Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: N -1 @7:30 AM

Yesterday the corn responded to a relatively boring supply and demand report by posting an outside day on the chart, but closed just above unchanged. The report didn’t hold any market moving information, so by the end of the day the market didn’t move. Unless the falling Dollar and strength in the outside markets creates some short covering in the corn we may be in for a long stretch of mostly sideways trade. At this point the bulls need a weather scare to put some life in the market.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: Chicago: N -3 KC: N -3 @7:30 AM

The wheat market showed some solid gains ahead of yesterday’s report numbers, but couldn’t hold onto them going into the close. The weak Dollar will probably be the biggest supporting factor for the wheat today since we don’t have much fresh news available. On the negative side is the potential for steady to higher crop condition ratings on Monday could weigh on the market. Disease pressure could potentially hold the condition ratings back, but the adequate moisture and cool temperatures are generally good for the wheat.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: N +1 @7:30 AM

The soybeans took the biggest hit yesterday thanks to the 500 million bushel new crop ending stocks estimate. That is just too many soybeans to have on hand at the end of the year. USDA may be underestimating demand and summer weather will determine the yield, but at the moment it is hard to find a reason to be bullish.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: 10-30 Lower

Live cattle futures bounced back from Monday’s selloff to close moderately to sharply higher on Tuesday. June led the recovery effort, with gains of 1.22 at the close. Choice cuts posted another day of strong gains, with select backing off modestly. Cash trade appears to be a day or two away, with asking prices of $163-$164 in the south and $260+ in the northern beef trade. Early bids from the packer remain non-existent.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: 20-40 Lower

Feeder cattle futures closed mostly lower on Tuesday, with the spot May contract posting the only gains. The cash index remained unchanged on Tuesday at 219.26 and is still more than 1.50 premium to the spot May contract. Weakness in the deferred over the past couple of days is somewhat worrisome. August broke out of recent upward channel on Tuesday and needs to work higher soon to keep recent longs aboard.