Corn Estimated Fund Position

Trends – March Contract

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

Long Term: Down Change: -6000

Overnight Trade: H -1 @7:30 AM

The corn followed yesterday’s poor close with another new low for the move overnight. The weak stock market and weak crude oil seem to be the biggest market moving factors at the moment. The weaker Dollar and solid demand numbers are being ignored. Today’s supply and demand numbers probably won’t have any market moving information, so the outside markets will probably stay in control.

Wheat Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: -65000

Long Term: Down Change: -6000

Overnight Trade: Chicago: H +1 KC: H -1 @7:30 AM

The only positive thing to say about the wheat right now is that the March KW hasn’t closed below $4.40 yet. Other than that we are, as usual, dealing with poor exports, a decent looking new crop, and weak outside markets. The best hope for the wheat is a short covering bounce, which could happen since we are at the long term chart support. However, a close below $4.40 in the March KW would open us up to a move down to $4.00.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: -46000

Long Term: Down Change: -5000

Overnight Trade: H -1 @7:30 AM

So far, the March beans haven’t taken out yesterday’s low and the March soybean oil is still above the 50-day moving average. That isn’t much for the bulls to pin their hopes on, but at the moment that is better than what is going on in the wheat and corn. With the pressure in the stock market today we will probably end up seeing the support fail unless there is something friendly from USDA, which isn’t likely. Plan on the March beans heading for $8.50 eventually.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: 30-50 Lower

Live cattle futures closed limit lower on Monday, taking its' cue from another round of sharp losses in the equities.

Friday's lower cash trade was a factor in the selloff, with beef prices weaker on choice but slightly higher on select cuts. Open interest was up 1,789 contracts, suggesting new sellers entering the market. Equities are lower in overnight trade, with energies trading mixed. There was some $137 traded late on Friday that we didn't hear about until midday on Monday. There were no deliveries posted against the February contract on Monday.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: 40-70 Lower

Feeder cattle futures also settled limit lower on Monday, with weakness in the live cattle and a struggling chart pattern seen as the culprits. Corn prices should be supportive, with nearly 4 cent losses on Monday and an additional 2 cents lower overnight, ahead of the monthly supply/demand report. The cash index posted solid gains of .55 on Monday, after several consecutive days of decline. Open interest was up 296 contracts on the limit lower trade.