Corn                                      Estimated Fund Position
Trends
Short Term: Down             Net Long Futures and Options: 219141
Long Term: Down             Change: -25000
Overnight Trade: Z +3 3/4 N +5 1/4
Opening Calls: 3-5 Higher

The $7.10 support failed in the December corn yesterday, leading to the lowest close in over a month. For today, support lies at yesterday’s low of $7.00 ¼ and then at the $6.95 area. Failure there would lead to a move down to the $6.70 area. The market is oversold, so there is potential for a short covering bounce headed into the weekend, but the momentum of the market is clearly down.

Wheat                                 Estimated Fund Position
Trends
Short Term: Down          Net Long Futures and Options: -44949
Long Term: Down          Change: -3000
Overnight Trade: Chicago: Z +5 1/2 KC: Z +1
Opening Calls: 3-5 Higher

The December KW looks like it may have bottomed out yesterday. The push down towards $7.70 followed by the positive close looks decent on the charts. There hasn’t been any major fundamental change that would suggest a turnaround in the market, but we have seen a $1 break without much relief, so a short covering bounce would be reasonable. Look for a move back up to $8.35 in the December KW in the next few sessions.

Soybeans                          Estimated Fund Position
Trends
Short Term: Down          Net Long Futures and Options: 117345
Long Term: Down          Change: -8000
Overnight Trade: X +7 1/4 N +8 3/4
Opening Calls: 7-10 Higher

The November soybeans nearly reached the $13.50 objective yesterday. There was a bounce overnight, but looking at the progression of lower lows and lower highs doesn’t lend too much optimism. Like the other markets, some short covering it very likely today, but there isn’t much indication that the market has bottomed yet.

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

Live cattle futures scored a large reversal on Thursday, with the lead October contract falling more than 2.00 on the close. The weaker futures market didn’t seem to discourage cattle feeders, who stuck to their higher asking prices in most cases. Some cattle traded in the north at steady money with last weeks’ highs. Most show lists remain intact, with asking prices holding @ $119‐$120 in the south and $190+ in the north. Overnight futures prices are firmer, as traders expect the cash trade to improve.

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

Feeder cattle futures followed the fats lower on Thursday, in spite of the sharply lower corn prices. The lack of cash strength for the week appears to be putting a bit of a lid on feeder futures. Overnight activity is firmer in both the corn and the feeders, with the October contract gaining back at least half of Thursday’s decline. Choppy trade, with an upward technical bias is to be expected.