Corn Estimated Fund Position

Trends – December Contract

Short Term:Down Net Long Futures and Options: -6483

Long Term: Down Change: -5500

Overnight Trade: Z -1 @7:30 AM

Corn condition ratings improved by 1 point to 73% Good to Excellent. An improvement at this time of year is unusual, especially since the rating are at historically high levels. The ratings improvement will keep traders thinking about record yields. There was a little weakness overnight, but not enough to get the December corn out of the sideways trading pattern it has been stuck in for over a month. Look for a test of $3.58 this week.

Wheat Estimated Fund Position

Trends – December Contract

Short Term: Up Net Long Futures and Options: -68334

Long Term: Down Change: -2000

Overnight Trade: Chicago: Z Unch KC: Z Unch @7:30 AM

Yesterday the December KW gave up Friday’s gains and then did nothing overnight. What we have is a market that stalled out at trend line resistance Friday, failed to take out Friday’s high on Monday, and then collapsed. There isn’t much fresh news for traders to work with, so with pressure in the corn and beans, the path of least resistance is to the downside. Plan on sideways trade today.

Soybeans Estimated Fund Position

Trends – November Contract

Short Term: Down Net Long Futures and Options: -61340

Long Term: Down Change: -5500

Overnight Trade: X -4 @7:30 AM

The November beans made new lows yesterday and again overnight despite the decline in crop condition ratings to 70% Good to Excellent. I guess we have to blame the decline on Kansas, which had the biggest decline in ratings of any state. Since the ratings are still high and the weather is still good there is little incentive to buy new crop soybeans, so we have to look for a move down to the $10.00 area, perhaps even this week.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: Mixed

Live cattle futures closed with triple digit gains in the Oct-Apr time frames on Monday and are trading no worse than mixed in early morning trade. Show lists appear to be slightly smaller overall for the week and cutouts started the week on a positive note. Some outside markets appear to be catching a bid overnight, which could spill over into the livestock. We will be watching the pork complex for signs of life as well.

Feeder Cattle

Trends

Short Term: Down

Long Term: Up

Opening Call: Mixed

Feeder cattle futures posted more than 2.00 gains in all but the spot August contract on Monday. The cash index fell .54 for the day but remains a solid premium to all but the spot August. Corn prices remain nonthreatening, which should continue to support cash and futures pricing. Overall strength of equity markets should provide positive support for the livestock markets.