Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options: 16000

Long Term: Down Change: -3000

Overnight Trade: N -2 @7:30 AM

The July corn is nearing critical support at the January low. The market managed to regain most of yesterday’s losses by the close, but there was more weakness overnight. The weakness in the Dollar has not helped the corn market, but the weakness in the crude oil seems to be dragging the corn lower. The corn and crude oil charts still look quite similar and the crude is on the verge of making new lows.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: -58000

Long Term: Down Change: +6000

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

The wheat put on its best performance in ages yesterday. The July KW posted an outside day higher and is now testing the 50-day moving average. The Paris wheat is at the highest level since late January, which is helpful. Also supportive is the 5 point drop in Kansas wheat crop condition ratings, which is now at 41% Good to Excellent. Most of the wheat is rated Fair, which now stands at 46%. We will need moisture soon to keep the Fair wheat from dropping to poor.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options: -22000

Long Term: Down Change: -3000

Overnight Trade: N -2 @7:30 AM

The soybeans made another new low for the move overnight and another step closer to the January low. It is likely that we begin to see some consolidation as the market approaches the January low, but bounces are likely selling opportunities as export sales slowdown and planting approaches.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: Mixed

Live cattle futures closed modestly lower on Monday, with the exception of the spot April contract backing off 1.07 for the day. The weakness in the front month widened near term basis levels to nearly 8.00. We should see narrowing of basis levels into weeks' end, with futures strength or a weakening cash trade. Showlists were modestly higher than a week ago, with our list still showing less than 1% carryover. Packers continue to be able to procure cattle without having to buy many in the open market.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: Mixed

Feeder cattle futures settled moderately lower on Monday, with April pacing the losses down 1.17 at the close. Corn values recovered from midday weakness to close less than a penny lower for the session. Overnight trade sees the corn off a couple of cents and outside influences mixed. The Dollar and equities are working lower so far. Cash index levels were higher on Monday but appear to be losing a good share of last weeks' momentum.