Corn Estimated Fund Position

Trends – March Contract

Short Term:Down Net Long Futures and Options: 238000

Long Term: Up Change: -3000

Overnight Trade: H -1 @7:30 AM

The corn market was quiet overnight. The market appears to be set for a bit of consolidation after yesterday’s directionless close. Traders may be ready to just mark time until Monday’s supply and demand report. The big news of the day will be the ethanol production figure to see if the price of crude oil is starting to take a toll. Tomorrow’s export sales report should be good, so the overall demand picture is still solid.

Wheat Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: 17000

Long Term: Down Change: +3000

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

The wheat posted a mid-range close, which was a little disappointing following the strong gains the market posted early in the session. The overnight trade was light and directionless, which mirrors the lack of movement in the Paris contract. The Dollar is strong, which always makes me nervous, but technical indicators are starting to give buy signals and there is a good chance that March KW makes it to $6.60 eventually.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: 44000

Long Term:Up Change: +6000

Overnight Trade: H -1 @7:30 AM

The March soybeans are getting up to the top end of the December range, which to me means it is time to sell. Perhaps there will be something friendly in Monday’s report and perhaps export sales will be large tomorrow, but ending stocks will still be large, which should keep the market range bound. Plan on two sided trade today.

Live Cattle

Trend

Short Term: Up

Long Term: Down

Opening Calls: 20-40 Higher

Live cattle futures closed moderately to sharply lower on Tuesday, in spite of aggressive cash trade as high as $170-$171 this early in the week. The board weakness seemed to stem more from the weakness in equity and energy markets than anything happening in the livestock sector. We should see some board strength this morning, with equities rebounding significantly from Tuesdays' selloff. The February contract is now 4-5 Dollars discount to the recent cash trade. Cutout values were no better than mixed on Tuesday, with demand remaining decent.

Feeder Cattle

Trends

Short Term: Up

Long Term: Down

Opening Call: 30-50 Higher

Feeder cattle futures closed 250-300 points lower on Tuesday and traded to limit lower during the meat of the day session. The board decline came in the face of the cash index rising to 232.10 and leaves January feeders 740 points discount to the index. Corn is modestly lower in overnight trade, after giving back a couple of cents on Tuesday. We expect some rebound in the feeders, as outside influences are more supportive overnight.