Corn Estimated Fund Position

Trends – December Contract

Short Term: Up Net Long Futures and Options:

Long Term: Up Change:

Overnight Trade: Z -4 @7:30 AM

The corn was lower overnight, but we have seen these Sunday night breaks turn into Monday rallies several times recently, so I don’t think we can count on weakness through the day. We are just a week away from the November supply and demand report and expectations are for a higher yield estimate, so that may weigh on the market this week. The fundamentals of the market will probably take the corn lower eventually, but for the moment the momentum of the market is still up and sellers need to be cautious.

Wheat Estimated Fund Position

Trends – December Contract

Short Term: Up Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: Chicago: Z -5 KC: Z -4 @7:30 AM

The 40-day moving average has held the December KW on three occasions recently with Friday being the last time. Today’s action will be very important from a chart stand point. A failure at the 40-day moving average will be yet another indication that this market is headed back to $5.50. The market is not particularly oversold and the market seems to have lost its upward momentum, but the bears will need to see a major technical failure before chasing the market lower.

Soybeans Estimated Fund Position

Trends – November Contract

Short Term: Up Net Long Futures and Options:

Long Term:Up Change:

Overnight Trade: F -10 @7:30 AM

The soybeans could peak at any time and the pressure overnight will probably entice some sellers, but these Sunday night breaks have not been kind to the bears. If we end up with a negative close in the December meal and the January beans, then maybe the top is in, but until something like that happens there is no sense in trying to pick a top.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: Mixed

Live cattle futures closed sharply lower in the front two months on Friday, with December finishing .85 lower for the week. Packer margins improved modestly for the week but they appear pretty short bought heading into this week. The Dollar remains firm, which may prove a limiting factor in the export market. Numbers are set to remain very tight through the end of the year.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: 20-40 Higher

Feeder cattle futures closed near unchanged on Friday and were unchanged for the week in the Lead November contract. Overnight weakness in the corn futures should act as a boost for the feeders on this morning's opening. Cash index levels were up all five days last week and remain nearly 6.00 premium to the spot futures contract.