Corn                                          Estimated Fund Position
Short Term: Up
Long Term: Down                    Net Long Futures and Options: -22952
Overnight Trade: Z -6 1/2        Change: -1000
Opening Calls: 4-6 Lower

The corn moved to the lower end of the trading range overnight. Outside market influences are mostly negative this morning, which is the main reason for the pressure, and while there is little bullish news, there is also little indication at the moment that the corn is going to break out of the trading range. It is shaping up to be another sideways day.

Wheat                                      Estimated Fund Position
Short Term: Up                      Net Long Futures and Options: -59182
Long Term: Down                 Change: -2000
Overnight Trade: Chicago: Z -5 1/4 KC: Z -5
Opening Calls: 4-6 Lower

The wheat is headed for a test of the August low. There is very little supportive news, so with the outside markets and the corn lower, the wheat will likely be lower as well. The best hope for the wheat today is the unwinding of spreads, which could provide some support. Otherwise, look for the market to grind lower.

Soybeans                               Estimated Fund Position
Short Term: Up                    Net Long Futures and Options: 42965
Long Term: Up                    Change: +3500
Overnight Trade: X -27
Opening Calls: 20-25 Lower

The soybeans were under pressure overnight and the November contract nearly gave up all of last week’s gains. There is fear again that China will begin to liquidate government reserves and our outside markets are hurting the soybeans as well. The November contract should find support at the $9.60 - $9.70 area this week, the with no threats in the forecast the beans will likely trend lower through the month of September.

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

Live cattle futures didn’t fare as well as the cash market last week, giving up nearly 2.00 of the premium built into the October contract. Today is last trading day for the August futures, with traders expecting smaller show lists and improving beef prices going into September. The north could be particularly tight this week, due to their cleanup of last week’s list. Equity and outside influences could offer some sellers into the market, along with technical weakness after last week’s sell off.

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

Feeder cattle futures had a rough week last week, with the active October contract losing 2.50 for the five day period. Cash index levels continue to slide, with grass cattle numbers up from the midsummer time frame. Weakness in overnight corn markets could be supportive, but we need to see the live cattle futures pick up positive momentum to sustain any recovery in the feeders.