Corn                                               Estimated Fund Position
Short Term: Up
Long Term: Up                             Net Long Futures and Options: 134163
Overnight Trade: Z +1 3/4          Change: -3000
Opening Calls: 1-2 Higher

The corn market was firm overnight, bouncing back from Friday’s poor close. The fact that the market is overbought, coupled with Friday’s chart action suggests that we will see some corrective activity this week. I wouldn’t plan on a deep correction at this time because the fundamental outlook for the Dollar is still negative and the November crop report could be friendly.

Wheat                                            Estimated Fund Position
Short Term: Up                              Net Long Futures and Options: -28592
Long Term: Up                              Change: -2000
Overnight Trade: Chicago: Z +5 1/2 KC: Z +6
Opening Calls: 4-8 Higher

Wheat led the way higher again overnight. This afternoon’s planting progress numbers for the SRW area will be very interesting. If there isn’t significant progress made soon, traders will wonder if the wheat will be planted at all. Friday’s poor close suggests that we will see some corrective activity this week, but there will be very good support at the $5.40 - $5.45 area in the December KW.

Soybeans                                         Estimated Fund Position
Short Term: Up                                Net Long Futures and Options: 52097
Long Term: Up                                Change: +3000
Overnight Trade: X +3 1/4
Opening Calls: 3-5 Higher

Resistance in the November soybeans is very clear at Friday’s high of $10.28. The failure at trend line resistance probably means the soybeans are still going to be stuck in a sideways trading pattern. Harvest delays and production loss are still a concern, and demand is still excellent so there is good fundamental reason for strength, but the technical outlook, in the short run at least, isn’t as bullish.

Live Cattle
Short Term: Up
Long Term: Up
Seasonal: Up
Opening Calls: 10-20 Higher

Live cattle futures finished the week strong and should start this week with confidence and enthusiasm. The market saw cash improvement of $2-$4 last week in most areas and appears finally to be moving into the tight supply scenario that has been expected for the last 6-8 weeks. Last week’s aggressive kill could act as a damper for rising beef prices or it could be a sign of improved demand building. This week’s show lists will be interesting, with some expecting cattle to be pushed ahead, creating larger than expected numbers, while others believe the cattle just won’t be there.

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

Feeder cattle futures had a solid week, in spite of the gains posted in the corn market. Cash levels are slowly rising and live cattle price improvement is giving hope for yearling and calf producers. Look for feeder traders to once again be looking over their shoulder for direction from outside sectors. Key target areas for the feeder futures rest a good 2.00 higher at the 50 day moving averages. Live cattle are well above their 50 day average, showing that traders are not blindly buying everything in sight.