Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options: 87000

Long Term: Down Change: +5000

Overnight Trade: N -2 @7:30 AM

It should come as no surprise that the corn market is still trading sideways. There is little reason to expect that to change ahead of the supply and demand report. If the crude oil were to break out one way or the other we might see the corn follow, but it doesn’t look like the crude will do anything but trade sideways either. Corn specific news is limited until we get the ethanol production figure later this morning.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options: -33000

Long Term: Down Change: +3000

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

Last week’s low has held as support, so far. However, the market was unable to build on yesterday’s gains and the wheat was weak overnight so further pressure is likely. As usual, what this market needs more than anything else is some good demand news. Instead we have the US Dollar Index creeping higher, which is usually bad news for the wheat.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: -3000

Long Term: Down Change: Flat

Overnight Trade: N -8 @7:30 AM

What the truckers strike gives, the end of the strike takes away. Transportation issues are a common occurrence in S. America and rallies based off of them don’t usually end well. The bean market is trying to roll over and a move through yesterday’s low in the July contract of $10.07 ¼ will confirm the beginning of a move back to the lows.

Live Cattle

Trend

Short Term: Up

Long Term: Down

Opening Calls: 10-30 Lower

Live cattle closed sharply lower on Tuesday, with April leading the declines, losing 2.40 for the session. The strength in the US Dollar continues to weigh on commodities in general and the cattle continue to struggle with resistance near the 50 day moving average. Cutouts were mixed, with choice gaining and select lower. We look for some follow through selling to start the session, with 149.60 the 50% retracement of the recent rally in the April.

Feeder Cattle

Trends

Short Term: Up

Long Term: Down

Opening Call: 30-50 Lower

Feeder cattle futures closed with triple digit losses on Tuesday, led by weakness in the April and May contracts. The selloff came in spite of seeing a small .14 rise in the cash index and a daily number above 212.00 from Mondays' sales. A late day recovery in the corn market erased early weakness in that market and didn't help the feeders' cause. We could see some early weakness in triple digits once again in Wednesday's trade.