Schwieterman: Corn prices flat, feeder futures higher

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Corn                                     Estimated Fund Position
Trends – July Contract
Short Term: Up                    Net Long Futures and Options: -18777
Long Term: Up                     Change: -2000
Overnight Trade: N Unch @7:30 AM


The corn was unable to close positive yesterday, but it did close near the session highs. The market was flat overnight and appears to be set for some consolidation trade as we wait for fresh news. Tomorrow’s ethanol production figure and the export sales figure Thursday will be key market drivers. For today, plan on directionless trade.

Wheat                                  Estimated Fund Position
Trends – July Contract
Short Term: Up                    Net Long Futures and Options: -58623
Long Term:Up                      Change: +4000
Overnight Trade: Chicago: N Unch KC: N +1 @7:30 AM


The July KW made a new high for the move overnight. Traders are concerned about the dry forecast for parts of the HRW Belt. The one and a half day correction we saw wasn’t enough to relieve the overbought condition of the market so there is still potential for weakness in the short run. Trend indicators are still pointing up, but the market does appear to be running out of momentum.

Soybeans                             Estimated Fund Position
Trends – July Contract
Short Term: Up                    Net Long Futures and Options: 182443
Long Term:Up                      Change: +7000
Overnight Trade: N -1 @7:30 AM


The soybeans are taking a break overnight after making new multi-year highs yesterday. In the daily sales announcements, USDA list China as a buyer of 568,000 tons. Traders have been looking for cancellations of this size, not fresh purchases, so the market could be explosive today. The March contract is still on track to reach $14.00 at some point soon.

Live Cattle
Trend
Short Term: Up
Long Term: Up
Opening Calls: 20-40 Higher


Live cattle futures closed lower in all but the February contract on Monday. The April contract failed to hold gains above the 142.00 level once again, with settlement more than 1.00 off of session highs. Cutout values were sharply higher on Monday, with movement improved over week ago levels. Tight supplies and the grilling season right around the corner, have packers scrambling for slaughter cows and any other potential hamburger production. Open interest was up 1,934 on the day.

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


Feeder cattle futures closed higher in all but the lead March contract on Monday. March came under pressure from the recent drop in the cash index, which fell for the 5th consecutive day on Monday. Corn prices are basically flat for the week, after trying to sell off in the first half of trade on Monday. Overnight trade is trending higher in the feeders, with March leading the recovery effort.



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