Corn                                              Estimated Fund Position
Short Term: Up
Long Term: Down                        Net Long Futures and Options: -485
Overnight Trade: Z +2                Change: -1000
Opening Calls: 1-3 Higher

The corn was slightly higher overnight and stayed inside yesterday’s range. Export sales were adequate at 265,600 MT of old crop and 707,600 MT of new crop sales. Importers are probably waiting to see if prices get lower going into harvest before making large buys. Look for two sided trade today. Strength is a selling opportunity unless we close above Tuesday’s high.

Wheat                                          Estimated Fund Position
Short Term: Up                           Net Long Futures and Options: -54636
Long Term: Down                      Change: +3000
Overnight Trade: Chicago: Z +1 3/4 KC: Z +1 3/4
Opening Calls: 1-3 Higher

Yesterday wheat was spurred higher by an Egyptian wheat purchase. It is amazing what a little bit of demand can do for the wheat market. Today’s export sales were a marketing year high at 652,700 MT, which was above expectations. We need to see several more weeks of numbers like this for it to really matter, but maybe things are headed the right way. However, there are many layers of resistance above the market, so one should be very cautious chasing rallies. Unless we start to see consistently good exports, strength is for selling.

Soybeans                                    Estimated Fund Position
Short Term: Up                          Net Long Futures and Options: 44170
Long Term: Up                          Change: -1000
Overnight Trade: X +7
Opening Calls: 5-10 Higher

As expected export sales were outstanding at 87,900 MT of old crop and 1.97 MMT of new crop sales. It doesn’t look like next week’s numbers are going to be as good, but the current pace is not sustainable. The soybean market has been very choppy due to the strong demand and approaching harvest and we will probably see more of the same today. Long term I like bullish strategies. Short term look for more two sided trade and consolidation.

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

Live cattle futures saw a sharp sell off on Wednesday, with fresh selling leading the decline. Cash bids improved to fully steady in the north, with those bids likely to move higher today in order to secure inventory in that sector. Cutout values rose again on limited volume. Packer margins are plenty good for higher cash prices to surface. Feedlots appear more ready to hold for the better money this week. Overnight activity was light, with modestly higher trade in the fats.

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

Feeder cattle futures were pulled lower by the sharp selloff in the live pit on Wednesday. A test of the August lows of 99.22 basis the October contract is underway. Open interest was modestly lower on the break, indicating some long liquidation leading the decline. Feeder cattle traders will have a close eye on the fats today, as well as the corn pit, where overnight trade saw a late surge to gains of 2 cents. Cash index levels have fallen below the 100.00 level for the first time in quite a while.