Corn Estimated Fund Position

Trends – July Contract

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

Long Term: Down Change: Flat

Overnight Trade: N -1 @7:30 AM

The corn market is drifting sideways. Yesterday’s effort to recover Monday’s losses failed and so far today there doesn’t appear to be anything to give the market direction. Expectations are still for a big planting number on Monday and it now seems that anything below 50% will be a bit disappointing. Technical indicators are still oversold, but they can stay that way for a long time. It is going to take a close above $3.70 in the July contract to get traders excited about covering shorts.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options: -107000

Long Term: Down Change: -5000

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

After a promising start the wheat reversed lower yesterday. There was a little bit of strength overnight, but basically the market is quiet. Next week will be the Wheat Quality Council’s tour, which will be interesting as usual. If the crop condition ratings are correct, they are going to find a lot of “fair” wheat. I expect to see condition ratings decline Monday, but my thinking is a bit clouded by the fact that I visited Johnson and Syracuse yesterday.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: -47000

Long Term: Down Change: -8000

Overnight Trade: N -2 @7:30 AM

Like the other markets, the soybeans had a poor finish to the day. There is only so much that the spread trade with corn and some fresh demand can do for the market. The market doesn’t have to fall apart today, but the July contract is sitting at critical support and another sharply lower close today will have the charts looking pretty negative. The bulls need more buying from the Chinese, more strikes in S. America, and fewer acres here.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: Mixed

Live cattle futures settled with triple digit losses on Thursday, giving up early strength in the market fairly easy. To be fare, June did close 1.50 off of session lows but remained 1.20 lower for the session. Cash trade remains mostly untested in Kansas, with Texas and Nebraska seeing some light testing on Thursday. Lower cutout values erased gains from early in the week, but packers went home willing to buy southern cattle at last weeks' price. Asking prices in the south remain near the $161 level.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: 20-40 Higher

Feeder cattle futures were narrowly mixed on Thursday, with May off .07 and August unchanged. Afternoon trade improved on the feeders, with ideas that cash remains supportive and corn is still non-threatening. Overnight corn values are off a penny and the cash index is now premium by 4.40 to the spot May contract.