Corn                                                    Estimated Fund Position
Trends
Short Term:Down                            Net Long Futures and Options: 218070
Long Term: Down                            Change: +3000
Overnight Trade: Z -1 @7:30 AM

The corn market is set for another directionless trading day. Fresh news is limited. Harvest is nearly half done and yields are still poor, but so are export sales. The Dollar is building on last week’s gains, which won’t help the Ag markets either. Plan on two sided trading today. There is no reason to get excited about the corn until the market moves out of the recent range.

Wheat                                                 Estimated Fund Position
Trends
Short Term: Down                            Net Long Futures and Options: 5964
Long Term:Up                                    Change: +3000
Overnight Trade: Chicago: Z -7 KC: Z-8 @7:30 AM

The wheat started the overnight trade with follow through buying, but the trade quickly turned two sided. By the end of the day the wheat probably still has the best chance at a positive close due to the improving world supply and demand outlook. The Russians are probably out of wheat, which means our exports should improve soon. Buy breaks when we get them. A close over $9.50 this week in the December KW would be very bullish.

Soybeans                                             Estimated Fund Position
Trends
Short Term: Down                              Net Long Futures and Options: 164413
Long Term: Down                               Change: -3000
Overnight Trade: X -16 @7:30 AM

The soybean market took another hit overnight. $15.80 is good support in the November contract and the overnight low was $15.90. There is talk of better than expected yields, but unless production is drastically higher we are going to use everything we produce. If production isn’t drastically higher then prices are too low. Last week’s huge break has succeeded in creating more demand, which means the market is not doing its job of slowing demand. Plan on higher prices down the road.

Live Cattle
Trend
Short Term: Up
Long Term: Up
Opening Calls: 20-50 Higher

Live cattle futures closed mixed to mostly higher on Friday, ahead of the on feed report. The report showed 99% on feed, 89% placed and 95% marketed. The numbers are friendly to the Feb-April time frame, with marketing totals negative to the front end. Placements were particularly low in the under 600 lb category, where they were down 33%. A retest of contract highs in the 2013 contracts is a good possibility. Outside markets are pointing to a risk off day, with the Dollar higher and equities backing off.

Feeder Cattle
Trends
Short Term: Up
Long Term: Up
Opening Call: 20-50 Higher

Feeder cattle futures rallied on Friday, with modest gains for the week. The lower than expected placements should be supportive. Overnight corn values were modestly lower. Look for feeders to remain range bound over the near term.