Corn                                     Estimated Fund Position
Trends
Short Term: Down               Net Long Futures and Options: 160796
Long Term: Down                Change: +16000
Overnight Trade: U -7 3/4 Z -9
Opening Calls: 7-10 Lower

The corn was weaker overnight primarily due to pressure from the outside markets. The US Dollar Index is sharply higher and the stock futures are sharply lower. The forecasts, however, are potentially threatening with very high temperatures moving into the Corn Belt later this week. As long as tomorrow’s report isn’t more bearish than expected, it will be the forecasts that move the market this week.

Wheat                                Estimated Fund Position
Trends
Short Term: Down             Net Long Futures and Options: -48255
Long Term: Down              Change: +3000
Overnight Trade: Chicago: U -15 3/4 KC: U -19 1/4
Opening Calls: 15-20 Lower

It didn’t take long for the September KW to get back to last week’s low. The combination of outside market pressure and ideas that tomorrow’s report will continue to show we have plenty of wheat available make it very difficult for the wheat to sustain strength regardless of how oversold the market is. As long as the market stays above $6.95, there is some hope of a recovery effort.

Soybeans                            Estimated Fund Position
Trends
Short Term: Up                   Net Long Futures and Options: 31501
Long Term: Down               Change: +5000
Overnight Trade: U -8 1/4 X-7 1/2
Opening Calls: 7-10 Lower

The soybeans are working on moving to the top of the multi-month trading range. The new crop soybeans have a good shot at a friendly report tomorrow and hot forecasts are supportive as well. Two sided trade is likely today and I give the soybeans the best chance at a positive close.

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

Live cattle futures rose 1075 for the week in the lead August contract. Feedlots once again managed to wait for higher cash prices into weeks end. This weeks’ asking price will likely range from $116‐$117 in the south and $188+ in the north. Outside markets appear to be negative heading into the livestock opening. The Dollar is sharply higher and equities sharply lower.

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

Feeder cattle futures gained more than 3.00 in the lead August contract for the week. The gains came in spite of the .28 rally in the September corn contract. Tightening supplies and new buyers entering the market continue to support. Overnight corn prices were off 8‐10 cents, which should help balance the weaker economic undertone. Charts appear due for a correction of some nature. Probably not too deep.