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

It was another night of good volume in the corn. The December contract made a new high for the move, making five consecutive higher highs, before settling back to negative territory at the end of the session. Crop condition ratings were a little better than expected with the Good to Excellent steady at 69% and the Poor to Very Poor up 1 point at 9%. The better than expected conditions and the overbought condition of the market may work together today to put pressure on the market. The momentum is still up, but we might be running out of bullish news. The next upside objective remains $4.70 until we see a lower close.

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

Yesterday the December KW climbed back to make a mid-range close, then traded both sides of unchanged overnight. It seemed that most of yesterday’s selling pressure was related to spread trade and if there is no clear direction in the corn today then perhaps the wheat will get a reprieve from the selling today. The Paris wheat is flat, so there is no input from that market and the Dollar is weaker, which is supportive. The $5.60 area is still a viable downside target for the December KW.

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 beans made a new high for the move overnight, but gave up most of the gains by the end of the session. Condition ratings declined one point to 62% Good to Excellent, which will keep the bears nervous. It still appears that we will see a lower acreage estimate at some point in the crop year, and that will be in the back of trader’s minds as well. If this is going to be another leg higher in the beans then we have the potential for a move to $11.00 in the November contract.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: 10-30 Lower

Live cattle futures continued to struggle, with the lead August contract posting nearly 3 month lows. Cutouts were weaker once again and the sharply higher Dollar continues to weigh on export potential. August has reached a 50% retracement of the February lows. If these levels don't hold a 62% retracement is near 144.30. Liquidation appears to be the main culprit, with open interest dropping another 3,612 loads on the day.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: 20-40 Higher

Feeder cattle managed to hold last week’s lows on Monday, in spite of the weakness in the fats, with support coming from another sharp gain in the cash index. The index gained 3.07 and resides 12.40 above the August futures. Corn put in new highs for their current move on Monday but are off 2-3 cents overnight. This market could be setup for a more substantial recovery.