Corn                                  Estimated Fund Position
Trends
Short Term: Down            Net Long Futures and Options: 253761
Long Term: Down            Change: -15000
Overnight Trade: N-7 Z -1 1/2
Opening Calls: 5-7 Lower

Yesterday’s gains didn’t last long. The July corn didn’t take out yesterday’s low yet, but it definitely looks like it will be tested. Export sales were very poor again at 284,200 MT and many traders believe that USDA will cut the export estimate in next week’s supply and demand report. Yesterday’s ethanol production figure was lower than expected as well so we have lots of talk that price has successfully rationed demand. The $7.01 level is becoming a more and more likely downside target for the July contract.

Wheat                                Estimated Fund Position
Trends
Short Term: Down             Net Long Futures and Options: -12406
Long Term: Down              Change: +1000
Overnight Trade: Chicago: N -5 KC: N -5 3/4
Opening Calls: 5-7 Lower

Despite the poor prospects for the HRW crop the wheat market is pushing lower. A lot of the pressure has to do with general commodity long liquidation and not so much with wheat market fundamentals. Current supplies are adequate so traders aren’t too concerned with production problems right now. Eventually wheat will become the upside leader of the market place because a year from now we will not have adequate stocks and endusers will have to bid up for supplies.

Soybeans                           Estimated Fund Position
Trends
Short Term: Down              Net Long Futures and Options: 68203
Long Term: Down              Change: -6000
Overnight Trade: N -11 X-12
Opening Calls: 10-15 Lower

The July soybeans are at the bottom end of the recent trading range testing critical support. Export sales were poor with old crop at only 21,000 MT. With slack export demand and ideas of acreage being switched to soybeans this market is struggling. A close below $13.28 would point to a move down to $12.75 in the July contract.