Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: N +3 @7:30 AM

The corn may finally be trying to bottom out. Technical indicators are oversold and this market is due for a correction. The weakness in the Dollar may offset the ideas that acreage may grow, at least for a day or two. The big test on the chart will be at Monday’s high in the July contract of $3.69 ¾. A close above that level would cause the bears to have some doubts and result in some short covering.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: Chicago: N +3 KC: N +2 @7:30 AM

The wheat made a strong recovery yesterday and the continued weakness in the Dollar should encourage some short covering by the trading funds. Much of the HRW Belt will be dry for another week at least, so there won’t be any improvement in the crop condition ratings. On the chart the big technical hurdle for the July KW will be the 9-day moving average at $5.11. If the market doesn’t clear that level this week, plan on further losses.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: N -1 @7:30 AM

The July soybeans tested, and failed, at the 50-day moving average. Short covering and spread trade can only support the market for so long. Yesterday’s high will be critical resistance for this market and it will probably take more good demand news and open corn planting weather to get the market to move through there. Look for consolidation trade today.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: 30-60 Higher

Live cattle futures closed moderately higher on Tuesday and look poised to extend those gains on today's open. Cutouts were higher on Tuesday and asking prices have firmed to $161-$162 in the south and $260+ up north. The market appears to have digested the higher than expected placement numbers and returned into a positive mode, with cash expectations on the rise. Another dollar higher in the June would confirm near term bottom in the chart picture.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: 30-60 Higher

Feeder cattle futures bounced back on Tuesday, inspired by the strength in the fats, a higher cash index and new lows in the corn futures. Thursday is last trading day in the April contract, with May trading 3.62 discount to April. Corn is firmer in overnight trade, with weakness in the Dollar supporting. Choppy trade in the feeders will continue but the bias appears to be strengthening.