Corn Estimated Fund Position

Trends – March Contract

Short Term:Down Net Long Futures and Options: 167000

Long Term: Down Change: -12000

Overnight Trade: H -3 @7:30 AM

The March corn fell below its critical support of $3.76 yesterday and also closed below the 100-day moving average. The next downside target for the March contract is $3.63, which isn’t too far from the overnight low of $3.69 ½. On the bright side, export sales were very good again at 1.07 MMT for the old crop.

Wheat Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: -17000

Long Term: Down Change: -8000

Overnight Trade: Chicago: H -3 KC: H -1 @7:30 AM

There is no love for the wheat market. The March KW made yet another new low for the move overnight. The Dollar is back on the rise and the Paris Milling wheat is under pressure. Export sales were good at 544,400 MT for the old crop. That is the second week in a row of good sales and an indication that the lower prices are attracting demand. There is, however, no sign of a buy signal.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: -12000

Long Term: Down Change: Unch

Overnight Trade: H -1 @7:30 AM

Soybean export sales were better than expected at 888,200 MT. The March beans have found some support at the $9.66 area and we will see if the big sales are enough to allow the support to hold. I suspect that the support will fail eventually and that rallies are still for selling. Eventually the March bean will head to $9.20.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: Mixed

Live cattle futures close sharply higher in the front month on Wednesday, with deferred contracts narrowly mixed. We could see more of the same with this mornings' opening. Friday afternoon's cattle inventory report is due out at 2:00 pm, with expectations for continued tight supplies. This weeks' cash development could start taking shape today, with most business likely to wait until Friday. Cutout values were mixed on Wednesday, with demand looking a little slow. For the week April live cattle have rebounded 2.30.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: Mixed

Feeder cattle futures closed mostly higher on Wednesday, with the expiring January contract pacing the gains. Cash index levels have not fallen off as much as expected earlier in the week, which should give the whole complex a bit of a boost. More support should stem from the corn market breaking support levels on Wednesday's close. Corn is off another 3 cents overnight and appears to have its most downside momentum in some time.