Corn                                               Estimated Fund Position
Trends
Short Term: Up
Long Term: Up                               Net Long Futures and Options: 106882
Overnight Trade: Z -1 1/2               Change: +20000
Opening Calls: 1-2 Lower


The December corn nearly reached the $4.04 - $4.08 objective yesterday, before profit taking took back some of the gains. The market was slightly lower overnight and some consolidation trade should be expected. Export sales were very poor at 234,900 MT. The poor sales were a result of cancellations by a number of S. American countries, which is probably due to Brazil subsidizing exports. Sales will need to improve to avoid another cut in the export estimate.

Wheat                                             Estimated Fund Position
Trends
Short Term: Up                               Net Long Futures and Options: -40603
Long Term: Up                               Change: +5000
Overnight Trade: Chicago: Z -3 1/2 KC: Z -4
Opening Calls: 2-4 Lower


The December KW reached the highest level since early August yesterday. Planting delay concerns in the SRW area, outside market influences, and the strength in the corn, were all supportive. Export sales were good today at 627,600 MT, which is also encouraging. A few more weeks of sales like that and USDA might consider increasing the export estimate, which would definitely help the balance sheet. Look for consolidation today.

Soybeans                                         Estimated Fund Position
Trends
Short Term: Up                                Net Long Futures and Options: 40384
Long Term: Up                                Change: +8000
Overnight Trade: X -7 1/2
Opening Calls: 4-6 Lower

Export sales were excellent again at 987,300 MT. There seems to be no end to the Chinese appetite for soybeans. The market tried to break out of the recent trading range, but is still stuck in a sideways pattern. The export sales data is supportive, but there is little indication that we will break out of the range today. I look at weakness as a buying opportunity until the weather clears or the demand stops.

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


Live cattle futures gapped above key resistance levels on Wednesday and appear ready to challenge their next key resistance at the 100 day moving averages. Higher cash and cutouts have brought new buyers into the futures market. Open interest was up over 550 contracts, indicating more than hedge covering as a catalyst. Overnight activity started with some pressure spilling over from the weak close and reversal in equity markets, but has recovered most of the early selling. Outside markets will be monitored closely throughout the day.

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


Feeder cattle futures joined the live cattle in their rally effort on Wednesday, gapping higher and closing in the high end of their daily range. Overnight trade is narrowly mixed at this time, with corn prices bouncing off of overnight lows to close just 1-2 cents lower. Cash index levels have remained stagnant, awaiting confirmation of a top in the corn or new highs in deferred live cattle. Today will likely see two sided trade, with equity market movement a key to near term direction.