Corn                                         Estimated Fund Position
Trends
Short Term: Down                   Net Long Futures and Options: 253761
Long Term: Down                    Change: -15000
Overnight Trade: N +1 Z - 1/4
Opening Calls: Mixed

Yesterday the July corn held above the 50-day moving average, but dipped below that level overnight in very quiet two sided trade. The 50-day moving average will be watched very closely today and failure of that support during the day session would point to a move down to the bottom of the gap at $7.01 in the July contract. There is still concern about the planting progress, which is supportive to the December contract and very detrimental to the bull spreads.

Wheat                                      Estimated Fund Position
Trends
Short Term: Down                    Net Long Futures and Options: -12406
Long Term: Up                         Change: +1000
Overnight Trade: Chicago: N -4 3/4 KC: N -5 1/2
Opening Calls: 3-5 Lower

The July KW is hovering around the 40 and 50-day moving averages. Day 1 of the wheat tour came up with an average of 40 bu/ac, which was a little surprising since most of the numbers I saw were lower than that. That average should come down today as they move through SW Kansas and northern Oklahoma. The bulls need the July KW to stay above the 50-day moving average today and a close above $9.00 would be very helpful.

Soybeans                                Estimated Fund Position
Trends
Short Term: Down                   Net Long Futures and Options: 68203
Long Term: Down                    Change: -6000
Overnight Trade: N -3 3/4 X-5 1/2
Opening Calls: 3-5 Lower

The soybeans continue to be very erratic. The July contract is now back to the lower end of the trading range. Ideas of slow demand from China and more acres here in the US are applying the pressure. Any hint of good export news would send the market back to the top of the range. We really can’t handle much more demand, so we really can’t have any sustained weakness, so plan on more sideways trade.

Live Cattle
Trend
Short Term: Down
Long Term: Down
Opening Calls: 10-30 Higher

Live cattle futures closed sharply lower on Tuesday, taking out the March lows in the lead June contract. Cash trade became fairly active in most regions on Tuesday afternoon, with most sales posted at $115 in the south and $185‐$186 in the north. The $2.00 drop in the cash market keeps basis levels well over $4.00. Cash and higher cutout values, along with greater chain speed should be constructive for the futures market. Overnight trade is seeing a modest bounce in price.

Feeder Cattle
Trends
Short Term: Down
Long Term: Down
Opening Call: 10-30 Higher

Feeder cattle futures posted triple digit losses on Tuesday, with the May and August contracts testing their respective April lows. Overnight action is showing some moderate recovery, with prices as much as .45 higher at this time. Corn prices closed narrowly mixed overnight and May futures are now 2.00 below index levels. A bounce from these levels could offer fresh selling opportunities.