.