Corn Estimated Fund Position

Trends – March Contract

Short Term:Down Net Long Futures and Options: 202000

Long Term: Down Change: +7000

Overnight Trade: H -3 @7:30 AM

The corn market is oversold and in consolidation mode. It wouldn’t be a surprise to see the March corn make a corrective bounce back to the 40 and 50-day moving averages, which are just below $4.00. Crude oil hasn’t built upon Friday’s gains and the Dollar is up again, so any bullishness in the market will have to come from export sales.

Wheat Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: -2000

Long Term: Down Change: -2000

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

The March KW managed a positive close Friday, but it was well off the highs, so it didn’t give the bulls much confidence overnight. It looks like the wheat will test some trend line resistance this week, but it will probably trade sideways into the trend line. The bulls need a good export sales report more than anything right now.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: 11000

Long Term: Down Change: Unch

Overnight Trade: H -8 @7:30 AM

The March beans made a new low for the move overnight and the only thing going for the market right now is that the technical indicators are oversold. Export sales have been good, but after the cancellations by China on Friday, traders are worried about more. The S. American crop will be very good and with our high stocks levels, the bulls have to see the big sales continue and avoid the cancellations.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: Mixed

Live cattle futures finished a rough week, with a quiet day on Friday. Most contract months posted modest gains for the day, but weekly totals were ugly, with February off more than 6.00 for the week. Cutout values gave back some of last weeks' gains on Monday, with buyers showing signs of slowing down. We continue to have a sizable disconnect between cash and the board overall, but last weeks' movement was similar in both markets. Look for this week to see some narrowing in the basis, as we move ever closer to the February delivery period.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: Mixed

Feeder cattle futures continued to struggle in the front two months on Friday, losing 1.55 and .75 respectively, while deferred contract posted modest gains. For the week March feeders were off 7.55 and are now more than 21.00 discount to the cash index. Corn was off .14 for the week and is struggling, with 3-4 cent losses overnight. Like the fat market, we look for some of the disconnect between cash and futures in this market to fade away as we push toward months end.