Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: N +3 @7:30 AM

The July corn cleared five sessions worth of highs overnight, but there is still heavy overhead resistance at the $3.70 area. Export sales were poor at 370,000 MT for the old crop, but perhaps that will be offset by the new low for the move in the US Dollar Index. At some point the weaker Dollar should help demand. For now we should look for a test of the $3.70 level and then we will see if we get enough short covering to push through the resistance.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: Chicago: N +8 KC: N +9 @7:30 AM

Wheat sales were also poor with 115,400 MT of old crop sales and 142,000 MT of new crop sales. The good news is that the combination of the weaker Dollar, dryness in Russia, and stronger basis levels encouraged some short covering early this morning. If the gains hold through the day the charts will begin to look bullish. The $5.28 - $5.33 area is the next upside objective for the July KW.

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

Soybean sales are at 1.820 billion vs. expectations of 1.800 billion, so any positive sales number is just great. This week’s number was 136,600 MT. The problem with the market is not demand it is supply and demand will never be able to keep pace with production if we have more acres and a decent yield. The best hope for the bulls is a weather problem this summer.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: 30-50 Higher

Live cattle futures reversed early weakness to close sharply higher on the Wednesday, with June posting the highest close since April 3rd. The ability of this market to erase Mondays' negative action looks impressive. Weakness in the US Dollar should help export sales as well. Junes' next objective should be near 153.50. Cash asking prices may firm even more based off of the strong futures activity.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: 20-40 Higher

Feeder cattle futures took their lead from the fats on Wednesday, posting triple digit gains in spite of minor corn strength and just steady cash index numbers. Corn is nearly a nickel higher this morning, which could limit feeders upside. Cash trade will be very important into weeks' end. The target for August feeders remains near the 220.00 level. Cash index levels look to be steady to firmer into Friday.