Corn                                          Estimated Fund Position
Trends
Short Term: Up
Long Term: Up                          Net Long Futures and Options: 47615
Overnight Trade: Z +2 1/2         Change: +25000
Opening Calls: 1-3 Higher


Yesterday the corn posted a mid range close after trading nearly limit higher. Overnight the corn was higher again, but did not challenge yesterday’s high. Freeze concerns, the weak Dollar, and strength in the outside markets were all supporting factors yesterday and may be again today. The December corn moved through the resistance at $3.67 yesterday making $3.76 and $3.88 the next upside objectives.

Wheat                                       Estimated Fund Position
Trends
Short Term: Down                     Net Long Futures and Options: -57276
Long Term: Down                     Change: +3000
Overnight Trade: Chicago: Z +2 KC: Z +1 3/4
Opening Calls: 1-3 Higher


The wheat traded to the upper end of the past few week’s trading range before backing off and settling in the middle of the day’s range. The rally was impressive, but it had nothing to do with wheat fundamentals. If we see a correction in the corn, the wheat will return to the lows. If you want to be bullish, chase the corn market, but buying wheat is probably still a mistake.

Soybeans                                    Estimated Fund Position
Trends
Short Term: Down                      Net Long Futures and Options: +6600
Long Term: Down                      Change: +8000
Overnight Trade: X -3/4
Opening Calls: Mixed


The November soybeans tested trend line resistance 1 day sooner than expected, which was impressive. Traders are trying to balance freeze concerns and the weak Dollar with expectations for a bearish crop report and yesterday the immediate concerns won out. Today there will be strong resistance at the $9.15 area in the November contract and if we see a push through that level we could see technical buying again today.

Live Cattle
Trend
Short Term: Down
Long Term: Down
Seasonal: Up
Opening Calls: Mixed


Live cattle futures finished mixed on Tuesday, with the front months moderately lower and deferred contracts higher. Some light cash trade in the north at lower money along with large deliveries posted against the October contract led to the weakness in the front months. Overnight activity saw modest trade on both sides of unchanged, with recent activity moving towards the highs of the session. Continued supportive activity in the equity markets could spark some short covering in the cattle. Weakness in the US Dollar should benefit a pickup in exports.

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


Feeder cattle futures closed as much as .55 lower on Tuesday, with pressure stemming from half of a limit gains in the corn market and continued weakness in the cash market. The cash index is grinding lower, but the biggest surprise is the strength in the corn futures over the past couple of weeks. Overnight activity saw gains of .20-.25 in the front two feeder contracts as of 7:00 am. Corn prices remained firm, posting modest gains in overnight trade.