Corn                                              Estimated Fund Position
Trends
Short Term: Up
Long Term: Up                             Net Long Futures and Options: 13132
Overnight Trade: Z +3 1/2            Change: +5000
Opening Calls: 2-4 Higher


The December corn traded through trend line resistance and through last week’s high overnight. The next major resistance will come at the $3.47 ¾ area, but bullish traders will be talking about the possibility of a move up to $3.70. Crop development is still behind normal, but the weather is still not threatening, so it still looks like we will have a huge crop. Technical indicators are giving buy signals, but one should be cautious chasing this market higher.

Wheat                                           Estimated Fund Position
Trends
Short Term: Up                             Net Long Futures and Options: -60461
Long Term: Down                         Change: +2000
Overnight Trade: Chicago: Z +3 3/4 KC: Z +3 1/2
Opening Calls: 3-5 Higher


The wheat is working its way back to the upper end of the trading range. Wheat specific news is hard to come by, so the wheat is range bound and most of its movement comes from spread activity. For the moment I looks a moves over $4.80 in the December KW as a selling opportunity and moves below $4.70 as a chance to buy.

Soybeans                                        Estimated Fund Position
Trends
Short Term: Down                          Net Long Futures and Options: -2846
Long Term: Down                          Change: -2000
Overnight Trade: X +3/4
Opening Calls: 1-2 Higher


Soybean demand is still excellent, but harvest activity is expanding and forecasts are not threatening, so in the short run at least, supplies will be adequate. The November soybeans are range bound, but are due for a return to the lower end of the trading range near the $9.00 area.

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


Live cattle futures closed .05-.42 higher on Monday, with traders still looking for some reduced fourth quarter inventory to lead the way higher. Cutout values were modestly higher on even more modest movement. Show lists appear smaller overall, with Kansas falling the most. Overnight activity traded both sides of unchanged, with most recent activity pushing the market a few cents higher. Technical support in the December contract rests near the 9-day moving average and Monday’s low of 85.20.

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


Feeder cattle futures traded from .12-.67 lower on Monday, pressured by the rising corn prices and declining cash feeder market. Cash index levels fell sharply, to 95.96, losing .91 for the day. Open interest fell 236 contracts in the feeder futures, indicating that some bulls are giving in to the declining trend. Overnight activity saw some additional strength in the corn market and pressure on the feeders. Unless fat cattle prices can garner some new upward energy, feeders will struggle to gain any positive leverage.