Corn                                             Estimated Fund Position
Short Term: Up                          Net Long Futures and Options: 221846
Long Term: Up                           Change: +13000
Overnight Trade: Z +7 @7:30 AM

The corn market finally came alive yesterday afternoon and we saw follow through buying overnight. The December contract made a new contract high which is a good indication this market is headed to $8.50 - $8.60 barring a bearish report tomorrow. Export sales were as expected with 174,700 MT of old crop and 928,300 MT of new crop sales. Look for short covering today as traders prepare for what should be a massive cut in production in tomorrow’s report.

Wheat                                           Estimated Fund Position
Short Term: Up                            Net Long Futures and Options: 16569
Long Term:Up                              Change: +3000
Overnight Trade: Chicago: Z+7 KC: Z +6 @7:30 AM

The December KW has made three consecutive higher closes this week and is now working through the top of the wedge formation. Export sales were good at 665,300 MT, making 3 of the past 4 week’s sales totals that have been very good. We really need to keep as much wheat here as possible for feed purposes, so good export sales could turn the wheat market into the upside leader.

Soybeans                                       Estimated Fund Position
Short Term: Down                       Net Long Futures and Options: 189709
Long Term:Up                               Change: +6000
Overnight Trade: X +13 @7:30 AM

Soybean export sales were as expected with 105,200 MT of old crop and 195,000 MT of new crop sales. We have had daily announcements for 2 days in a row, so next week’s export sales report will be good. The recent break in prices has allowed the buyers to step in, which is something that will continue to happen each time we have a break. Buy pull backs.

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

Live cattle futures powered their way to their strongest close in over 2 ½ months in the August contract on Wednesday. Sharply higher beef prices, along with new commercial and technical buying supported the gains. October posted its’ second highest close since the middle of May, as bull spreading became a feature in the daily trade. Cash trade is yet to materialize, with bids and offers a good $4-$5 apart at midweek. Outside markets are mixed, with the Dollar and equities modestly higher.

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

Feeder cattle futures closed with triple digit gains on Wednesday, in spite of the record high close in the corn futures. Strength in the fat market, along with improving cash interest and a slowly improving technical picture inspired short covering and some renewed buying interest. Overnight trade saw additional strength in the corn and narrowly mixed trade in the feeders. Look for recent highs to be stiff resistance until more is known about corn production.