Corn                               Estimated Fund Position
Trends – July Contract
Short Term: Up              Net Long Futures and Options: 61035
Long Term: Up               Change: +25000
Overnight Trade: N -3 @7:30 AM

The July corn posted a midrange close yesterday and then saw weakness overnight. Weakness in the outside markets and strength in the stock market suggest that traders aren’t nearly as concerned about the happenings in Ukraine as they were yesterday. Yesterday’s low will be an important support level to watch, followed by trend line support near $4.61.

Wheat                             Estimated Fund Position
Trends – July Contract
Short Term: Up               Net Long Futures and Options: -45669
Long Term:Up                 Change: +15000
Overnight Trade: Chicago: N -7 KC: N -6 @7:30 AM

Wheat was very strong yesterday, but the close, and the subsequent overnight trade has been at the middle of yesterday’s trading range. Chaos in the Ukraine is certainly supportive, but it remains to be seen whether tensions will escalate or not. There has to be a credible threat of US exports increasing or Ukrainian wheat production decreasing in order to keep the market moving higher. Crop condition ratings declined with Kansas not at only 34% Good to Excellent and Texas at 15% Good to Excellent. The declining crop conditions will provide a great deal of support if it comes along with more exports.

Soybeans                        Estimated Fund Position
Trends – July Contract
Short Term: Up               Net Long Futures and Options: 184619
Long Term:Up                 Change: -4000
Overnight Trade: N +4 @7:30 AM

The soybeans traded in their own world yesterday, since the problems in the Ukraine don’t have much impact on the beans. The July contract still hasn’t fully recovered from Thursday’s spike higher and failure. The bean market is ripe for a setback as long as we don’t see any large old crop export sales. Pull backs will be a buying opportunity in the old crop until we get the old crop stocks situation resolved.

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

Live cattle futures closed moderately lower to moderately higher on Monday, with the lead April contract the lone loser for the day. August and beyond posted new contract highs and June closed at its’ highest level to date. Cutout values were sharply higher, with choice up 3.79 for the day. Overnight activity is trending slightly better in the front months, with deferred narrowly mixed. Cash is quiet and the situation in Ukraine seems to be more subdued this morning. Show lists are smaller overall, with our list actually up about 8% from week ago levels.

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

Feeder cattle futures closed steady to modestly higher on Monday, which was a good performance considering the strength in the corn market. Overnight trade is mixed so far, with trade within .25 of unchanged in each contract month. Corn prices have given back most of Monday’s gains, which should add support to the feeders. The cash index was up for the third day in a row but the daily number for Friday and Saturday sales came in about 2.50 under the current 7-day index.