Corn                                Estimated Fund Position
Trends
Short Term: Up
Long Term: Up                 Net Long Futures and Options: 8138
Overnight Trade: Z -1      Change: -2500
Opening Calls: 1-2 Lower

The corn was very active overnight, trading in a wide, two sided trading range in decent volume. The December corn is stuck between Friday’s high and the 50-day moving average. Today’s action is going to be important from a technical standpoint. Yet another higher high will make short traders even more nervous, but a close back below the 50-day moving average will make it look like the correction is over. Forecasts are nonthreatening. Outside market influences are flat.

Wheat                             Estimated Fund Position
Trends
Short Term: Up               Net Long Futures and Options: -62461
Long Term: Down           Change: -5000
Overnight Trade: Chicago: Z +3 1/4 KC: Z +4 3/4
Opening Calls: 3-5 Higher

On Friday the wheat moved back to the lower end of the trading range. Overnight the wheat recovered some of the losses, but the gains we not impressive. There isn’t any wheat specific, market moving news and there is no indication that the wheat will break out of the trading range today. Two sided trade is likely. Buy the
December KW below $4.70 and sell above $4.80.

Soybeans                             Estimated Fund Position
Trends
Short Term: Down                Net Long Futures and Options: -246
Long Term: Down                 Change: +2000
Overnight Trade: X -11 1/4
Opening Calls: 10-15 Lower

The soybean trade was active overnight. The November soybeans have already posted an outside day down on the charts. Forecasts are not threatening and harvest activity is expanding, which makes it difficult to rally, no matter how good the demand is. Look for the November soybeans to head back to the $9.00 area today or
tomorrow.

Live Cattle
Trend
Short Term: Down
Long Term: Down
Seasonal: Up
Opening Calls: 10-20 Lower

Live cattle futures finished the week with modest gains, while cash and beef cutouts failed to fare as well. Cutouts were sharply lower on Friday, closing out the week at the lowest level of the past three months. Cash traded steady at best and was lower than the prior week by Friday in some cleanup trade. Packers did not appear to load their boats with inventory, giving producers hope that tightening inventories will eventually lead to higher cash trade. Slaughter for the week remained fairly aggressive, but apparent demand remains tepid.

Feeder Cattle
Trends
Short Term: Down
Long Term: Down
Seasonal: Up
Opening Call: Mixed

Feeder cattle futures closed slightly lower for the week, which was somewhat impressive considering cash cattle weakness and corn strength for the week. Overnight corn prices were modestly lower, but it looks like feeders need some positive input from the live cattle in order to sustain any strength of their own. Support levels
between 96.10-96.30 basis the October feeders needs to hold to prevent a move below the 95.00 level.