Corn Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options:

Long Term: Up Change:

Overnight Trade: Z -3 @7:30 AM

The corn market reversed lower yesterday and saw follow through selling overnight. The steady crop condition ratings and the mostly favorable forecasts weighed on the market as well. We typically, but not always, see follow through selling after reversals, so for the time being we should look for the December contract to work back to the $4.25 area.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options:

Long Term: Up Change:

Overnight Trade: Chicago: Z +1 KC: Z -2 @7:30 AM

The December KW made yet another new low for the move overnight and the market is approaching the support at the 40 and 50-day moving averages, which lie at the $5.65 areas today. The Paris wheat is lower and bullish news is sparse right now, so we should expect more pressure. By the time the market reaches the 40 and 50-day moving average support the technical indicators will be oversold and the market will be due for a bounce.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options:

Long Term:Up Change:

Overnight Trade: X +7 @7:30 AM

The failure to hold gains yesterday, followed by more selling overnight, looks a bit ominous on the charts. This market may have run out of buying interest for the time being and we may be looking at a setback. The complexion of the market has certainly changed a lot in the past 36 hours and we need to be aware of the potential for greater losses. Trend line support in the November contract will come in at the $10.06 area today.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: Mixed

Live cattle futures closed moderately higher on Tuesday, with cutouts climbing for the first time in more than two weeks. The bounce was small, but this market needs to start somewhere. Cash trade remains untested, with bids and asking prices a good $5.00 apart. Outside market influences look fairly quiet heading into Wednesday's trade.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: 20-40 Higher

Feeder cattle futures had a big day up on Tuesday, with the spot August contract leading the way, gaining 3.55 for the day. Weaker corn values to begin the week, along with continued strength in the cash market are providing all the incentive this market needs to make a significant recovery. Corn is off another 3 cents overnight and cash index levels remain 10.00 above the futures.