Corn Estimated Fund Position

Trends – December Contract

Short Term:Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: Z Unch @7:30 AM

The December corn traded in a tight range overnight, but in fairly heavy volume. So far yesterday’s low of $3.51 ¼ has held as support, but it probably won’t make it through the day. Yesterday’s new contract low suggests further weakness and we now have to look for a move to the $3.20 - $3.30 area and we will see more and more traders talking about a move below $3.00. Sell rallies.

Wheat Estimated Fund Position

Trends – December Contract

Short Term: Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: Chicago: Z -3 KC: Z +4 @7:30 AM

The December KW fell to a new contract low, just like the corn and beans. The new low makes the $6.00 level the next downside target for the December contract or perhaps where ever the September contract goes off the board. There is still discussion of the shrinking Australian crop, but right now traders are more concerned with the falling corn and soybean prices.

Soybeans Estimated Fund Position

Trends – November Contract

Short Term: Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: X -4 @7:30 AM

Like the corn, the soybeans haven’t taken out yesterday’s low yet, but it looks inevitable. The only hope in the short run for the bulls is an early freeze and that doesn’t look very likely at the moment. The November contract is closing in on the $10.00 level and we must assume that we will reach that level soon. Selling rallies until harvest is over looks like the best plan.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: Higher

Live cattle futures closed sharply higher on Wednesday, reaching limit higher in the October contract on the close. Overnight trade has continued to see sharply higher trade, with October reaching limit higher once again. Deferred contracts are varied, with bull spreading an obvious pattern in this current sprint higher. Cutout values were higher on Wednesday, and cash expectations are now sharply higher than they were just a couple days ago. Asking prices of $158-$160 are now common place in southern yards, with the board racing into the 158+ area. Open interest gained 5,627 contracts on Wednesday’s rally.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: Higher

Feeder cattle futures closed sharply higher on Wednesday, with most of the active contracts reaching limit up in the afternoon session. Overnight trade is sharply higher, with September leading with gains of nearly 2.00 for the session. Corn broke out to the downside on Wednesday and is trading just narrowly mixed overnight. Cash index levels are on the rise and could be into the 225.00+ area by Monday. Volatility is back in the livestock complex.