Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: N -4 @7:30 AM

The corn made another new low for the move overnight and the July contract is headed to the $3.50 area. The corn planting progress figure came in at 55% complete compared with 38% on average. The only problem with the strong planting pace is that it means the conditions are dry. We are now a couple of weeks away from the dry weather making the shift from being helpful to harmful.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: Chicago: N -4 KC: N -3 @7:30 AM

Wheat crop conditions were slightly higher in the US as a whole at 43% Good to Excellent. Kansas was split with both the Good to Excellent and Poor to Very Poor picking up a point at 27% and 32% respectively. Spring wheat planting is progressing rapidly with 75% of the crop planted, which is once again due to dry weather. The July KW is still holding above last week’s low, but confidence in that lasting is low.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: N +2 @7:30 AM

The July soybeans posted a strong close yesterday and were firm again overnight. The market will need to see a close at $9.79 or better today to keep the upward momentum going. After that, the next upside objective would be the $9.95 area. Soybean planting is ahead of average with 13% completed compared with 9% on average. It is still difficult to make a bullish case for the beans unless we ended up with a lower acreage estimate.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: 30-50 Higher

Live cattle futures gapped higher on Monday and didn't look back, scoring triple digit gains out through the end of the year. New buying looks to be showing up, with open interest up 1,853 contracts for the day. Cutouts were stronger for the day, with choice leading the way higher. Showlists are smaller in most areas and asking prices started surfacing $2-$3 higher than last Friday's trade. The Dollar and equities are little changed as we write.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: 10-30 Higher

Feeder cattle futures should start the day higher, with higher fats and lower corn overshadowing the big drop in Monday's cash index. Corn is making new lows this morning and rains over most of the grazing country should provide a lift at the auction barns. August closed a month old chart gap and should be targeting somewhere near the 220.00 level.