Corn                                         Estimated Fund Position
Trends
Short Term: Down
Long Term: Down                     Net Long Futures and Options: -36952
Overnight Trade: Z -2 1/4         Change: -4000
Opening Calls: 1-2 Lower


The best thing the bulls have going for them today is that the December corn made a double bottom with the August low at $3.11 ½. The outside markets are somewhat supportive this morning, but other than that the corn still looks weak. At worst the corn will start in on another leg down today and the December contract will head to the $2.80 - $2.90 area. At best the market will continue to trade sideways.

Wheat                                     Estimated Fund Position
Trends
Short Term: Down                   Net Long Futures and Options: -64182
Long Term: Down                   Change: -3000
Overnight Trade: Chicago: Z -3/4 KC: Z +1/4
Opening Calls: Mixed


The December KW made a new low for the move yesterday and although there wasn’t much follow through weakness overnight, one should look for new lows again today or early next week. If export sales aren’t going to be any better than they were in yesterday’s report, there is really nothing to get excited about in the wheat market.

Soybeans                                 Estimated Fund Position
Trends
Short Term: Down                   Net Long Futures and Options: 28465
Long Term: Down                   Change: -3500
Overnight Trade: X Unch
Opening Calls: Mixed


Harvest in the south is replenishing supplies, which in turn is killing the basis and the September futures. Demand is still strong, so once harvest is over we could see another major bull move in the soybeans, but for now we have to respect the harvest pressure. As long as the weather is not threatening there will continue to be ideas that crop size is increasing, which is another big reason it will be hard to rally the beans as we go into fall.