Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options: 2000

Long Term: Down Change: +5000

Overnight Trade: N +1 @7:30 AM

The corn showed some signs of life at times yesterday and posted decent gains. There wasn’t much action overnight and the old crop export sales figure of 588,000 MT won’t encourage much buying. The best hope for the bulls at the moment is some cool, wet weather in the Corn Belt that keeps the planting pace slow. Crude oil made a new multi-month higher, which could cause some traders to question their short positions, but acreage shifts are a much more likely catalyst for a rally.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options: -93000

Long Term: Down Change: -5000

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

Wheat export sales were horrible at 47,900 MT. Crop conditions are just about irrelevant when we can’t sell anything on the world market. The Dollar is down today, so perhaps that will help and it looks like our rain chances are diminishing pretty rapidly, which gives the wheat a little bit of a chance for a rally today. Yesterday’s new contract low is very bothersome and it will have traders thinking about a move to $5.00 in the July KW.

Soybeans Estimated Fund Position

Trends – July Contract

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

Long Term: Down Change: +7000

Overnight Trade: N -2 @7:30 AM

Soybean export sales were better at 312,600 MT for the old crop. Old crop bean sales have nearly reached the estimate for the year, so there is potential for a higher export estimate at some point in the crop year. However, the bigger issue is still the new crop acreage and unless we have a major change from the current expectations, rallies are for selling.

Live Cattle

Trend

Short Term: Down

Long Term: Up

Opening Calls: 10-30 Higher

Live cattle futures closed with triple digit gains in the front three months on Wednesday, powered by higher cutouts and rising open interest. April is now back above the 160.00 level and June is trading above last Thursday's closing price. The recovery since Friday's washout has been impressive, with many of those who looked for the demise of this market starting to doubt. Outside markets are mixed, with the Dollar and equities lower overnight.

Feeder Cattle

Trends

Short Term: Down

Long Term: Up

Opening Call: 20-40 Higher

Feeder cattle futures rebounded as much as 2.02 on Wednesday's close, with signs of stronger cash in some areas providing a boost. Corn futures are of modestly overnight, giving feeders additional reason for recovery. We continue to see this as very choppy market into this months cattle on feed report. Open interest was modestly higher on the rally effort.