Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options: 177000

Long Term: Up Change: -17000

Overnight Trade: Z Flat @7:30 AM

Yesterday the December corn gapped lower and fell below the 38% retracement of the last move up. Crop condition ratings were unchanged at 69% Good to Excellent, which is below last year, but is getting farther above average every week. The combination of poor chart action and solid crop conditions make the $3.97 level the next downside target. This is where the 62% retracement and the 40 and 50-day moving averages converge.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options: 19000

Long Term: Down Change: -4000

Overnight Trade: Chicago: Z -2 KC: Z +2 @7:30 AM

The wheat is oversold, and that is just about the only positive thing I can come up with. The Paris wheat is down again and the Dollar is consolidating near the recent highs. There is trend line support below the market at the $5.34 area in the December KW contract and that is looking like a viable downside target. Be careful trying to pick a bottom, but that might be a good spot to exit shorts and hope for a correction to sell.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options: 74000

Long Term:Up Change: Flat

Overnight Trade: X +4 @7:30 AM

The soybeans ended up closing in the top part of yesterday’s trading range then saw some buying overnight. Crop condition ratings were unchanged at 62% Good to Excellent, which doesn’t give much for either the bulls or bears to work with. In the long run the bigger issue is still the acreage and what level that will end up being. So far the November contract is holding at the 38% retracement and a positive close would look good on the charts.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: Mixed

Live cattle futures closed narrowly mixed on Monday and appear set for a mixed open to Tuesday's trade.

Cutout values were higher for the day, and exports lined up more than 3 weeks out rose significantly last week. Lower prices finally appear to be attracting new business. The Dollar is weaker this morning and equities are near unchanged.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: Mixed

Feeder cattle futures found support from sharply lower corn values on Monday, with the whole complex seeing moderate to strong gains. Chart patterns are looking more supportive in the feeders. Mondays' cash index average imploded, dropping 4.17 from Friday's reading. We could see another drop in today's index, before any firming trend might resume.