Corn Estimated Fund Position
Short Term:Up Net Long Futures and Options: 223401
Long Term:Up Change: -10000
Overnight Trade: Z -3 @7:30 AM
Corn export sales were poor, which was expected, with 178,400 MT of old crop and 23,000 MT of new crop sales. Demand is obviously suffering, but at this point we still don’t know how much demand we have to shut off. There are more and more yield estimates coming in below 130, which would require a great deal of demand destruction. Today, plan on another session of directionless trade with a wide trading range.
Wheat Estimated Fund Position
Short Term: Up Net Long Futures and Options: 18086
Long Term: Up Change: -4000
Overnight Trade: Chicago: Z-5 KC: Z -3 @7:30 AM
Wheat export sales were good at 516,200 MT. Two of the past three weeks have been solid and considering how much wheat we will need to feed, the market needs to keep exports slow. On the charts it still looks like the December KW is set up to trade sideways until next week’s supply and demand report, so plan on directionless trade today.
Soybeans Estimated Fund Position
Short Term: Up Net Long Futures and Options: 222629
Long Term:Up Change: -5000
Overnight Trade: X -5 @7:30 AM
Soybean export sales were great for the old crop at 194,000 MT, but a little slow on the new crop at only 52,400 MT. Soybean meal sales were good, however, so overall demand wasn’t too bad. On the charts the November beans filled the open chart gap at $16.12, but it doesn’t look like the market is done heading lower. $15.90 is a likely downside target for today as traders wait for next week’s report and watch the volatility in the financial markets.
Long Term: Up
Opening Calls: Mixed
Live cattle futures closed mixed on Wednesday, with August higher and deferred contracts moderately lower. Bull spreading was a feature as the market awaits the bulk of cash trade. With August trading at 119.00 on the close, feedlots appear firm in their higher asking prices. Dollar weakness and equity strength this morning should lend support to the fats. Weekly beef exports remained solid, with 15,800 mt sold.
Short Term: Up
Long Term: Down
Opening Call: Mixed
Feeder cattle futures closed higher on Wednesday, with August posting triple digit gains and climbing to a 5.00 premium to the cash index. Overnight corn prices have traded both sides of unchanged in a .15 range. Feeder bias is definitely turning more positive in spite of the corn values. Producers are starting to see firming prices in the country and more interest out of the large feedlots.