Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options: -36000

Long Term: Down Change: +6000

Overnight Trade: N -4 @7:30 AM

Corn planting was lower than expectations at 9% complete, but that didn’t provide much support to the market because traders seem to be more concerned about a reduction in feed demand caused by bird flu here in the United States. $3.77 ½ will be a critical support level to watch today in the July corn. The bulls really need that level to hold.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options: -87000

Long Term: Down Change: -3000

Overnight Trade: Chicago: N -3 KC: N -2 @7:30 AM

Wheat condition ratings were worse than expected with US wheat staying steady at 42% Good to Excellent and Kansas dropping 2 points to 26% Good to Excellent. There is a good chance that conditions are steady to lower again next week. We have a little rain and cool temperatures in the forecast, but those areas that missed out last week are rapidly getting worse.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: -73000

Long Term: Down Change: Flat

Overnight Trade: N -3 @7:30 AM

The July soybeans are trying to climb above trend line resistance. The beans hung on fairly well considering the bird flu talk and the overnight weakness in the soybean meal. A close above the trend line today would open the door to a test of the $10.00 level. Indicators are turning up, but one should be careful chasing rallies in the beans with the threat of expanded acreage hanging over the market.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: Mixed

Live cattle futures started the week much like they finished last week, with sharply lower closes across the board. Cutouts were higher on fairly good demand and drop values were steady. Technical indicators have turned lower and even become oversold in just two days. Show lists appear to be larger in most regions, with offerings significantly higher in Nebraska. Open interest dropped 4,600 contracts on Monday's selloff.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: Mixed

Feeder cattle futures gapped below the 50 day moving average in the May contract on Monday, making it very important to close that gap by weeks' end. The cash index fell 180 points on the day but remains nearly 6.00 premium to the spot futures contract. Overnight corn prices are off another 4 cents, providing some much needed support for the feeders. Open interest dropped 864 contracts on the days' selloff.