Corn                                       Estimated Fund Position
Short Term: Up
Long Term: Up                      Net Long Futures and Options: 72478
Overnight Trade: Z -1           Change: +11000
Opening Calls: 1-2 Lower

The December corn is rapidly approaching the next retracement level at the $3.88 - $3.89 area. Overnight the corn started off weaker, but finished the session at the top of the trading range. Outside market influences are very supportive this morning with weakness in the Dollar and the gold making new all time highs. It doesn’t look like this bull move is over yet.

Wheat                                     Estimated Fund Position
Short Term: Up                        Net Long Futures and Options: -52191
Long Term: Up                        Change: +5000
Overnight Trade: Chicago: Z +1 3/4 KC: Z +1/2
Opening Calls: 1-2 Higher

The December KW reached the highest level since early September yesterday. There are a growing number of short traders that are wrong the market and short covering could continue to push the market higher. Fund traders are very, very short in Chicago wheat so there is certainly potential for the short covering to continue. There still isn’t any fundamental reason to get excited about the wheat, but if the corn and soybeans keep moving higher, the wheat will as well.

Soybeans                                    Estimated Fund Position
Short Term: Up                           Net Long Futures and Options: 20332
Long Term: Up                           Change: +7000
Overnight Trade: X +7 1
Opening Calls: 5-10 Higher

The November soybeans moved through the $10.00 level overnight, which makes the $10.25 area the next upside objective. The market is very over bought, but I wouldn’t try to pick a top. Demand is excellent, harvest is slow, and the outside markets are telling traders to own anything besides Dollars.

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

Live cattle futures closed higher for the fourth consecutive day in the active December contract. December is approaching a long term down trend line, which may be formidable resistance unless cash trade improves quickly. Beef movement continues to show signs of life and cutouts were priced very modestly higher on Monday. Overnight trade was mixed, with pressure on the October, due to more heavy deliveries. Deferred contracts were mostly higher, supported by overall smaller show lists and surging commodity prices.

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

Feeder cattle futures finished modestly lower on Monday, which was impressive considering the .20 gains posted in the corn futures. Cash markets showed signs of stabilizing as well, with Oklahoma City calling both calf and yearling purchases steady on very good demand. Overnight prices were mixed, with October under pressure, while deferred contract look to start a rebound. Corn values were steady to a penny lower overnight. A weak US Dollar this morning is likely supportive for corn and live cattle, providing mixed signals for the feeders.