Corn                                         Estimated Fund Position
Short Term: Up                       Net Long Futures and Options: 39453
Long Term: Up                       Change: +11000
Overnight Trade: N -1/4 Z Unch
Opening Calls: Mixed

The July corn closed back above the 50-day moving average Friday. Export demand has been good, which means USDA will probably increase the export estimate and cut ending stocks in the next supply and demand report. Traders will also be watching this afternoon’s crop condition report closely, as any indication that we will fall short of USDA’s yield estimate would be very supportive.

Wheat                                      Estimated Fund Position
Short Term: Down                  Net Long Futures and Options: -51650
Long Term: Down                  Change: +2000
Overnight Trade: Chicago: N -2 3/4 KC: N -3 1/4
Opening Calls: 2-4 Lower

The July KW traded both sides of unchanged overnight and at one point nearly reached the critical resistance at $5.00. The wheat still has no reason for independent strength and will need consistent gains in the corn in order to move through $5.00. Plan on a choppy session today and look for traders to use the wheat as the short leg of spreads, especially as the July KW nears the $5.00 area.

Soybeans                                 Estimated Fund Position
Short Term: Down                 Net Long Futures and Options: +11684
Long Term: Down                  Change: -2000
Overnight Trade: N +5
Opening Calls: 5-7 Higher

The July soybeans are still trading sideways. Short term technical indicators are beginning to turn up, but the $9.50 - $9.51 area will be a key resistance area today. A close above $9.51 would have the July beans above trend line resistance and above the recent trading range. Bull spreaders were active most of last week and may be again this week due to the strong up front demand.

Live Cattle
Short Term: Down
Long Term: Down
Seasonal: Down
Opening Calls: Mixed

Live cattle futures closed nixed on Friday, ahead of the monthly on feed report, with June modestly lower and deferred contracts higher. For the week August live cattle closed 1.50 lower, which was modest considering the weakness in outside markets. The report showed 3% less on feed, 2% higher placements and 1% lower marketings than a year ago. The numbers remain supportive, with tight supplies projected for the foreseeable future. Overnight saw weakness return to the equity and foreign currency markets, which could reduce recovery efforts in the meats.

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

Feeder cattle futures closed 3.00 lower for the week in the active August contract, falling into our key support level of 109.40 on Friday morning. The feeders closed modestly lower on Friday, but more than .70 off of session lows. Late week strength in the corn futures, based off of Chinese demand, added to weakness in the feeders as the week progressed. Overnight corn prices were mostly steady. Weakness in equity and other outside markets have had more effect on cattle than on the grains. Opening calls are mixed to lower.