Corn                                             Estimated Fund Position
Trends
Short Term: Down
Long Term: Down                       Net Long Futures and Options: 515
Overnight Trade: Z -1 1/4          Change: -6000
Opening Calls: 1-3 Lower


Yesterday the December corn posted an outside day down on the chart. That is a bearish technical indicator and typically results in further weakness at some point. There was a little bit of strength overnight, probably because traders felt that yesterday’s weakness was overdone, but we are looking at any strength as a selling opportunity. The oversold condition of the market has been relieved, and we will likely see a retest of the August low.

Wheat                                            Estimated Fund Position
Trends
Short Term: Down                        Net Long Futures and Options: -57636
Long Term: Down                        Change: -500
Overnight Trade: Chicago: Z + 3/4 KC: Z +3/4
Opening Calls: 1-2 Higher


Wheat futures were very strong early in yesterday’s session, but failed to hold gains and settled just above unchanged in Kansas City. The strength was based off of short covering and unwinding of spreads, nothing fundamental, so there was little chance of the rally lasting. There was some buying overnight, but it is highly unlikely that yesterday’s high will be taken out anytime soon.

Soybeans                                        Estimated Fund Position
Trends
Short Term: Down                        Net Long Futures and Options: 42170
Long Term: Down                        Change: -3000
Overnight Trade: X Unch
Opening Calls: Mixed


The soybeans continue to be very volatile. Demand is still very good. There is concern about the weather in China and India, but we are also headed into the US harvest, which will replenish our supplies. From a long term perspective, it is best to be bullish soybeans, but until harvest is over it is going to be difficult to post consistent gains, regardless of the demand. Look for another two sided trading day today.

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


Live cattle futures closed mixed to mostly higher on Tuesday, with a very late round of selling dropping the October contract just below unchanged. Cutout values continue to climb along with open interest in the futures market. Both factors are supportive for a market in need of good news. Overnight activity saw more of the same, with the market trading modestly on either side of unchanged. Packers are bidding $82, with current asking prices in the $85-$86 range. If cash is going to take place today, bids will have to come up.

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


Feeder cattle futures continue to struggle, with small losses posted again on Tuesday. Cash markets are acting much the same, with buyers unwilling to pay up for yearlings until they see significant cash improvement coming out of the feedlots. Overnight activity is steady to slightly higher in very low volume. Weakness in Tuesday’s corn futures could provide some needed support for feeders if the fat market continues to climb.