Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: N -1 @7:30 AM

The corn market was very quiet overnight and the market is still consolidating just below the 40 and 50-day moving averages. It could be a while until we see any fresh market moving information. Thursday’s supply and demand report probably won’t be too exciting, but perhaps Monday’s planting progress figures will get traders excited.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options:

Long Term:Up Change:

Overnight Trade: Chicago: N -4 KC: N -5 @7:30 AM

It is still early in the week, but so far traders aren’t too impressed with the declining crop condition ratings or the dry forecast for the HRW Belt. Kansas wheat took the biggest hit falling 6 points to 33% Good to Excellent. The wheat is still rated higher than last year, but we have to expect more declines next week. Trend line support is still well below the market near $5.60 in the July KW.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: N -3 @7:30 AM

The July soybeans have failed to push above the 40 and 50-day moving averages and the market took out yesterday’s low overnight. If there isn’t something supportive in either the export sales report or the supply and demand report, the July beans will probably be back at $9.60 very soon. What upward momentum there was has been lost and is now turning down.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: Mixed

Live cattle futures reversed early strength to close moderately to sharply lower on Monday, in spite of cutout strength and last week’s gains in the cash market. April is now as much as 6.50 discount to northern cash from last week and 4.50 below southern trade. Long liquidation appeared to be a key factor, with open interest falling more than 3,000 contracts on the day. A sharply higher US Dollar overnight could limit any rebound effort in the fats.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: Mixed

Feeder cattle followed the fats lower on Monday in spite of a significant jump in the cash index and a struggling corn market. The moderate losses in the April contract leaves a 3.40 gap between the spot month and the cash index. Overnight corn prices are modestly lower, with Dollar strength a key factor. It appears to us that the late selloff on Monday was overdone and would expect some early rebound effort in this market.