Corn Estimated Fund Position
Short Term: Down Net Long Futures and Options: 81490
Long Term: Down Change: Unch
Overnight Trade: Z -11 3/4 N -11 1/2
Opening Calls: 10-12 Lower
The outside markets are pressuring the grains. Negative world economic news is turning this into a “risk off” day. The December corn made a new low for the move and still appears to be headed to the October low. The Chinese have purchased corn at this level before and supported the market, but at the moment, there aren’t even rumors of Chinese buying. This market will have a weaker bias until we have better news.
Wheat Estimated Fund Position
Short Term: Down Net Long Futures and Options: -87755
Long Term: Down Change: -2000
Overnight Trade: Chicago: Z -12 1/4 KC: Z -7 1/2
Opening Calls: 10-15 Lower
If the corn can’t move higher, then the wheat has no chance at all. The December KW has an ominous looking progression of lower lows and there is nothing in the news to support the wheat. Technical indicators are oversold, but that isn’t a good reason to buy when momentum is clearly lower. Sell calls or any rallies.
Soybeans Estimated Fund Position
Short Term: Down Net Long Futures and Options: -18480
Long Term: Down Change: +2000
Overnight Trade: F -14 1/4 N -15 1/4
Opening Calls: 12-15 Lower
The January soybean contract showed some signs of life yesterday, but made a new low for the move overnight and is once again testing the bottom of the trading channel. The outside day down in overnight trade looks very negative, but I would give the beans the best chance at the best close since the overnight low is at a good support level. Unfortunately this market won’t be fed any good news until Friday’s export sales report, so I don’t expect much out of this market today.
Short Term: Down
Long Term: Up
Opening Calls: 30-50 Lower
Live cattle futures closed sharply higher on Tuesday, reversing nearly all of Friday’s weakness and rebuilding feedlot resolve to hold for steady to better cash this week. Outside influences are negative this morning as Euro concerns heighten. Dollar strength appears to be more prevalent than equity weakness, so far this morning. We still expect cash trade to develop as the day goes by, near steady with week ago levels.
Short Term: Up
Long Term: Up
Opening Call: Mixed
Feeder cattle futures traded sharply higher on Tuesday, following the fats higher as the day
progressed. Overnight weakness is taking back about half of the Tuesday’s gains. Corn prices are sharply lower overnight, putting in new lows for the current move. We continue to expect some selloff into early December, in spite of solid fundamentals. Outside influences remain negative on a worldwide level.