Corn                                            Estimated Fund Position
Short Term: Up
Long Term: Up                             Net Long Futures and Options: 22615
Overnight Trade: Z +9 1/2            Change: +9000
Opening Calls: 8-10 Higher

The corn market put on quite a performance yesterday. The December corn managed to take out both last week’s low and last week’s high. The close was only mid range, but overnight strength took the market through yesterday’s high. The market doesn’t want to go down despite private analysts calling for higher yield estimates from USDA. There is a killing freeze forecast for the northern corn belt this weekend, which is going to cause some damage and that is a major supporting factor today.

Wheat                                           Estimated Fund Position
Short Term: Down                        Net Long Futures and Options: -60276
Long Term: Down                        Change: +2000
Overnight Trade: Chicago: Z +9 1/2 KC: Z +8 1/4
Opening Calls: 8-10 Higher

Wheat failed to hold yesterday’s impressive early gains, but did follow the other markets higher overnight. As has been the case for months, if the corn and beans are higher the wheat has a chance too, but there is still nothing out there that will make the wheat move higher independently. We still view strength in the wheat as a selling opportunity.

Soybeans                                        Estimated Fund Position
Short Term: Down                          Net Long Futures and Options: -1400
Long Term: Down                         Change: +3000
Overnight Trade: X +13 1/4
Opening Calls: 10-15 Higher

Yesterday’s action in the soybeans was not impressive at all, but there was good buying overnight. There is less concern about freeze damage for the soybeans than for the corn and there must also be a greater belief that USDA will increase the yield estimate in Friday’s report. The soybean charts still look bearish and it will take a move above trend line resistance at $9.15 to encourage technical buying.

Live Cattle
Short Term: Down
Long Term: Down
Seasonal: Up
Opening Calls: 20-40 Lower

Live cattle futures got off to a shaky start on Monday and appear to have more weakness ahead, based off of the large deliveries against the October contract and struggling beef prices. There were 110 deliveries posted against the October contract on Monday afternoon, with all of the action stemming from the north, where producers have struggled to keep current. Overnight activity has been weaker once again, with losses of .30-.40 in the front months. On the positive side, show lists for this week appear to be below week ago levels and some packers may be short on inventory heading into weeks end.

Feeder Cattle
Short Term: Down
Long Term: Down
Seasonal: Down
Opening Call: 20-40 Lower

Feeder cattle contracts posted their lowest trade since last December and are becoming very oversold. Strength in the corn futures along with weakness in the live cattle trade were more than enough to pressure the market for most of the day. The cash index actually rose slightly for the day, but sales in Oklahoma City were called anywhere from $1-$5 lower depending upon the size and quality of the offering. Overnight news doesn’t look very supportive, with corn rising to its highest level in two months.