Corn                                       Estimated Fund Position
Trends
Short Term: Up
Long Term: Up                        Net Long Futures and Options: -8801
Overnight Trade: Z -3/4           Change: +8000
Opening Calls: 1-2 Lower


The December corn made another close above the 50-day MA yesterday and many technical indicators are giving buy signals. Failure to fall to new lows following the record yield estimate in the September crop report is going to be viewed as bullish by many traders. The $3.41 area will be the next critical resistance in the December corn. A close above that will make a move to $3.70 a real possibility.

Wheat                                      Estimated Fund Position
Trends
Short Term: Up                        Net Long Futures and Options: -64939
Long Term: Down                    Change: +4000
Overnight Trade: Chicago: Z -1 KC: Z +1/4
Opening Calls: 1-2 Lower


Wheat was very firm yesterday, but still hasn’t moved through last week’s high. The wheat market was supported by the strength in the corn and by potential business from Morocco. I am going to be skeptical about the wheat market until better export business materializes, but we must respect the facts that the wheat has failed to fall to lower lows when it should have and technical indicators are beginning to give buy signals.

Soybeans                                Estimated Fund Position
Trends
Short Term: Down                  Net Long Futures and Options: 8899
Long Term: Down                   Change: -1000
Overnight Trade: X -3
Opening Calls: 3-5 Lower


Soybeans were the weak link yesterday despite the strong demand numbers. The beans did, however, reject the early weakness once again and close in the upper end of the trading range. The failure to push to new lows seems to be a recurring theme in the grain markets. Plan on two sided trade again today and go with a break out from this week’s trading range.

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


Live cattle futures closed lower on Thursday, as cash trade was once again disappointingly steady from a week ago levels. Futures remain above last week’s closing levels, by as much as .50 in the lead October contract. Last week’s closing levels could be tested today, as bullish traders struggle to hold on to their enthusiasm. Overnight trade was mixed, with front month steady to better, while deferred contracts traded as much as .25 lower. Cutout values were .55-.82 lower, but failed to create improved box movement in the daily report.

Feeder Cattle
Trends
Short Term: Down
Long Term: Down
Seasonal: Up
Opening Call: Steady – 30 Lower


Feeder cattle gave back all of Wednesday’s gains on Thursday, as the weight of lower live cattle futures and higher corn values were more than the market could handle. Futures are now mostly lower for the week and appear to be leading the cash market lower as well. Sales out of the Pratt Ks. auction on Thursday were as much as 5.00-7.00 lower in the lighter weights and 1.00-4.00 lower in 700 lb and higher weight groups. Last weeks’ low of 96.30 basis the October feeders is now the key technical support level.