Corn Estimated Fund Position

Trends – March Contract

Short Term:Down Net Long Futures and Options: 232000

Long Term: Up Change: Unch

Overnight Trade: H +6 @7:30 AM

The March corn found support at the 50-day moving average Friday and then made a strong bounce overnight. Indicators had reached oversold territory Friday, so some sort of recovery was warranted, but the size of this bounce is a little surprising. The market will find strong overhead resistance at the $4.05 - $4.06 level and the bulls will need a close above that area soon.

Wheat Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: 11000

Long Term: Down Change: -3000

Overnight Trade: Chicago: H +10 KC: H +9 @7:30 AM

The March KW found support at the December low Friday and then, like the other markets, posted strong gains overnight. It is a little bothersome that the Dollar is making new highs, but the Paris Milling wheat is strong this morning and that is probably all that matters today. A recovery bounce should take the March KW back to at least the $6.40 area, but after that we will need to either see better export sales or a lot more strength in European prices.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: 28000

Long Term: Down Change: -5000

Overnight Trade: H +11 @7:30 AM

Friday the March beans reached the lowest level since early December. This is the bottom end of the sideways trading range the market has been stuck in since October. A close below $9.91 will look very negative on the chart. The market did make a good recovery overnight, but unless we see a move above $10.40 the bears will still have the upper hand.

Live Cattle

Trend

Short Term: Up

Long Term: Down

Opening Calls: 50-75 Higher

Live cattle futures closed sharply higher on Friday, posting more than 2.00 higher closes in all active contracts. Higher cash and higher cutouts, along with signs of fresh money entering the pit provided support for the cattle. For the week Feb live was up 3.40, yet remains discount to the weeks' cash trade. Early bids and asking prices suggest solid gains to open the first full week of the New Year. Winter weather that has entered a majority of the feeding regions is expected to provide additional support.

Feeder Cattle

Trends

Short Term: Up

Long Term: Down

Opening Call: 50-100 Higher

Feeder cattle futures finished off a monster week by closing limit higher in the spot month and more than 4.00 higher in the remainder of the complex. The limit close in one of the two lead contracts will expand daily limits to 6.75 for Mondays' trade. Overnight gains in the corn market of 6-8 cents could limit some of the buying interest in the feeders. We should also start to see the redevelopment of the cash index as a market tool by midweek, as country sales become more active following more than two weeks of holiday inactivity.