Corn Estimated Fund Position

Trends – July Contract

Short Term:Down Net Long Futures and Options: -9000

Long Term: Down Change: -10000

Overnight Trade: N Unch @7:30 AM

Corn planting was a little slower than expected with only 2% complete compared with expectations of 5-6%. That didn’t seem to worry anyone, however, and the market was flat overnight. The July corn didn’t take out yesterday’s low overnight, but it still looks like we will have a test of the March low, which is $3.75. Indicators are oversold and this market is due for a bounce. If the weather causes ideas of acreage shifting from corn to beans, that would definitely help kick-start a rally.

Wheat Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options: -82000

Long Term:Up Change: -12000

Overnight Trade: Chicago: N -4 KC: N -7 @7:30 AM

Winter wheat conditions deteriorated, which was expected. US wheat dropped 2 points to 42% Good to Excellent. Kansas wheat dropped 5 points to only 28% Good to Excellent. One of the biggest changes was Oklahoma’s Poor to Very Poor, which jumped 10 points to 26%. The market looks pretty ugly after yesterday’s beating, but the July KW is approaching the March low, which will be critical support.

Soybeans Estimated Fund Position

Trends – July Contract

Short Term: Down Net Long Futures and Options: -61000

Long Term: Down Change: -4000

Overnight Trade: N +5 @7:30 AM

The soybeans are consolidating at the lows. The bean market seems to be benefiting from spread trade as much as anything and for the time being we have to look at rallies as selling opportunities. There isn’t much fresh news for the soybean market right now and the biggest thing to talk about with be the corn planting pace and the export sales report on Thursday.

Live Cattle

Trend

Short Term: Down

Long Term: Up

Opening Calls: 10-30 Lower

Live cattle futures posted modest gains on Monday, overcoming early follow through selling after Friday's limit lower close in the April. Choice cuts continue to work higher, with the spread widening over the select. Showlists appear to be larger overall, with a bit larger carryover than we have seen over the past few months. The Dollar continues to flirt with the 100.00 level, keeping imports coming and limiting exports. The 109,000 head kill on Monday gets the week off to a better start.

Feeder Cattle

Trends

Short Term: Down

Long Term: Up

Opening Call: 20-40 Higher

Feeder cattle futures closed mostly higher on Monday, with the spot April the lone casualty. Grain prices continue to struggle, with the Dollar strength limiting upside potential in that sector. The cash feeder index was down .11 on Monday, but still maintains a 7.50 premium to the spot futures contract. We look for two sided trade, with a little narrower trading range.