Corn                                           Estimated Fund Position
Short Term: Up
Long Term: Down                     Net Long Futures and Options: -20952
Overnight Trade: Z -3 1/2        Change: +2000
Opening Calls: 3-5 Lower

The corn is still stuck in a sideways pattern. The overnight weakness brought the December corn back to the middle of the trading range and I would expect to see choppy, two sided trade from here. The crop condition rating dropped by 1 point to 69% Good to Excellent, but the spread between this year and last year is still widening. This year corn is now rated 8 points better than last year. Crop development is still far behind normal. Only 26% of the Illinois corn is dented compared with 73% on average. Good condition numbers are being offset by slow development, thus we have a sideways market.

Wheat                                         Estimated Fund Position
Short Term: Up                           Net Long Futures and Options: -57182
Long Term: Down                      Change: +2000
Overnight Trade: Chicago: Z -2 3/4 KC: Z -3 1/4
Opening Calls: 2-4 Lower

The wheat made a strong comeback following yesterday’s early losses, however the market was weaker again overnight and there is still very little reason for the wheat to move higher. Technical indicators are not oversold and the December KW made a new low for the move yesterday, which is a good indication of more weakness ahead. It still looks like one needs to sell any strength.

Soybeans                                      Estimated Fund Position
Short Term: Up                            Net Long Futures and Options: 38965
Long Term: Up                            Change: -4000
Overnight Trade: X -2 1/2
Opening Calls: 1-3 Lower

The soybeans were sharply lower yesterday and didn’t really see the good bounce back like the corn and wheat. The November soybeans found support at the 50-day moving average and that area will probably be tested again today. The $9.60 - $9.70 area needs to hold this week to avoid a move down to the $8.70 area as we move into harvest. Slow development is supportive, but it is hard to rally going into harvest.

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

Live cattle futures closed modestly lower on Monday, recovering late from a bigger sell off earlier in the session. Cutout values were higher for the day and slaughter started the week on an aggressive pace. Our show list was down 5% from a week ago and 24% from a year ago. National lists also showed contracting numbers in the main feeding regions. Overnight trade was slow, with slight gains being posted across the board as we write. Improving fundamentals vs. declining technicals is how Tuesday appears to lay out.

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

Feeder cattle futures continued to struggle on Monday, with .20-.90 losses posted on the board. Cash index levels dropped to 98.65 and appear to have more downside to come based off of Oklahoma City’s lower calls on Monday. Overnight corn prices were down 3-4 cents, giving electronic feeders a bit of a boost. If corn trades softer today, we could see some turnaround Tuesday action in the feeder pit.