Corn                                             Estimated Fund Position
Short Term: Down
Long Term: Down                       Net Long Futures and Options: -48106
Overnight Trade: Z +1/4            Change: -11000
Opening Calls: 1-2 Higher

The corn was very active overnight, but the strength in the stock futures and weakness in the Dollar Index didn’t help the market very much. Fear of a very large yield estimate in Friday’s supply and demand report is still enough to offset the benefits from the outside markets. The December corn should find support at the $3.00 area, but eventually we will see it move to the $2.80 - $2.90 area.

Wheat                                          Estimated Fund Position
Short Term: Down                      Net Long Futures and Options: -75927
Long Term: Down                      Change: -3000
Overnight Trade: Chicago: Z + 1/4 KC: Z +1/4
Opening Calls: Steady to 1 Higher

Wheat fell to a new low for the move Friday and again overnight. There is still very little positive news in the wheat market. The weak Dollar may provide some support for the wheat at times today, but don’t count on the strength lasting. Until we see the export market improve the markets job will be to discourage planting and attract demand.

Soybeans                                      Estimated Fund Position
Short Term: Down                        Net Long Futures and Options: 17186
Long Term: Down                        Change: -4000
Overnight Trade: X +13 1/4
Opening Calls: 10-15 Higher

The soybeans had some good strength overnight. The combination of outside market influences, strong demand, and the oversold condition of the market are providing reasons to buy. A move up to the $9.65 area in the November contract is possible, but we are looking at strength as a selling opportunity. It is hard to rally the bean market as we move into harvest and expectations are for a negative report on Friday.

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

Live cattle futures appear to be starting the week on a positive note, with electronic trade currently .30 higher basis the October contract. Southern cash trade of steady money from the week before was encouraging, considering the softer trade on Thursday out of the north. Beef prices were softer for the week, but packers may be short bought and buying for a full key week. Look for show lists to be near steady from a week ago, with southern carry over somewhat larger. Futures had a solid week, despite the negative rhetoric, closing basically steady for the week.

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

Feeder cattle futures closed the week with gains of .50 basis the October contract, receiving support from declining corn prices. Corn prices struggled to trade any better than steady in overnight trade, in spite of new lows for the move posted in the US Dollar futures. Cash index levels improved on Friday, with the seven day average jumping .51 to 98.95. The inability of the corn market to rally into the weak Dollar is expected to support both the cash and feeder cattle futures markets to start the week.