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 made another new low for the move overnight. Traders are expecting to see a planting progress figure somewhere over 50%, which would be a huge jump for the week. There isn’t much for the bulls to talk about at this point. Planting is going well and the charts look bad. Right now a move to $3.50 in the July contract is looking likely.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: Chicago: N -5 KC: N -5 @7:30 AM

The July KW is still above last week’s low, but we have to plan on a test of that low today. The Wheat Quality Council tour will take place this week and they we have to contend with rain/mud in some areas, so it will be interesting to see how that plays out in the news. There is a good chance that Kansas wheat crop conditions decline in this afternoon’s report and it is hard to imagine the tour coming up with any huge production numbers with the Kansas crop at only 26% Good to Excellent.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: N +4 @7:30 AM

The soybeans made a small bounce overnight, but it didn’t come close to making up for the terrible finish to last week. Spread trade was probably the biggest supporter overnight and the hopes of seeing more good demand numbers are supportive as well, but the pressure in the wheat and corn will likely weigh on the beans eventually and the charts suggest we will see further selling pressure. Look for a move back to the April low.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: 20-40 Higher

Live cattle futures closed moderately lower in the front months on Friday, with winter months trading moderately higher. Cash trade ended up being positive for the week, with southern trade of $160 and the northern cash as high as $163. The cash trade should be supportive, while dropping cutout and hide values will continue to give bears ammunition. The weekly kill was up 22,000, suggesting that the demand season is upon us.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: 20-40 Higher

Feeder cattle futures settled moderately higher on Friday and off only .30 for the week in the May contract. Corn prices continue to provide support, with new lows for the season in overnight trade. The cash index ballooned to 218.00 on Friday and was up a whopping 5.03 for the week. The spot futures contract remains nearly 4.50 discount to the current index. More choppy trade ahead.