Corn                                               Estimated Fund Position
Short Term: Up
Long Term: Down                        Net Long Futures and Options: -1515
Overnight Trade: Z +2 1/4           Change: +2000
Opening Calls: 1-3 Higher

The corn, surprisingly, posted an outside day higher on the charts yesterday and had follow through buying overnight. Outside market influences have been very supportive the past two days, but for the most part, all the markets have been choppy. We will need to see a move t0 $3.38 to take out Tuesday high in the corn and start to move out of the range. Will that happen today? The inconsistency we have seen lately suggests, no.

Wheat                                            Estimated Fund Position
Short Term: Up                             Net Long Futures and Options: -55636
Long Term: Down                        Change: -1000
Overnight Trade: Chicago: Z +3 ¼ KC: Z +2 3/4
Opening Calls: 1-3 Higher

The wheat came back from sharp losses to close just below unchanged in yesterday’s trade, then saw some buying overnight. This market has been sideways/higher for about a week and the export market has improved, which is generating short covering activity. It still looks to me like strength is a selling opportunity. We will need more than one week in a row of good sales to see consistent gains.

Soybeans                                         Estimated Fund Position
Short Term: Up                               Net Long Futures and Options: 43170
Long Term: Up                                Change: -1000
Overnight Trade: X +12 1/2
Opening Calls: 10-15 Higher

The September soybeans are testing the June high. Strong demand and tight supplies are supporting the front month as we head into the delivery period. The November contract was higher overnight, but is stuck in sideways pattern. The strong demand is supportive to the new crop as well, but the threat of harvest pressure keeps gains in check. A move toward $10.60 is possible in the November contract, but unless there is an early frost, a move to that level would be a selling opportunity.

Live Cattle
Short Term: Down
Long Term: Down
Seasonal: Up
Opening Calls: 20-40 Higher

Live cattle futures closed modestly higher on Thursday and appear to be ready to open higher today. Cash trade looks like it is over for the week, with strong packer demand at the $85 level cleaning up most of the southern yards. Northern cattle could see some light trade yet, but for the most part trade is over. Asking prices for next week’s list is expected to be $87-$88 in the south and $138-$140 in Nebraska. Slaughter remains aggressive, due to continued good packer margins. Cutouts were moderately lower but remain higher for the week.

Feeder Cattle
Short Term: Down
Long Term: Down
Seasonal: Down
Opening Call: 20-30 Higher

Feeder cattle futures closed .25-.50 lower on Thursday, continuing their recent momentum and taking their lead from the reversal up in corn rather the higher live cattle trade. Overnight activity is positive so far, with gains of .20-.40 posted in the session. Outside influences look to be mostly supportive this morning, with equity and most commodity markets looking for positve openings. Cash feeders have continued to struggle seasonally, but should see supplies begin to tighten into mid September.