Corn Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: 252000

Long Term: Up Change: +4000

Overnight Trade: H +4 @7:30 AM

The corn made a new high for the move overnight thanks to the relentless strength in the wheat and also some of the general commodity strength we saw overnight. Corn export sales were ok at 693,500 MT for the old crop and yesterday’s ethanol production figure was supportive. $4.26 is still a viable upside target for the March corn and today’s action is making it look more likely.

Wheat Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: 35000

Long Term:Up Change: +12000

Overnight Trade: Chicago: H +14 KC: H +14 @7:30 AM

Wheat export sales improved from the prior week to 476,300 MT for the old crop. This probably isn’t a big enough figure to get traders excited about improving fundamentals of the wheat market, but that doesn’t matter right now, because all anyone can talk about is Russian, the falling Ruble, and ideas that we might see better export sales business at some point. We nearly reached the $7.07 upside target in the March KW overnight. A close above that level will make $7.44 the next objective.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: 35000

Long Term:Up Change: Unch

Overnight Trade: H +17 @7:30 AM

Soybean export sales were very good at 696,000 MT for the old crop. The sales numbers are shrinking, but we don’t need very big numbers at this point. The soybean market itself is still sideways. Demand numbers are great, but that can’t overcome the fact that we have plenty of soybeans. Look for the directionless trade to continue.

Live Cattle

Trend

Short Term: Down

Long Term: Down

Opening Calls: 200-300

Live cattle futures Traded in a huge range on Wednesday, closing lower to sharply lower in most contract months. Some deferred contracts traded in a range of limit lower to limit higher and back to lower by days' end. Limits in feeders have been expanded to 4.50, while live cattle remain at 3.00 for the day. Cash trade in the south got started on Wednesday, with $157 the common price seen in the region. Friday's on feed report is estimated to show on feed at 101%, placements of 96% and marketings of 90% for the month of November. Open interest dropped over 9,000 contracts during Wednesday's trade.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: 200-400 Lower

Feeder cattle futures closed down the 3.00 limit for the 5th consecutive day on Wednesday and will be trading at expanded limits of 4.50 for Thursday. If the market locks limit lower on Thursday it will expand to 6.00 on Friday. We look for trade to break loose at these expanded levels, with the possibility of wide price swings by the end of the day. Cash index level dropped to 234.69 on Wednesday but remains 18.00 premium to the front month futures contract. We hear that some country sales are postponing sales until the market is more stable.