Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options: -90000

Long Term: Down Change: +4000

Overnight Trade: N +1 @7:30 AM

The July corn is trying to climb back into the old trading channel. The market certainly doesn’t seem to be in a hurry to relieve the oversold condition and traders are still worried about a huge planting number next Monday and eventually seeing higher acreage than what we saw in the Prospective Plantings report. Corn export sales were solid with the old crop at 832,500 MT and the new crop at 113,300 MT.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options: -102000

Long Term: Down Change: +5000

Overnight Trade: Chicago: N +4 KC: N +4 @7:30 AM

The wheat posted a strong close yesterday and further gains overnight. The July KW is trading above the critical resistance at the 9-day moving average. If the market manages to close above that level today, the next upside target will be the $5.28 area. Net export sales weren’t bad at 403,700 MT, but there was lots of switching from old crop to new crop, but at this point in the year it probably won’t matter to the May contract. The fact that the Dollar is still falling and we are seeing decent sales is supportive to the market.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: -39000

Long Term:Up Change: +7000

Overnight Trade: N +3 @7:30 AM

July soybeans closed above the 50-day moving average yesterday and made a new high for the move overnight. The next objective for the market is the April high of $9.97 ½. Export sales were good with 433,400 MT of old crop sales. It is going to be hard to overcome the adequate supplies and threat of higher acreage, but old crop stocks are still shrinking and the charts are starting to look bullish.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: 10-30 Higher

Live cattle futures closed mixed on Wednesday, with the front two months modestly lower and deferred contracts modestly higher. We are waiting for this weeks' cash development, with bids and asking prices a good

$4.00 apart. Cutouts were mixed, with good gains in the choice and triple digit losses in the select. We view the widening spread as healthy for the market. Today is last trading day for the April live contract.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: 20-40 Higher

Feeder cattle futures posted moderate to strong gains on Wednesday, with more gains in the cash index and a lack of much fervor in the corn futures seen as support. Corn is modestly higher overnight but once again isn't showing a significant recovery effort. Cash index levels should continue to climb into weeks end. Chart patterns are higher on short term and intermediate charts.