Corn Estimated Fund Position

Trends – March Contract

Short Term:Down Net Long Futures and Options: 210000

Long Term: Down Change: +8000

Overnight Trade: H -1 @7:30 AM

The March corn has made two positive closes in a row and briefly made a new high for the move overnight. The 40 and 50-day moving averages lie above the market at the $3.95 area and trend line resistance will come in near $4.00. These areas look like good upside targets this week. The market has been in need of a corrective bounce and we are in the midst of if now.

Wheat Estimated Fund Position

Trends – March Contract

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

Long Term: Down Change: +1500

Overnight Trade: Chicago: H +5 KC: H +3 @7:30 AM

The March KW is testing trend line resistance, last week’s high, and the 9-day moving average, all of which come in near $5.85. A close above $5.85 will suggest we will see a short covering rally and a bounce back to $6.18. A better week of export sales would make such a bounce much more likely.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Down Net Long Futures and Options: 4000

Long Term: Down Change: -7000

Overnight Trade: H +3 @7:30 AM

The March soybeans managed a mid-range close yesterday and saw some strength overnight, but the chart damage has been done and this market is likely to head lower. Indicators are oversold, but that is the best hope for the bulls right now. We are seeing more cancellations by the Chinese at a time when huge sales were what was keeping buying interest alive. Sell rallies.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: 30-60 Higher

Live cattle futures took up where last week ended, with more long liquidation leading to limit or near limit losses toward the end of the open outcry session. Lower cutouts and some modest cash movement in the north at lower prices have this market searching for a near term bottom. The post pit trade on Tuesday afternoon saw some recovery effort that should spill over into this morning's open. We are still 2 1/2 weeks away from first notice day in the February contract, leaving the disconnected market in charge for a while longer.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: 30-60 Higher

Feeder cattle futures closed sharply lower, with the exception of the spot January contract, as it ready’s itself for the settlement to the cash index after closing trade a week from tomorrow. The index has dropped to 221.87, off 4.52 from Friday's settlement but 7.40 above the January board. This morning's weaker Dollar and the activity in outside markets suggest that we could see a firmer open in the feeders this morning. Corn is off a penny or so as we write.