Corn                                    Estimated Fund Position
Short Term: Up                 Net Long Futures and Options: 293380
Long Term: Up                  Change: +12000
Overnight Trade: Z -5 @7:30 AM

The December corn closed at the highest level ever, but didn’t quite reach the spike high of $8.49. There was no follow through buying overnight because the Pro Farmer data was not nearly as bullish as it was the day before. Today will be the most important day of the tour since most of the time will be spent in Iowa and Illinois. The momentum of the market is up and I think we will see a run at $8.50 today. The Pro Farmer data will likely dictate whether or not the market closes over $8.50 this week.

Wheat                                 Estimated Fund Position
Short Term: Up                  Net Long Futures and Options: 31840
Long Term:Up                    Change: +4000
Overnight Trade: Chicago: Z -8 KC: Z-8 @7:30 AM

The wheat posted solid gains yesterday, but saw some profit taking overnight due to the set back in the corn. The December KW should be making a run at the $9.50 level this week and a close above $9.50 would suggest a move over $11.00 in the near future. Any hint of fresh demand would be very bullish.

Soybeans                              Estimated Fund Position
Short Term: Up                    Net Long Futures and Options: 222517
Long Term:Up                      Change: +12000
Overnight Trade: Z -10 @7:30 AM

The November soybeans closed solidly above $17.00 making $18.00 the next upside objective. $17.00 should now be solid support for the market. Crush margins are positive and Chinese prices are still well above ours, so any break will result in fresh export demand. Buy breaks if we get them.

Live Cattle
Short Term: Up
Long Term: Up
Opening Calls: Mixed

Live cattle futures closed sharply to moderately lower on Tuesday, led by weakness in the August contract. The continued deliveries against the August have traders questioning whether the recent climb in cash trade can continue. Last night saw no new postings and all 36 retendered loads were demanded. This news brought overnight strength to the August, with bull spreading back in vogue. Cash asking prices remain firm at $123 in the south and $195+ up north.

Feeder Cattle
Short Term: Up
Long Term: Down
Opening Call: Mixed

Feeder cattle futures posted triple digit declines on Tuesday, as corn strength over the past 5 days finally overcame optimism in the pit. Overnight has modest weakness in corn adding some small premium back into the feeders. After last week’s upside breakout the feeders have moved back into the month long trading range they had previously been stuck in. Numbers remain tight, which will support breaks, but corn prices don’t appear ready to give up their strength anytime soon.