Corn Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options:

Long Term: Up Change:

Overnight Trade: N Unch @7:30 AM

The corn is still consolidating just above the 40 and 50-day moving averages waiting for tomorrow’s Quarterly Stocks and Prospective Plantings reports. News is pretty limited other than the anticipation of the reports. The Dollar is stronger and the crude oil is weaker, which won’t help, but probably won’t matter much today either.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options:

Long Term:Up Change:

Overnight Trade: Chicago: N +3 KC: N +5 @7:30 AM

Wheat was firm overnight, perhaps in anticipation of poorer crop condition ratings this afternoon. The forecasts for western Kansas have some moisture at the end of the week, but totals look low and the temperatures look pretty high at times, so the crop won’t be improving this week either. There probably won’t be much exciting news for the wheat in tomorrow’s report so it will be the weather and the direction of the corn and beans that have the most influence this week.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options:

Long Term: Down Change:

Overnight Trade: N Unch @7:30 AM

The soybeans are consolidating ahead of the reports, but if there isn’t something bullish tomorrow, the beans are going to struggle as we move through the spring. It will be difficult to ever come up with enough demand to compensate for higher acreage, so if the trade guesses are right and we end up with 2 million more acres, we have to plan on lower soybean prices.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: 10-30 Higher

Live cattle futures closed higher across the board on Friday, with anticipated higher cash trade coming to fruition. Southern trade at $165 and southern beef trade as high as $163 should be enough to support futures early in the week. Cutout values were able to keep up with the higher cash trade, leaving margins similar to the week before. Outside markets look mixed, with the Dollar and equities higher. Hog and feed numbers could support deferred live cattle.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: Mixed

Feeder cattle futures closed sharply higher on Friday, with most months posting 2.00 gains or better. For the week April feeders gained 2.75 in spite of 7 cent gains in the corn market. Overnight corn prices are near unchanged. Feeder futures are premium to the current cash index, which could limit strength on Monday's open. The market still favors a buy the break mentality.