Corn Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: 97000

Long Term: Up Change: +11000

Overnight Trade: Z +2 @7:30 AM

Yesterday the December corn traded through the $4.40 resistance before finishing the day with a mid-range close. The market was firm overnight, but hasn’t taken out yesterday’s high. We have the supply and demand report out at 11:00 and the hopes of the bulls will be tied to seeing a cut in the yield estimate. There will be a great deal of disappointment if the yield is left unchanged.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options: -1000

Long Term: Up Change: Flat

Overnight Trade: Chicago: Z +5 KC: Z +5 @7:30 AM

The wheat closed at the bottom end of the range yesterday, but found support overnight and we have seen a good bounce back. The wheat is still stuck in the same pennant formation that it has been working on all week and the trading ranges keep getting narrower. The December KW has very good support at the $5.94 area and the resistance today is at the $6.06 area. Go with a breakout.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: 62000

Long Term:Up Change: +15000

Overnight Trade: X +7 @7:30 AM

The soybeans posted big gains yesterday and saw follow through buying overnight. The recovery in the Chinese stocks market and hopes of a lower yield estimate today and lower crop condition ratings Monday are fueling the buying. A lower yield today and the potential for lower acreage down the road is certainly supportive, but watch for disappointment if we don’t get the yield cut today.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: 20-40 Higher

Live cattle futures settle moderately lower on Thursday, with recent lows continuing to hold support in spite of another day of big losses in the beef market. The fact that packers are all willing buyers at last week’s prices and have been since midweek, has feedlot managers holding for better prices. Exports for last week were 70% above the four week average. Overnight Dollar weakness of more than 100 points should provide commodity support.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: 30-50 Higher

Feeder cattle futures closed down another 1.60 or so in the active late summer and fall contracts, with firm corn prices and weaker live cattle futures providing weakness. This morning's supply/demand report for the grains is expected to watched very closely by cattle feeders, with corn at its highest level since this time a year ago. The cash index has been holding firm the past two days and stands more than 9.00 above the lead August futures contract.