Corn Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: 244000

Long Term: Up Change: Unch

Overnight Trade: H Unch @7:30 AM

The March corn made a new high for the move by ¼ cent yesterday and made the best close of the move, but one would still have to say that the overall pattern of the corn market is pretty sideways. With little in the way of fresh news it is difficult to see the market making much of a move in either direction at this point. Plan on more choppy trade.

Wheat Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: 22000

Long Term:Up Change: -4000

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

The wheat was very active yesterday and traded in a large range. The US markets finished at the bottom of that range despite the strength in the Paris wheat. The $6.50 area should be solid support for the March KW, especially if the European prices are firm. As usual, what the US wheat market needs is better export news to justify some of the strength. The export sales report will be delayed until Monday, so we won’t see fresh information this week.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: 44000

Long Term:Up Change: +4000

Overnight Trade: H -2 @7:30 AM

The sideways trade continues in the soybeans and there isn’t any reason to expect that to change. Overnight trading volume was sparse and there isn’t any fresh news. The January supply and demand report is a long way away and no matter how good demand is that report will still show large stocks. The market is stuck and will probably stay that way until the New Year.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: 20-40 Higher

Live cattle futures closed moderately higher across the board on Monday, with the spot December contract posting triple digit gains. Some scattered bids of $159 in the south suggest that cattle buyers are likely to be more aggressive ahead of the Christmas holiday. Cutout values were firm on Monday and strength in equity markets is adding support to the meats. We also saw supportive numbers in the cold storage report and have hog and pig numbers set for release this afternoon. Our showlist was off 15% from a week ago, while national surveys are saying numbers are higher.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: 20-30 Higher

Feeder cattle futures saw moderate gains on Monday and appear to be getting a bit higher bid this morning. Cash index levels dropped 4.93 on Monday to 225.70, with a daily number right near that index figure. We are expecting to see some more stable trade to develop in the cash, following the recent windfall decline. Corn is narrowly mixed in overnight trade. Wednesday's trading session will be shortened to a noon close.