Corn Estimated Fund Position

Trends – March Contract

Short Term:Down Net Long Futures and Options: 204000

Long Term: Down Change: -6000

Overnight Trade: H +1 @7:30 AM

The corn couldn’t manage a positive close yesterday, but the market was a little higher overnight. It still looks like the March contract wants to go up and test the resistance at the 40 and 50-day moving averages. Export sales are delayed until tomorrow, but we will get the ethanol production figure today. A rebound in that figure would be helpful, but it isn’t likely to happen.

Wheat Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: -500

Long Term: Down Change: Unch

Overnight Trade: Chicago: H +5 KC: H +4 @7:30 AM

The March KW failed to move through trend line resistance yesterday. The market was higher overnight, but the market has been characterized lately by a strong overnight session and a poor close. There is talk that US SRW is competitive on the world market now, but we haven’t seen the sales to prove it yet. I still can’t be bullish until we see the March KW clear $5.85.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: 4000

Long Term: Down Change: Unch

Overnight Trade: H +4 @7:30 AM

The soybeans are oversold and trying to relieve that condition by going sideways. A good export sales report could help the market post a bounce, but traders are more fearful of cancellations right now than they are of big sales. S. American weather still looks favorable and rallies are to be sold.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: Mixed

Live cattle futures posted moderate to strong gains on Wednesday, with short covering appearing to be the main feature of the day. Cutout values continued to work lower, with modest cash trade being prompted at lower levels by the wide basis. Thursday could be all about foriegn policies, as the ECB looks to add significant QE over the next 12 months. Canada has already lowered interest rates this week in an effort to battle sinking energy prices. We are hearing that at least one packer has had to make purchases this week for Friday's kill.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: Mixed

Feeder cattle responded to higher live cattle trade with a rally of their own on Wednesday, bouncing off of early lows by more than 5.00 and closing up 2.82 in the active March contract. With corn prices seemingly stuck in a range between their 50 and 100 day moving averages, feeders may be ready for a better recovery, as we head into the end of January. Overnight corn prices are up a penny or so, with early bids and asking prices on the feeders leaning to the positive.