Corn                                              Estimated Fund Position
Short Term: Up
Long Term: Up                            Net Long Futures and Options: 81882
Overnight Trade: Z +3 1/2          Change: -3000
Opening Calls: 2-4 Higher

The corn market started the overnight slowly, but as the Dollar weakened the corn gained strength. The December corn contract has very good support at the $3.68 - $3.69 area, so traders will be watching that level closely, but on the open traders will be looking to see if the December corn can move up through the $3.78 resistance. A move through that level would be a good indication that the correction in the corn is over.

Wheat                                           Estimated Fund Position
Short Term: Up                             Net Long Futures and Options: -48603
Long Term: Up                             Change: -2000
Overnight Trade: Chicago: Z +7 3/4 KC: Z +8 1/4
Opening Calls: 7-10 Higher

The wheat jumped higher overnight as the Dollar Index weakened. The overbought condition of the market is being relieved, but we don’t have confirmation that the correction is over. A close at $5.23 or better today would do that. Other than the outside markets, news is still sparse.

Soybeans                                       Estimated Fund Position
Short Term: Up                              Net Long Futures and Options: 32384
Long Term: Up                              Change: -3000
Overnight Trade: X +10 1/4
Opening Calls: 10-12 Higher

The soybeans posted solid gains overnight, but like the other markets, it wasn’t enough to take out Friday’s high and it wasn’t enough to confirm that the correction is over. Demand is still excellent, but there is still concern about harvest pressure. However if forecasts stay wet the harvest delay concern could be very supportive. Watch the Dollar Index and watch for a move through $9.97 in the November contract.

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

Live cattle futures had a solid week, gaining .85 basis the December contract and should see additional gains after southern cash traded @ $84.00 on Friday. Cattle on feed report numbers came in pretty much as expected, which should allow the markets to concentrate on show lists and beef cutout through the first half of the week. Cutouts were higher for the week, but only marginally so. More gains are needed to sustain additional strength in the cash trade. Equity markets look to start the week on a positive note, providing additional support for the cattle.

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

Feeder cattle futures gained .72 for the week in the active November contract. Not a bad week considering that corn picked up an additional .09 over the five days. Overnight corn values gained 3-4 cents after a rally attempt in the US Dollar failed. Short term technical signals are turning up, and cash markets showed improvement throughout the week. Look for two sided trade, with grain strength offsetting potential support from the live cattle pit.