Corn Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: -104000

Long Term: Down Change: +9000

Overnight Trade: N +1 @7:30 AM

The corn was active overnight with the July contract reaching the highest level since April 24th at one point. The bulk of the gains had been given up by the end of the overnight session, but the charts suggest there is still a reasonable shot that short covering can carry the July contract up to the $3.75 - $3.80 area sometime in the next two sessions. Fresh news is rather sparse, but the chart outlook is definitely improving.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: -85000

Long Term:Up Change: +18000

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

The wheat market posted huge gains yesterday, which basically came out of nowhere. There isn’t too much fresh fundamental news, but yesterday’s new lows in the Dollar are helpful and it seems apparent that the trading funds were much too short. The most important fundamental out there is the improving basis levels, which indicates demand from somewhere. The HRW crop will be poor again, but that won’t matter much unless we see better exports, so hopefully the weaker Dollar will help with that.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options: -45000

Long Term: Down Change: Flat

Overnight Trade: N +2 @7:30 AM

The soybeans are still struggling. The NOPA crush figures should show excellent demand, but not enough to draw down stocks to uncomfortable levels. The July beans haven’t taken out the April low, so we are finding support, but it won’t last long if there isn’t a weather scare. Any rally is a selling opportunity until something turns nasty with the weather.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: 40-80 Higher

Live cattle futures closed sharply higher on Thursday, setting up a potentially strong cash trade on Friday. Asking prices have move to $164 in the south, with $262+ being sought in Nebraska's beef trade. Cutouts set all-time highs in the choice cuts on Thursday and are up more than 7.00 for the week. Open interest climbed more than 6,000 contracts on the day, as new buyers pore into this market. Early calls look very strong to close out the week’s trade.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: 30-50 Higher

Feeder cattle futures posted triple digit gains in all but the spot month on Thursday, in spite of sharply higher grain prices. The cash index jumped .51 for the day and is at its highest level in a month. Corn is modestly higher overnight but we expect deferred feeders to open with good strength. Some profit taking could be seen today, after solid gains by the bulls.