Corn Estimated Fund Position

Trends – March Contract

Short Term:Down Net Long Futures and Options:

Long Term: Up Change:

Overnight Trade: H -3 @7:30 AM

The corn was weaker overnight as the market consolidates ahead of this morning’s reports. Critical support lies at the $3.91 area in the March contract and failure at that level would project a move below $3.80. Expectations are for friendly numbers today, so the bulls need to see something friendly to have a chance at regaining the momentum. The best hopes are lower acreage and lower than expected quarterly stocks.

Wheat Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options:

Long Term: Down Change:

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

The wheat is still in free fall mode. The market isn’t getting any help out of Europe, the Dollar is stronger, and there won’t be any wheat specific market moving news in today’s report. Indicators are oversold and we are bound to be finding some demand on this break are the only two things going for the wheat right now.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options:

Long Term:Up Change:

Overnight Trade: H -5 @7:30 AM

The soybeans are still range bound, but are trading in the upper end of the range, so if there does happen to be something bullish is today’s reports, there is a chance of a break out. I don’t think that the report will end up being very bullish since there is no way the numbers will change enough to get rid of the big stocks we have, but it could turn out to be less bearish. Unless we get something exciting, plan on the market staying range bound.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: Mixed

Live cattle Futures closed limit lower in the front two months on Friday, with deferred contracts sharply lower as well. For the week February live cattle was off 5.00, while the cash market rallied nearly that much. The disconnect has reached historic levels, with basis of 10.00 or more heading in to this week’s trade. We will see expanded limits this morning of 4.50 in the live cattle and will also get to deal with the monthly supply demand report at 11:00 am. Outside markets are mixed, with the Dow and equities higher overnight.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: Mixed

Feeder cattle futures reached limit lower on Friday in the March contract, expanding today's limits to 6.75, with an important grain report out at midsession. The feeder board is now 13.00 to 23.00 discount to the current cash index, creating an unheard of disconnect in this market. Overnight corn prices are off 4 cents ahead of the 11:00 report. The expanded limits ended the last selloff in the cattle, creating even more uncertainty heading into this mornings' opening.