Corn                                        Estimated Fund Position
Trends
Short Term: Down                Net Long Futures and Options: 240141
Long Term: Up                      Change: -23000
Overnight Trade: Z -4 1/2 N -5 3/4
Opening Calls: 5-7 Lower

The corn was much weaker than expected yesterday and the December contract posted an outside day down on the chart. Furthermore the corn was weaker again overnight and seems to be targeting the $7.07 - $7.11 area as the next downside target. The market is becoming oversold, but it looks like we should plan on more weakness until we see some bullish demand news or more poor yield reports.

Wheat                                     Estimated Fund Position
Trends
Short Term: Down              Net Long Futures and Options: -43449
Long Term: Down               Change: -5000
Overnight Trade: Chicago: Z +2 3/4 KC: Z -6 1/4
Opening Calls: Mixed

Support levels are rapidly failing in the December KW. Yesterday the market fell below the 50-day moving average and overnight the $8.00 support failed. So far the market has a string of 9 consecutive lower lows and 5 consecutive lower closes. The market is oversold and could have a corrective bounce at any time, but otherwise the wheat is devoid of bullish news and $7.70 appears to be the next downside objective.

Soybeans                               Estimated Fund Position
Trends
Short Term: Down               Net Long Futures and Options: 129345
Long Term: Up                     Change: -4000
Overnight Trade: X -4 3/4 N -6 1/4
Opening Calls: 5-7 Lower

The November soybeans made a new low for the move overnight, but finished the session mid range. So far today the 50-day moving average is holding as support, but the $13.50 area is still a viable downside target unless we come up with some bullish news. There have been some concerns about freezing temperatures that have supported the soybeans, but it remains to be seen if there will actually be damage. At the very least we should plan on a retest of the overnight low.

Live Cattle
Trend
Short Term: Up
Long Term: Down
Opening Calls: 20-40 Higher

Live cattle futures closed steady to sharply higher on Tuesday, with the active December contract gaining over 1.00 for the day. Overnight saw additional strength in the fats, with most contracts between .20‐.50 higher. Cutout values were sharply higher again on Tuesday and packers continue to kill at an aggressive pace. Bids of $114‐$115 remain well below asking prices of $120. Outside markets look supportive, with a flat Dollar and higher equities.

Feeder Cattle
Trends
Short Term: Up
Long Term: Down
Opening Call: 30-50 Higher

Feeder cattle futures broke out above key resistance on Tuesday, as sharply lower corn prices spurred new buying in the feeders. Overnight saw more of the same, with corn falling another nickel and feeders gaining .30‐.60. The chart pattern is beginning to look very constructive, which should allow some new speculative money into the feeder pit. Old resistance is now support, near 136.25 basis the October contract.