Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options: 2000

Long Term: Down Change: Flat

Overnight Trade: N -1 @7:30 AM

The corn market is in consolidation mode, which isn’t the best way to relieve the oversold condition of the market if you are looking for a rally to sell. We needed a little bit better ethanol production and a little bit better export sales to ramp up the bullish enthusiasm. It also doesn’t help that the corn has quit following the crude oil. The markets had been highly correlated, but now the oil is making new highs for the year and the corn is being left behind. Planting delays are the best hope for the bulls right now.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options: -89000

Long Term: Down Change: +2000

Overnight Trade: Chicago: N +1 KC: N +3 @7:30 AM

There were some very good rainfall totals in parts of central Kansas, but the numbers were pretty erratic in the rest of the state. Garden City will be at .01 officially, because the airport got missed, but it looks like the numbers in town were closer to 1 inch. There was a little bit of a bounce overnight, but the July KW has gone 8 days, so far, without taking out the previous day’s high.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: -47000

Long Term: Down Change: Flat

Overnight Trade: N +2 @7:30 AM

Like the corn, the soybeans are also in consolidation mode. Traders are waiting for planting progress figures/ideas to gauge if we will end up with any more soybean acres. The oversold condition of the market has been relieved and there isn’t much incentive to move higher at this point, so watch out for considerable pressure next week.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: 10-30 Higher

Live cattle futures continued their recovery from last Friday's meltdown, with June now trading more than 3.00 above last weeks' closing price. Cash trade for the week remains mostly untested, with asking prices of $165 or better and bids no better than $162 by days' end. This weeks' kill remains more aggressive than a week ago, but Thursday’s total of 102,000 looks less impressive. Open interest continued to rise on the rally, with Thursdays' total up nearly 2,500 contracts.

Feeder Cattle

Trends

Short Term: Down

Long Term: Up

Opening Call: 20-40 Higher

Feeder cattle futures closed moderately higher on Thursday, with May now more than 3.50 higher than last Friday's close. Corn prices continue languish near the bottom end of the recent trading range and cash index levels remain more than 3.00 above the April and nearly 5.50 above the May contract. Rains across grazing areas in the plains should add competition for summer grazing cattle.