Corn Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: -150605

Long Term: Up Change: -4000

Overnight Trade: H -3 @7:30 AM

The corn market is consolidating and trading volume looks like it is slipping back to holiday levels. Fresh news is sparse. S. American forecasts are less threatening and export sales aren’t out until Thursday. Today’s ethanol production figure will be the only major fundamental input. The charts still suggest the March corn has the potential to reach $4.50, but we are going to have to have some news to create some buying enthusiasm.

Wheat Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: -111634

Long Term: Down Change: +2000

Overnight Trade: Chicago: H -2 KC: H +1 @7:30 AM

The March KW posted an outside day higher on the chart, which could be an indication of a bottom in the market, but so far we haven’t seen much follow through buying. Wheat exports will determine if we see much of a recovery in wheat prices. There are indications that we will see more business from Brazil and Egypt, but we need to see confirmation of that business. With good sales and move to $6.75 in the March KW is possible.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: 107598

Long Term:Up Change: +6000

Overnight Trade: H Unch @7:30 AM

Soybeans were strong yesterday because the Chinese can’t seem to quit buying US beans. The March contract reached the $13.10 resistance and now the market is consolidating around that area. Indicators are not extremely overbought and a few more purchases will send the March contract to the $13.30 area again. However, once we get to that level the talk will likely shift back to the eminent end to our export program and the large world supplies we are facing.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: 10-30 Higher

Live cattle futures closed sharply higher in the front two months on Tuesday, with February and April advancing to all-time record high prices. Deferred contracts posted more modest gains, with April/June spread moving out to 7.50 on the close. Open interest in the live pit was on the rise, gaining 4,316 contracts on the day. Cutout values continue to explode higher, with both cuts moving over the 220.00 level. Overnight activity is trending higher, with most contracts gaining from .10-.25 as we write.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: 20-40 Higher

Feeder cattle futures rallied along with the fats on Tuesday, but managed to hold onto about half of the midday gains. After selling off about 8 cents at midsession, corn futures recovered to 3 cent losses by the close. The corn recovery prompted the selling into the close of the feeders. Overnight trade has corn off another 2-3 cents and feeders gaining back about .40 in the front few months. Feeders need to see better buying in the deferred live cattle in order to feel more comfortable on the buy side.