Corn Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: -115000

Long Term: Down Change: -7000

Overnight Trade: N -1 @7:30 AM

The corn market is drifting back towards the recent lows. The crop is off to a good start, but there is a long growing season ahead and the funds are still holding a large short position, so we may not have the ammunition for another leg lower right now. If the forecasts look good after Memorial Day then the sellers will reemerge and the pressure will resume. Until then, look for sideways trade.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: -90000

Long Term:Up Change: -7000

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

The wheat saw heavy selling yesterday and quite a bit of weakness overnight. There isn’t much to talk about besides the stronger Dollar and the recent rains, so the bulls don’t have anything to work with. If we have a poor export sales report tomorrow then there won’t be anything to prevent a drop down to $5.15 in the July KW.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options: -60000

Long Term: Down Change: -6000

Overnight Trade: N -4 @7:30 AM

The soybeans ended up making a new low for the move yesterday and again overnight. The failure to hold gains on Monday ended up being a very bad sign. The news hasn’t really changed much, so that keeps the bears in control. The best hope for the bulls is a weather scare and we aren’t seeing one of those at this time. A “normal” growing season will be bearish.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: 10-20 Higher

Live cattle futures closed stronger on Tuesday' supported by new all time highs in the choice beef and growing talk of short bought packers. With a majority of the May contracts used up, packer buyers could be getting closer to the knife than in recent weeks. Smaller showlists and larger kill rates are adding to the tightening situation. Open interest was up 2,854 on Tuesday's rally.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: 10-30 Lower

Feeder cattle futures closed positive on Tuesday, with support from lower corn and a rising cash index. Early bids and asking prices suggest a slightly lower open in the feeders, with the possible exception in the spot May contract. Overnight corn prices are another penny lower and are struggling to follow through on last week’s stronger trade. Wet feedlots in a lot of the region could keep buyers away from the sales for another week or so.