Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: N -2 @7:30 AM

The corn is in consolidation mode as traders wait to see the ethanol production report, the export sales report, and how this week’s rain will affect the planting pace. Technical indicators are oversold and this market is due for a bounce, so traders are just waiting for a bullish excuse to exit shorts or buy. That being said, critical support in the July contract lies at $3.75 and a failure there would suggest a move towards $3.65.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options:

Long Term:Up Change:

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

The July KW made a new low for the move overnight and then posted a small bounce. The gains were insignificant in relation to the recent losses, but so far the market is holding at the March low. We may have seen enough pressure until rain actually hits the ground and crop condition ratings stabilize. Like the corn, this market is due for a bounce.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: N +2 @7:30 AM

Soybean futures are recovering from their oversold condition and the July contract may very well be headed back to the 40 and 50-day moving average resistance. Rallies still look like selling opportunities because nothing has happened to suggest we won’t see an increase in acreage and old crop supplies are still plentiful. Buying interest will likely dry up as the July contract approaches $9.85.

Live Cattle

Trend

Short Term: Down

Long Term: Up

Opening Calls: 30-50 Higher

Live cattle futures continued to bounce back from last weeks' selloff, posting strong gains to close back above the 100 day moving average. Cutout values continue to work higher and slaughter levels are 14,000 above week ago levels. The improved board position should have feedlot asking prices firmly above last weeks' cash trade, with most southern yards now in the $165-$166 area with their showlists. Open interest was on the rise on Tuesday.

Feeder Cattle

Trends

Short Term: Down

Long Term: Up

Opening Call: 30-50 Higher

Feeder cattle futures had a bounce back day on Tuesday, with moderate to strong gains across the board. Corn values continue to struggle, which along with the huge discount to the cash index, should give the board a lift from current levels. Corn is off another 2 cents overnight. Equities and the Dollar stronger, providing mixed signals from the outside.