Corn                                                  Estimated Fund Position
Trends
Short Term: Up
Long Term: Up                               Net Long Futures and Options: 73478
Overnight Trade: Z + 1/2            Change: -6000
Opening Calls: Steady – 1 Higher


The corn market had a sharp setback yesterday, but didn’t see follow through overnight. Technical indicators are still overbought and the outside market influences are negative this morning, which suggests we could see further weakness at some point today. Export sales were better than last week, but still not good enough at only 631,800 MT. Sales will have to improve to avoid another cut in the export estimate. December corn will have support at the $3.67 - $3.70 area again today. A move below $3.67 will cause the selling to accelerate.

Wheat                                              Estimated Fund Position
Trends
Short Term: Up                               Net Long Futures and Options: -45191
Long Term: Up                               Change: -3000
Overnight Trade: Chicago: Z +2 1/2 KC: Z +3 3/4
Opening Calls: 2-3 Higher


Today’s outlook for the wheat is very similar to that of the corn. There was a correction yesterday, but no follow through overnight. Technical indicators are still overbought and the outside market influences are a concern this morning. Export sales were adequate at 480,200 MT, but sales like that aren’t going to encourage any buying today. Look for two sided trade today as the market continues to relieve the overbought condition.

Soybeans                                          Estimated Fund Position
Trends
Short Term: Up                                Net Long Futures and Options: 16332
Long Term: Up                                Change: -4000
Overnight Trade: X +1 3/4
Opening Calls: 1-2 Higher


Soybean demand is still great. Bean sales came in at 654,500 MT and soybean meal sales were at 466,100 MT. Those sales numbers could support the beans today, but I think that hopes of better harvest weather and talk of good yields will outweigh the exports today. Like the other markets, the beans are in the midst of a downward correction and a little more pressure should be expected.

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


Live cattle futures finished higher across the board on Thursday, with the only significant gains seen in the October contract. Cash trade remained on hold, which we believe favors feedlots heading into this afternoons on feed report. Beef prices were mixed, with strength in select and some weakness in choice cuts. A 3,000 head higher adjustment in the Wednesday slaughter puts us ahead of last week’s slaughter pace. We expect to see a $1- $2 improvement in cash trade by this afternoon.

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


Feeder cattle futures saw moderate gains on Thursday, with the November contract gapping higher and closing at its highest level in two weeks. The gap higher leaves an island reversal in the chart and bodes well for follow through buying. The cash index showed some improvement as well. Overnight corn prices traded both sides of unchanged and closed near steady. Weakness in the equity markets and strength in the US Dollar could be a positive for feeders.