Corn Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: 111000

Long Term: Down Change: Flat

Overnight Trade: H -1 @7:30 AM

The corn traded both sides of unchanged overnight as traders await tomorrow’s supply and demand report. The March contract is still up against trend line resistance and still just below the 40 and 50-day moving averages. There probably won’t be any major changes in the supply and demand numbers, but there is the possibility of an adjustment in the export estimate. The biggest help for the corn market would come from further gains in the crude oil.

Wheat Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: -23000

Long Term: Down Change: Flat

Overnight Trade: Chicago: H -3 KC: H -2 @7:30 AM

The wheat was quiet overnight and there isn’t much fresh news for the wheat. Fighting in Ukraine doesn’t carry much weight anymore, so that isn’t helping. Technical indicators are no longer oversold and the March KW is well short of the $6.00 objective. The bulls are going to need something out of tomorrow’s supply and demand report, which isn’t likely, or some fresh demand news in order to sustain this rally.

Soybeans Estimated Fund Position

Trends – March Contract

Short Term: Up Net Long Futures and Options: -25000

Long Term: Down Change: -5000

Overnight Trade: H Unch @7:30 AM

The soybeans are still in a holding pattern. The market has never been able to build upon last Tuesday’s gains, but they haven’t been completely given up either. There is a decent chance of an increase in the export estimate in tomorrow’s report, but it still won’t be able to draw stocks down enough to cause a concern about supplies. Rallies are still selling opportunities.

Live Cattle

Trend

Short Term: Up

Long Term: Down

Opening Calls: 20-40 Higher

Live cattle futures closed sharply higher on Friday, with April and June posting limit gains of 3.00 for the day. For the week April was still off 1.25 but rebounded more than 4.00 off of weekly lows. Friday's cash trade was up 2.00 in the south from the prior week, with most activity seen at $162. Today is first notice day for deliveries in the spot February contract, with no deliveries expected at such a deep discount to the cash.

Feeder Cattle

Trends

Short Term: Down

Long Term: Down

Opening Call: 20-40 Higher

Feeder cattle finished off a disappointing week in good fashion, with more than 3.00 gains posted in the front three months on Friday. For the week March feeders were still off nearly 6.00 and remain more than 10.00 discount to the current cash index. Overnight corn prices are softer, with equities lower and the Dollar higher. Some narrowing of basis levels is expected this week.