Corn                                                Estimated Fund Position
Trends
Short Term: Up
Long Term: Up Net Long                Futures and Options: 86882
Overnight Trade: Z -2                      Change: -2000
Opening Calls: 1-2 Lower


The corn market was quiet overnight and traded both sides of unchanged in low volume. Technical traders will be disappointed by yesterday’s lower close and the outside markets aren’t providing any support, so we may see selling pressure today. Forecasts are wet for the Corn Belt, which means more harvest delays, but corrective activity in the Dollar and stock market will have more impact on the market today than the forecasts.

Wheat                                               Estimated Fund Position
Trends
Short Term: Up                                 Net Long Futures and Options: -45603
Long Term: Up                                 Change: -1000
Overnight Trade: Chicago: Z -2 1/2 KC: Z -1 3/4
Opening Calls: 1-2 Lower


The overbought condition of the wheat market has been relieved and the December KW is still holding above trend line support, but if we see weakness in the corn today, it will be very difficult for the wheat market to rally. SRW planting delays are supportive, but at the moment it is more important to watch which way the Dollar and the corn markets go.

Soybeans                                          Estimated Fund Position
Trends
Short Term: Up                                 Net Long Futures and Options: 32384
Long Term: Up                                 Change: -4000
Overnight Trade: X -4 3/4
Opening Calls: 4-6 Lower


The soybeans are still stuck in a sideways pattern. Demand is supportive, but there is still a general feeling that there will be a huge growth in new crop ending stocks. The November soybeans will likely test the $9.70 area today and it will probably hold. There is little reason to put heavy selling pressure on the soybeans with wet weather coming into the Corn Belt.

Live Cattle
Trend
Short Term: Up
Long Term: Down
Seasonal: Up
Opening Calls: 25-50 Higher


Live cattle futures started the day under the pressure of heavy deliveries against the October contract, but ended with October trading higher on the day, due to aggressive early week cash trade in the north and south. Packers were fairly active in their attempt to by cattle at $84.50 in the south and as high as $130 and $84 in the north. The gains in the north indicate that the glut of heavy weight cattle may be coming to an end. Overnight futures prices rallied as much as 1.00 in the Oct and .90 basis the deferred months. Beef prices were sharply higher for the day and have gained nearly 5.00 in the past two weeks.

Feeder Cattle
Trends
Short Term: Up
Long Term: Down
Seasonal: Up
Opening Call: 25-50 Higher

Feeder cattle futures have ignored the climbing corn market for the past few days, taking their lead from the live cattle and outside markets. Overnight feeders traded moderately higher, whether the corn was trading higher or lower. Overnight, November feeders moved to their highest level since the 1st of the month. Cash index levels have remained stagnant, but the improvement in fed cattle trade this week, along with positive technical strength on the board, should produce new buying interest.