Corn                                         Estimated Fund Position
Trends
Short Term: Up
Long Term: Up                        Net Long Futures and Options: 88882
Overnight Trade: Z -1 1/4      Change: +7000
Opening Calls: 1-2 Lower


The corn traded both sides of unchanged overnight, following yesterday’s big move higher. Turn-around-Tuesday type trade is possible since we did see a very large move yesterday, but we must take a buy the breaks attitude right now. The perception now is that the corn crop is getting smaller and the weakness in the US Dollar is making “stuff” worth more Dollars. We should eventually see the December corn test the $4.00 area.

Wheat                                      Estimated Fund Position
Trends
Short Term: Up                        Net Long Futures and Options: -44603
Long Term: Up                        Change: +4000
Overnight Trade: Chicago: Z +1/4 KC: Z -3/4
Opening Calls: Mixed


The December KW posted an impressive outside day higher on the charts yesterday. There wasn’t any follow through buying overnight, but if the corn keeps moving higher and the Dollar stays weak, the wheat will work its way higher as well. There is little fundamental justification for the strength, but a move to the $5.70 area looks possible.

Soybeans                                   Estimated Fund Position
Trends
Short Term: Up                          Net Long Futures and Options: 36384
Long Term: Up                          Change: +4000
Overnight Trade: X -4 1/2
Opening Calls: 4-6 Lower


It is the same story in the soybeans as it is for the corn and wheat. Strength yesterday and a little weakness overnight. The difference between the soybeans and the other markets is that the beans have excellent demand, which is a major supporting factor. Harvest progress is slow and with rain in the forecast I don’t expect much weakness.

Live Cattle
Trend
Short Term: Up
Long Term: Down
Seasonal: Up
Opening Calls: 10-30 Lower


Live cattle futures closed moderately higher across the board on Monday, with support stemming from higher cutouts and rising equity markets. Cutouts showed decent movement at higher money for the day. Equities put in new highs for the year and the weaker US Dollar promoted strength in most commodity markets. Look for some early weakness, as 74 new deliveries were put out against the October contract, with only 12 loads stopped. Early morning trade sees the Dollar lower and the equity markets with modest gains.

Feeder Cattle
Trends
Short Term: Up
Long Term: Down
Seasonal: Up
Opening Call: 10-20 Lower


Feeder cattle futures closed Mixed on Monday, with the active November contract up .40, while deferred contracts posted more modest gains or losses. The sale in Oklahoma City saw good activity, with prices considered $1-$2 higher than a week ago. The solid trade in both cash and futures markets is impressive considering the .14 gains in corn futures. Overnight corn values were slightly lower. The weak Dollar will make extended weakness in the grains hard to come by.