Corn                                           Estimated Fund Position
Short Term: Down
Long Term: Down                     Net Long Futures and Options: -45106
Overnight Trade: Z -2 3/4         Change: +3000
Opening Calls: 1-3 Lower

There are two ways to look at yesterday’s trade. Either the corn got very little benefit from the sharply lower Dollar and higher crude oil, or the Dollar/crude was very helpful and it was the only thing that kept the corn from plummeting yesterday. Either way it doesn’t look good for the corn. The market was weaker overnight, probably in response to the steady crop condition ratings. Progress numbers are still well behind normal, but the forecasts are not threatening. We are still looking for $2.80 - $2.90.

Wheat                                         Estimated Fund Position
Short Term: Down                      Net Long Futures and Options: -78927
Long Term: Down                      Change: -3000
Overnight Trade: Chicago: Z -5 3/4 KC: Z -6
Opening Calls: 5-7 Lower

The wheat is in free fall mode, which isn’t too surprising, other than the fact that the Dollar is very weak. Until the lower prices attract demand, we have to expect more of the same. It is always bad when you have to refer to a weekly or monthly chart to look for technical objectives for a market. Unfortunately that is what we must do now. At this time the $4.30 - $4.40 area looks like the next major downside target for the December KW.

Soybeans                                      Estimated Fund Position
Short Term: Down                        Net Long Futures and Options: 20186
Long Term: Down                        Change: +3000
Overnight Trade: X -8 1/2
Opening Calls: 7-10 Lower

The soybeans gave up a big part of yesterday’s gains in overnight trade. It won’t be surprising to see the soybeans get back those losses today with the further weakness in the US Dollar and the oversold condition of the market. However, upside potential is limited at the moment and strength should be viewed as a selling opportunity. A move over $9.50 in the November contract would be a great place to sell.

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

Live cattle futures were led higher on Tuesday by active bull spreading, even in face of the week long Goldman role. Cutout values started the week on a higher note and show lists appear manageable in spite of last week’s carry over. Asking prices for this week’s lists remain firm at $87+ in the south and $135+ in the north. Overnight activity saw solid follow through buying, with futures gaining .20-.40 in early morning activity.

Feeder Cattle
Short Term: Down
Long Term: Down
Seasonal: Down
Opening Call: 20-30 Higher

Feeder cattle futures struggled for much of the day on Tuesday to keep up with gains in the live cattle, but managed to rally to daily highs into the close. Follow through buying is being seen in the electronic overnight trade, with futures trading near their highest levels in the past two weeks. The cash index rose .35 to 98.59 on Tuesday and appears to be gaining upward momentum as corn prices continue to fall.