Corn                                          Estimated Fund Position
Short Term: Up
Long Term: Up                          Net Long Futures and Options: 20132
Overnight Trade: Z -1                Change: +4000
Opening Calls: 1-2 Lower

The corn finished the overnight session lower, but at the session highs. Exports sales were excellent at 1.22 MMT. If we can see totals like this on a consistent basis, there won’t be so much concern about the USDA over estimating exports. Resistance is clearly at the $3.47 - $3.48 level in the December contract. A move through that this week will look very friendly.

Wheat                                        Estimated Fund Position
Short Term: Down                     Net Long Futures and Options: -61461
Long Term: Down                     Change: +2000
Overnight Trade: Chicago: Z -5 1/2 KC: Z -7 1/2
Opening Calls: 5-7 Lower

Wheat was very strong going into the close yesterday, but gave up a lot of those gains in overnight trade. There really wasn’t much reason for the strength, so it wasn’t surprising that it didn’t last. Yesterday’s report numbers were negative and it is likely that we will see new lows in the near future. Export sales were adequate for the second week in a row at 538,200 MT, so at least not all the news is bad.

Soybeans                                    Estimated Fund Position
Short Term: Down                      Net Long Futures and Options: -846
Long Term: Down                      Change: +3000
Overnight Trade: X -1/4
Opening Calls: Mixed

Export sales were excellent at 1.38 MMT of beans and nearly 200,000 MT of soybean oil with old crop and new crop combined. If it weren’t for the fact that harvest was underway the bean market would be doing much better, however, I still think the soybeans will struggle to hold gains due to harvest pressure.

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

Live cattle futures scored a key reversal in the active December contract on Wednesday. After posting new lows in the opening ten minutes, Dec live cattle turned higher, taking out the previous days high and closing near the session highs. The reversal higher was accompanied by an increase of more than 2,600 in open interest. New buyers were in charge of the rally heading into the fourth quarter of the year. Cash still needs to show improvement, but producers have more of reason to hold for better prices after Wednesday’s futures trade. Overnight activity has shown follow through buying, with gains of as much as .35 posted so far.

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

Feeder cattle futures joined the fat market, by reversing early weakness and posting solid gains for the day. The outside day higher on higher open interest is just what this market needed to put a stop to the steady decline seen over the past three months. Overnight trade was higher as well, with gains of around .30 seen thus far. Overnight corn prices were modestly lower but remain in a solid up trend and approaching major resistance, both technically and seasonally.