Corn Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: 122000

Long Term: Down Change: +11000

Overnight Trade: H -1 @7:30 AM

The corn posted a very good close yesterday, particularly the December contract which closed above the 50-day moving average for the first time since mid-January. The reaction to today’s supply and demand report will determine the direction of today’s close, but it appears that at neutral report should elicit a positive reaction since the momentum of the market is up at the moment. The March contract should at least be able to test $3.94.

Wheat Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: -23000

Long Term: Down Change: Unch

Overnight Trade: Chicago: H -4 KC: H -3 @7:30 AM

The rise in the wheat market has stalled and the market is now drifting sideways. The Dollar is back up and the Paris wheat is down, so there isn’t much help for the wheat there. Today’s report probably won’t held any market moving information, which adds to the directionless action. The best hope for the wheat is more strength in the crude oil and a good export sales report.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: -22000

Long Term: Down Change: +3000

Overnight Trade: H -2 @7:30 AM

It looks like the beans are primed for a big move in one direction or the other. Judging by the size of the ending stocks it will probably be to the downside. However, if the USDA comes up with a bullish surprise or the export sales report is surprisingly large we could see some buying interest. It is that very dilemma that is keeping the market from going anywhere expect sideways.

Live Cattle

Trend

Short Term: Up

Long Term: Down

Opening Calls: 30-50 Higher

Live cattle futures got off to a fast start for the week, gaining more than 2.00 in the front months after Friday's limit higher move. The board appears to be working toward cash, while cutout values in the beef continue to work lower. Showlists are smaller overall vs week ago numbers, with southern lists shrinking the most. Outside markets are mixed, with the Dollar and equities both running higher on the day.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: 30-50 Higher

Feeder cattle futures closed sharply higher on Monday, with the front two months more than 4.00 stronger. The rally came in spite of stronger corn futures and a declining cash index. The gap between March futures and the cash index has narrowed to just over 5.00 after ending the week above 10.00. Corn prices are off a couple cents overnight, with monthly supply/demand numbers due out at 11:00 am.