The Stock Exchange News

Corn                                       Estimated Fund Position

Trends

Short Term: Down                 Net Long Futures and Options: 209070

Long Term: Down                 Change: -9000

Overnight Trade: Z +1 @7:30 AM

The range of guesses for Friday’s Quarterly Stocks estimate is 374 million bushels, which goes to show that nobody really has a clue what USDA is going to come up with. Yesterday the December corn slipped to a new low for the move, but selling pressure quickly dried up after that and the market has seen strength overnight. It really looks like we will have yet another sideways session.
Wheat                                 Estimated Fund Position

Trends

Short Term: Down              Net Long Futures and Options: 2964

Long Term: Up                   Change: -3000

Overnight Trade: Chicago: Z +1 KC: Z+2 @7:30 AM

The wheat was surprisingly weak yesterday as that market succumbed to the pressure in the corn and soybeans. I suspect we will see the wheat market make up for yesterday’s poor performance quickly since Russian wheat prices are still rising and rain still hasn’t hit the ground in the dry areas of the HRW Belt. Look for the December KW to move back above $9.25 soon.
Soybeans                            Estimated Fund Position

Trends

Short Term: Down               Net Long Futures and Options: 158413

Long Term: Down               Change: -6000

Overnight Trade: X +13 @7:30 AM

The soybeans still can’t seem to catch a break despite all the fresh Chinese buying. There must be a number of traders that are convinced that USDA will increase the production estimate in the October supply and demand report. A production increase is possible, but it seems highly likely that any extra production will be used and we won’t be building any surplus. A close above $16.26 in the November contract will start to generate some technical buy signals.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: Mixed

Live cattle futures closed modestly lower to start the week and are recovering a like amount in overnight trade. Show lists appear to be steady to slightly smaller overall, with October contracts becoming available next week. Lower cutout values and a slow kill to start the week point to a steady cash outlook, at best. Outside influences look to more of a risk on day, with a lower Dollar and higher equities.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call : 20-40 Lower

Feeder cattle futures closed modestly higher on Monday, with the gap between fats and feeders widening to their widest levels in recent weeks. Corn futures are firming this morning, recovering the losses from Monday. Any significant recovery in corn should lead to a moderate selloff in the feeders. A move toward the bottom of the recent channel would seem reasonable.

Source: Schwieterman Marketing, LLC, www.upthelimit.com , 620-275-4133