Corn                                                    Estimated Fund Position
Short Term: Down
Long Term: Up                                   Net Long Futures and Options: 111163
Overnight Trade: Z + 2 1/2                Change: -2000
Opening Calls: 1-2 Higher

The Dollar was weaker and the stock market was stronger overnight, which allowed the corn to bounce. If the Dollar and Stock market have finished their correction then the corn probably has too. The charts still suggest a move down to the $3.58 area is likely in the December corn, so I wouldn’t rush to chase today’s rally. Export sales were terrible at only 367,200 MT. There is a lot of talk about poor test weights and lower than expected yields, but we will have to see better sales than this.

Wheat                                                   Estimated Fund Position
Short Term: Down                                 Net Long Futures and Options: -42592
Long Term: Up                                      Change: -3000
Overnight Trade: Chicago: Z +2 3/4 KC: Z +1 1/2
Opening Calls: 1-2 Higher

Wheat export sales were poor as well at only 347,700 MT. The wheat has had decent sales for a couple of weeks, but we need to see consistently strong numbers in order to eat through our large stocks. Yesterday the December KW found support around the $5.03 level, which is where it was supposed to find support, so we should look for some consolidation at this level as traders wait to see what the Dollar does.

Soybeans                                                  Estimated Fund Position
Short Term: Down                                     Net Long Futures and Options: 41097
Long Term: Up                                         Change: -3000
Overnight Trade: X +4 3/4
Opening Calls: 3-5 Higher

Soybean export sales were excellent once again at 691,000 MT. There other positive news on the export front is that we aren’t just selling the beans they are rapidly being shipped out as well. Shipments were 1.4 MMT, which is outstanding because the sales won’t be cancelled if they are shipped out. The $9.70 area is an important support level in the November contract and the market looks like it will consolidate around that level today.

Live Cattle
Short Term: Up
Long Term: Up
Seasonal: Up
Opening Calls: 20-30 Higher

Live cattle futures shrugged off early weakness on Wednesday, spurred by strength in the cash market and fresh buying in the futures. Cash sales of as high as $88 in the south and $135 in the north cleaned up a majority of this week’s show lists. The aggressive buying by the packers indicate that the projected tight supplies are finally taking shape. Snow in the western plains and wet weather throughout the cattle feeding regions continue to take tonnage off of the market. There continue to be heavy deliveries out of Nebraska, with Worthing dumping 54 more against the October contract. The deliveries have made life better for southern hedgers that sold cattle for $88 on Wednesday and lifted their hedges with more than 2.00 positive basis.

Feeder Cattle
Short Term: Up
Long Term: Down
Seasonal: Up
Opening Call: 10-20 Higher

Feeder cattle futures recovered from early weakness to close with moderate losses on Wednesday. Overnight trade was quiet, with minimal trade on either side of unchanged. Look for prices to slowly begin improving if the live cattle can sustain strength in today’s trade. Cash index levels have remained steady this week, but should receive a boost from some low days going off of the 7 day average. Corn was modestly higher in the overnight, giving feeders some hesitation in following the stronger live market.