Corn Estimated Fund Position

Trends – March Contract

Short Term:Down Net Long Futures and Options: 197000

Long Term: Down Change: -7000

Overnight Trade: H +1 @7:30 AM

The corn traded both sides of unchanged overnight, but got a shot in the arm after the export sales report came out. Sales were huge at 2.19 MMT for the old crop. The biggest buyer for the second week in a row was “unknown destinations.” Sorghum sales were big again at 307,700 MT with China being the largest buyer. Demand seems to be great despite the strong Dollar and perhaps there is still a chance for the March contract to get back to $4.00.

Wheat Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: -1000

Long Term: Down Change: -500

Overnight Trade: Chicago: H -6 KC: H -3 @7:30 AM

Wheat export sales improved to 458,400 MT. The bulls need to see something better than this, but at least it was an improvement. The March KW made another new low for the move overnight, which looks very poor on the charts. Perhaps this sales report is enough to stabilize the market, but there is definitely no sign of an end to the bear market.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: 1000

Long Term: Down Change: -3000

Overnight Trade: H Unch @7:30 AM

Soybean sales were poor at 14,100 MT due to the recent cancellations. The March beans made a new low for the move overnight and one can’t expect much of a bounce with the continued threat of more cancellations. The trading funds aren’t net short yet, so there is still lots of selling that they can do. Sell rallies.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: 20-40 Lower

Live cattle futures reversed early strength to close narrowly mixed on Thursday. Southern cash trade saw some moderate action at $160, with many producers holding out for better money. The monthly cattle on feed report will be released this afternoon, with on feed expected up 1.4%, placements down 4.3% and marketings off 4.2% on average. The Dollar continues to climb at a dramatic clip following the news that Europe will be printing money at 60 billion a month clip for the next 18 months.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: Steady – 100 Lower

Feeder cattle futures closed higher on Thursday, but well off of their highs for the day. Weaker corn values are providing support, along with the continued steep discount to cash index levels. Overnight corn values are off another 1-2 cents and Thursday's cash index was down to 220.23, but remains more than 4.00 premium to the January and about 14.00 premium to the March futures. We expect the spreads between spot Jan and the deferred to narrow over the next week.