Corn                                      Estimated Fund Position
Short Term: Up                    Net Long Futures and Options: 44453
Long Term: Up                    Change: +5000
Overnight Trade: N -5 ½ Z -5 3/4
Opening Calls: 3-6 Lower

Corn condition ratings improved to 71% Good to Excellent, which helped to pressure the corn overnight. Improving condition ratings suggest an above trend line yield is more likely and eases new crop supply concerns. The outside markets hurt the corn as well. The US Dollar Index is sharply higher, while the stock futures and crude oil are sharply lower. The corn will start the day under pressure, but the $3.60 - $3.64 support will hold in the July contract, at least through today.

Wheat                                   Estimated Fund Position
Short Term: Down               Net Long Futures and Options: -53650
Long Term: Down                Change: -2000
Overnight Trade: Chicago: N -4 3/4 KC: N -6
Opening Calls: 5-7 Lower

The July KW failed just below the $5.00 resistance and has move lower ever since. The market is back to testing last week’s low and with the negative outside market influences, chances are high that the support fails. The July KW is headed to $4.73. Condition ratings are a 66% Good to Excellent and export sales are still poor. If the corn isn’t moving up and the outside markets are negative, there is little hope for the wheat.

Soybeans                             Estimated Fund Position
Short Term: Down               Net Long Futures and Options: -9684
Long Term: Down               Change: +2000
Overnight Trade: N -10 1/4
Opening Calls: 7-10 Lower

It has been a rough start to the week in the soybeans. The July contract failed at trend line resistance yesterday and closed at the bottom end of the trading range. There was follow through weakness overnight and a new low for the move. Planting progress is behind normal in some parts of the eastern Corn Belt, but that is not a concern of the market. Traders are more concerned with the weakness in the outside markets and growing new crop supplies. Look for the July beans to move to $9.20 soon.

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

Live cattle futures posted lower closes on Monday, with most contracts finding their lowest closing price for the move. Trade was quiet on Monday, but turned more active overnight, as problems in the European Union continued to surface, adding pressure to equity markets around the world. Live cattle futures fell over 1.50 in overnight trade at one time, with prices rebounding somewhat after 6:00 am. National show lists appear somewhat larger, while our list was down from week ago and year ago levels. Next week’s shortened kill week could offset replacement demand for the holiday weekend. Fundamentals remain supportive, but outside influences may continue to dominate.

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

Feeder cattle futures closed below key support levels on Monday, post triple digit losses in all but the August contract. Overnight activity is sharply lower again, with losses of .80-1.20 in most months. Cash trade has begun to fall more aggressively, with daily cash averages for the weekend dropping near 107.00. Look for weakness to continue as long as equity markets and other commodity markets remain under the influence of the unsettled world economic picture.