Corn Estimated Fund Position

Trends – December Contract

Short Term: Up Net Long Futures and Options: 185000

Long Term: Down Change: -17000

Overnight Trade: Z +2 @7:30 AM

Today is report day. The corn traded both sides of unchanged overnight and finished the session at the upper end of the range. The corn has gotten stronger as the Dollar has gotten weaker through the night. Today’s close will, of course, be determined by the reaction to today’s numbers, but it seems that if it were not report day this would be a good day for commodities in general.

Wheat Estimated Fund Position

Trends – December Contract

Short Term: Up Net Long Futures and Options: -8000

Long Term: Down Change: -8000

Overnight Trade: Chicago: Z +5 KC: Z +4 @7:30 AM

Yesterday the wheat managed to give up all of Monday’s gains and then some, which shows just how confident traders are in the export sales pace continuing. The sharp break in the US Dollar should be helpful to the wheat, but we will have to get the report numbers out of the way first. Critical support for the December KW lies at $5.01 ½.

Soybeans Estimated Fund Position

Trends – December Contract

Short Term: Up Net Long Futures and Options: 64000

Long Term:Up Change: -8000

Overnight Trade: X -1 @7:30 AM

The November beans traded back below the 50-day moving average overnight, but climbed back before the end of the session. We have a mixture of fears about slow Chinese imports and their changes in currency valuation as well as fears about acreage and yield here in the US. The soybeans will end up being quite volatile today so be prepared for big swings.

Live Cattle

Trend

Short Term: Up

Long Term: Down

Opening Calls: 20-50 Higher

Live cattle futures rejected some early weakness to close narrowly mixed on Tuesday and appears set for a stronger open on Wednesday. Cutout values posted strong gains for a second day in a row, with demand once again fairly good. In spite of rhetoric about the Chinese currency devaluation the US Dollar is sharply lower today, which should support commodity prices in general. Cash remains nonexistent, with no bids offered and asking prices at least $2.00 above last weeks' trade.

Feeder Cattle

Trends

Short Term: Up

Long Term: Down

Opening Call: 50-75 Higher

Feeder cattle futures closed modestly higher on Tuesday, with weakness in the grain markets offsetting negative overall commodity trade. Cash index levels remain more than 2.50 premium to the spot futures price, which is looking like it wants to close that gap in the early bid/offer stage. Corn is up a couple cents ahead of this morning’s supply/demand report. A breakout to the upside in this market is needed, as the chart patterns are looking a little tired.