Corn Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: +1000

Long Term: Up Change: +8000

Overnight Trade: N -1 @7:30 AM

The July corn closed above the 50-day moving average for the first time since January 12th, which should give the bulls some confidence. The next step is to move through the February high of $4.07 ¼. Such a move should put the bulls in control of the market, but in order for that to happen we can’t have any bearish numbers from USDA next week.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: -53000

Long Term:Up Change: +3000

Overnight Trade: Chicago: N -7 KC: N -8 @7:30 AM

The wheat was weak overnight, which is at least partly due to the improved crop condition ratings in Oklahoma and Texas. The Good to Excellent ratings improved by 4 points in each state to 44% and 55% respectively. Kansas didn’t fare as well with the Good to Excellent staying unchanged at 41% and Poor to Very Poor moving up 4 points to 17%. The Dollar is down again today, which should help out, but a break back to $5.65 is possible in the July contract this week.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: -24000

Long Term: Down Change: +6000

Overnight Trade: N -3 @7:30 AM

The July soybeans stalled out near the 40 and 50-day moving averages yesterday and then saw some pressure overnight. The bear market correction may have run its course, so we are likely in for a bit of consolidation. A major move in either direction is unlikely until we get next week’s reports out of the way, so plan on some back and forth trade.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: Mixed

Live cattle futures closed limit higher in the lead April contract and posted triple digit gains across the board, with active bull spreading a feature. Next objective for the April is near 162.50, then above the 166.00 level. Open interest continues to rise on the rally, as new money moves back into the cattle market. Showlists were mixed, with a slightly lower bias overall. Our list was modestly higher, with a bit over 2% carried over from a week ago. Limits in the live cattle are expanded to 4.50 for today's trade.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: Mixed

Feeder cattle futures didn't reach limit higher on Monday but posted 2.10-3.60 gains across the complex. Cash index levels are rising, reaching 115.60 on Monday but nearly1.50 discount to the expiring March futures. Monday's cash trade appears to have been quite a bit firmer, suggesting another solid up in the index today. Corn is modestly lower in overnight trade.