Corn Estimated Fund Position
Short Term:Down Net Long Futures and Options: 211305
Long Term: Down Change: -5000
Overnight Trade: Z +6 @7:30 AM
The corn market continues to consolidate. There hasn’t been much strength since the limit higher move, but the corn hasn’t given up the gains either. Export sales were poor again, but much better than last week at 326,900 MT. The thing that the bulls are still missing is better demand numbers. On the charts a move to $7.70 in the December corn would indicate a new leg higher is starting. I am still sticking with the $7.85 short term objective.
Wheat Estimated Fund Position
Short Term: Down Net Long Futures and Options: 127
Long Term: Down Change: +1000
Overnight Trade: Chicago: Z +3 KC: Z +2 @7:30 AM
The wheat market is holding at the bottom of the trading range. Traders are still waiting for either strength in the corn and beans or for a surge in export sales. The exports didn’t happen again this week and sales came in at only 307,000 MT, which isn’t enough to meet the current estimate for the year. On the charts, however, it looks like the December KW should be back at $9.25 soon.
Soybeans Estimated Fund Position
Short Term: Down Net Long Futures and Options: 149581
Long Term: Down Change: +3000
Overnight Trade: X +14 @7:30 AM
Soybean export sales were a ridiculously large 1.3 MMT, proving once again that lower prices equal more demand. If the very bearish traders are right and USDA increases yield by 4 bu/ac then maybe the sales pace won’t be a big deal and we will have plenty of beans. If yields are only increased a little bit then sales like this mean we will see $20 beans at some point. Yesterday’s positive close and the follow through strength today are good indications this market is bottoming. The information contained herein is based on data obtained from recognized statistical services and other sources believed to be reliable. However, such information has not been verified by us, and we do not make any representations as to the accuracy or completeness. Past results are not necessarily indicative of future results. All statements contained herein are current opinions which are subject to change. The risk of loss in trading commodity
future contracts can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. Neither the information, nor any opinion expressed shall be construed as an offer to buy or sell any futures or options on futures contracts.
Short Term: Down
Long Term: Down
Opening Calls: 20-40 Lower
Live cattle futures closed mixed to lower on Wednesday, reversing early strength to close 70-80 off session highs. Cutouts were higher, creating more manageable margins for packers. This week’s cash trade should begin to take shape today. Overnight weakness is expected to keep bids below last week’s trade. Outside influences look positive this morning, with the Dollar weaker and equities rising. We expect cash trade to come in steady for the week.
Short Term: Down
Long Term: Up
Opening Call: 40-60Lower
Feeder cattle futures closed moderately higher in all but the October contract on Wednesday. Overnight trade has weakened significantly, due to developing strength in the corn market. Technical indicators are softer, which should provide active sellers on any rally attempt. Grain trade should be the trigger for feeder trade over the coming weeks.
Source: Schwieterman Marketing, LLC, www.upthelimit.com , 620-275-4133