Corn                                                 Estimated Fund Position
Trends
Short Term: Up
Long Term: Up                                  Net Long Futures and Options: 114882
Overnight Trade: Z + 7 1/2                Change: +8000
Opening Calls: 6-8 Higher


The December corn moved through the $4.08 resistance overnight, and although the corn market is very overbought, traders will begin to look for a move up to the $4.50 area. Harvest delays and production concerns are very supportive, as is the continued weakness in the US Dollar Index. This is not the time to try and pick a top.

Wheat                                                  Estimated Fund Position
Trends
Short Term: Up                                    Net Long Futures and Options: -34603
Long Term: Up                                    Change: +6000
Overnight Trade: Chicago: Z +12 KC: Z +9
Opening Calls: 10-15 Higher


The December KW is working closer to the next technical objective of $5.71. Strength in the corn and weakness in the Dollar are certainly helping the wheat market. There is also the growing concern about planting delays in the SRW area and export demand has been more than adequate lately. Lower than expected acreage and better than expected demand would provide a big boost to the wheat market by drawing down our huge stocks levels.

Soybeans                                               Estimated Fund Position
Trends
Short Term: Up                                      Net Long Futures and Options: 38384
Long Term: Up                                      Change: -2000
Overnight Trade: X +15 1/4
Opening Calls: 15-20 Higher


The soybeans finally broke out of the trading range overnight and the November contract reached trend line resistance. A close above $10.27 in the November contract would look very good on the charts and have bullish traders looking for a move up to $11.00. Like the corn and wheat the soybeans are very overbought, but the beans have the benefit of tremendous demand. Slow harvest progress will keeps supplies tight and raise production concerns.

Live Cattle
Trend
Short Term: Up
Long Term: Up
Seasonal: Up
Opening Calls: 20-40 Higher


Live cattle futures, other than the October contract closed higher on Thursday, with cash trade as high as $86 in the south and climbing beef prices leading the way. The remainder of this week’s show list is priced at $87 in the south and $135+ up north. December futures hit the 100 day moving average in the overnight trade and is holding in that range. Strength in equity markets around the world could add to the bullish enthusiasm in the cattle pit. Hide and offal values jumped .38 on Thursday, enhancing packer ability to pay up for the cattle.

Feeder Cattle
Trends
Short Term: Up
Long Term: Up
Seasonal: Up
Opening Call: 20-30 Higher


Feeder cattle continued to ignore surging corn values on Thursday, closing narrowly mixed and holding on to bullish chart patterns. The cash index rose modestly on Thursday, with the single day average pushing above 95.00 for the day. Overnight activity remains narrowly mixed, with the market undecided on whether to watch the corn or the fats for direction. Corn is up another 8 cents in the night session.