Corn Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: 115000

Long Term: Down Change: -7000

Overnight Trade: H -2 @7:30 AM

Yesterday’s supply and demand numbers were friendly with ending stocks coming in 50 million bushels lower than last month at 1.827 billion bushels. The reaction to the report wasn’t very bullish, however, and the market ended the day lower and has seen follow through selling overnight. The trend in ending stocks is lower, which is generally friendly to the market, but it seems that traders were more interested in the declining price of crude oil than anything else. The bulls need the March corn to stay above $3.83 ½ today.

Wheat Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: -29000

Long Term: Down Change: -6000

Overnight Trade: Chicago: H -4 KC: H -2 @7:30 AM

Wheat ending stocks were slightly higher at 692 million, which is not market moving information, but it didn’t give the bulls anything to work with to keep the market moving higher either. Overnight the March KW slipped back below the 9-day moving average, which looks negative on the chart, so the bulls will need to see a positive close today to avoid a retest of the recent lows.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: -30000

Long Term: Down Change: -8000

Overnight Trade: H -2 @7:30 AM

Soybean ending stocks were lowered to 385 million, which is still plenty, and definitely not low enough to get the bulls excited. Yesterday’s close and the follow through selling overnight look negative on the charts. The market was never able to capitalize on last week’s strength and now we are going to begin another leg lower. The March beans will find support at $9.56, but the market is probably headed to $9.20.

Live Cattle

Trend

Short Term: Up

Long Term: Down

Opening Calls: 20-40 Higher

Live cattle closed mixed on Tuesday, with the front two months higher and deferred contracts moderately lower. Bull spreading was an obvious factor in Tuesday's trade, with the front 6 months progressively weaker onthe close. Cash trade is getting close to taking shape, with asking prices of $164 looking very solid at midweek. Open interest rising on the day suggests more willing buyers ready to re-enter the live cattle market.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: 20-40 Higher

Feeder cattle futures were unable to hang on to early gains and closed with triple digit losses on Tuesday. Weakness in the corn futures was not enough to keep fresh sellers out of the market. Cash index levels improved on the day by .24, but cash news in general remained unimpressive. Corn is off another couple of cents in overnight trade.