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

This is report day and the corn market is testing last week’s lows. Expectations are for a slight increase in old crop ending stocks and for new crop ending stocks to be lower than the old crop. The keys to the report will be the new crop acreage and yield estimates. Major deviations from expectations in those numbers will move 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 -1 KC: N -1 @7:30 AM

Winter wheat condition ratings were slightly better with the nation as a whole coming in at 44% Good to Excellent, up 1 point and Kansas unchanged at 27% Good to Excellent. US condition ratings are equal to the 5 year average, but the average is pretty terrible since we have had so many weather problems in the past five years. The July KW had a solid close yesterday, but no follow though overnight. Traders are waiting for the report numbers.

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 soybean market has been sideways since mid-April. Perhaps traders are waiting for this report to get out of the way before making their next move. If the report comes out as expected with higher acreage and higher new crop ending stocks then the market should maintain a weaker bias until we get some kind of a weather scare. It will take some kind of a surprise with the acreage figure to give the bulls much of a chance.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: 20-40 Higher

Live cattle futures closed sharply lower on Monday in spite of early strength and their sharp discount to the current cash market. We found no follow through buying on Monday, after taking out the last months' worth of highs in early morning activity. The market does maintain an upward bias but the inability to get pass key resistance levels has some of the bulls on edge. Open interest rose 2,432 contracts on the decline, suggesting new hedgers entering the fray. Showlists were much larger in Kansas, with our list still reporting no carryover.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: 20-40 Higher

Feeder cattle futures settle mixed on Monday, with May strong due to the 4.45 jump in the cash index and deferred contract modestly lower. Corn was weaker on Monday and is soft in overnight trade. This mornings' 11 am grain report could cause some volatility in todays' trade. The new index is 219.26 and 2.50 premium to the spot futures. Trends remain higher, in spite of Monday’s rally failure.