Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options: 89000

Long Term: Down Change: +8000

Overnight Trade: N -2 @7:30 AM

The corn made it back to the upper end of the trading range Friday, but the market spent most of the overnight session trading lower. There isn’t much fresh corn specific news today and the crude oil is lower, so spread traders are favoring the beans and wheat versus the corn, at least for now. For the bulls, the resistance is very clear, the July contract has to clear $4.07 ¼ for this market to gain any upward momentum.

Wheat Estimated Fund Position

Trends – July Contract

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

Long Term: Down Change: +5000

Overnight Trade: Chicago: N +2 KC: N +5 @7:30 AM

The wheat was firm overnight, building on the strength from late last week. Most contracts were able to take out Friday’s high and short term trend indicators are beginning to turn up. A positive close today would be very supportive. This afternoon we will see crop condition ratings from the HRW states, and it will, of course, be interesting to see how traders react to those numbers. Supply problems probably won’t bother traders much unless we are seeing stronger demand.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Up Net Long Futures and Options: 7000

Long Term: Down Change: +2000

Overnight Trade: N +3 @7:30 AM

The beans made a new high for the move overnight. The truckers strike in Brazil hasn’t been resolved yet, but there isn’t much other bullish news for the beans to work with. Technical indicators are getting overbought and it is about time for this market to have a setback. The market is well above the 50-day moving average and the momentum is clearly up. A move up to the $10.70 area in the July contract is still possible, but a move beyond that is highly unlikely.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: 20-40 Higher

Live cattle futures closed mostly higher on Friday, with the new lead April contract gaining 1.90 for the day. For the week April was 3.20 higher, with deferred contracts posting more modest gains. Cash trade finally saw some action late on Friday, with $159 catching a majority of the action. The steady cash seemed a victory to some and disappointing to others. Cutouts were 7.00 higher for the week but came at the expense of lower movement.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: 30-50 Higher

Feeder cattle futures closed mixed on Friday, with triple digit gains in the front two months and as much as .55 lower in the deferred. Corn was flat last week and is currently a couple cents lower overnight. Fridays' cash index dropped .55 to 107.72 and is now less than 6.00 premium to the March futures. We expect cash demand to improve as weather and feedlot conditions improve.