Corn                                             Estimated Fund Position
Short Term: Down
Long Term: Down                       Net Long Futures and Options: -32952
Overnight Trade: Z +1/2             Change: -2000
Opening Calls: 1-2 Higher

The corn was flat yesterday and made a small bounce overnight. The corn is still stuck in a sideways pattern, but now appears to be headed back to the upper end of the trading range if the outside markets stay supportive. Export sales were ok at 344,900 MT of old crop and 594,000 MT of new crop sales. We are going to need to see big demand numbers to absorb the big crop.

Wheat                                             Estimated Fund Position
Short Term: Down                           Net Long Futures and Options: -61182
Long Term: Down                           Change: -1000
Overnight Trade: Chicago: Z +2 1/2 KC: Z +3
Opening Calls: 1-3 Higher

The December KW posted a decent bounce overnight and was even able to take out yesterday’s high. However, there will be strong resistance just above the overnight high and the wheat will need to see a strong move out of the corn and soybeans to break through the resistance. Export sales were poor at 405,700 MT, so that won’t help the market today. Last week sales were a marketing year high, but today’s numbers were back to normal.

Soybeans                                           Estimated Fund Position
Short Term: Down                              Net Long Futures and Options: 31965
Long Term: Down                              Change: -3000
Overnight Trade: X +9
Opening Calls: 5-10 Higher

The soybeans showed some strength overnight, which is definitely an exception to the rule is week. The bean market has struggled, but demand is still very good. New crop sales were 1.11 MMT. New crop sales are already over 500 million bushels, which is outstanding. The $9.60 - $9.70 area was support earlier in the week, look for it to act as resistance today.

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

Live cattle futures reversed their early weakness to close higher on Wednesday and appear ready to open higher in today’s trade. Cutout values were lower, while slaughter levels remained aggressive at 129,000. Cash trade is likely to take place today, with buyers and sellers ready to start their long holiday weekend. We look for cash to come in at least steady from week ago levels, with an outside shot at better money. Next week’s short kill could be a limiting factor, but the future is looking brighter for the cattleman.

Feeder Cattle
Short Term: Down
Long Term: Down
Seasonal: Down
Opening Call: 20-40 Higher

Feeder cattle futures had an impressive recovery on Wednesday, holding Tuesday’s lows in early trade before rallying above the previous two days highs and closing 1.50-1.70 higher for the day. The rally was accomplished with rising open interest, signifying fresh buyers into the market. Overnight activity is showing good follow through buying, with most contracts .30-.50 higher. Corn prices were near steady overnight and remain in a negative mode.