Corn – December remains gravitated to 400, cash selling kicks in at that level and could last for weeks
↔Funds appeared quiet again yesterday, lately they have bought setbacks but not chasing bounces
↓ Cash selling came in right where it was expected yesterday around the 400 level, with how much grain there still is on hand this type of selling might last all the way to harvest
↑ Beans are spilling over a small amount of support on a few weather concerns of hot/dry
↔Ethanol has been running moderate lately and will be expected moderate today, around 1050K
↔The over all corn slide has slowed even more in the last 2 weeks, funds are buyers on pullbacks while cash sellers are active once Dec reaches 400 resulting in an over all sideways move
Beans – Maps move rains away from the driest areas, still have not found the level for cash selling
↑ Morning maps shifted rains from drier areas of SD/NE/KS and moved them east to MN/WI/IL/MO
↔Heat is also expected days 3 – 9, it is likely this will come a bit late to effect the crop but at least some traders are still reacting to weather map changes
↔Active cash selling is expected in beans but we still don’t know where as this is the first bean bounce we have seen since falling under $10, most would expect cash selling to start just under $10
↔First chart resistance is not seen until 1017 ¾ which is a 3 month downtrend line
↑ We are seeing more 8 AM sales, if this keeps up we can expect a little more general support
Wheat – Headlines both that Russian crop estimates moved higher and they may later move lower
↓ Odd headlines yesterday with the first one being SovEcon raising Russian crop estimates
↑ Just after the above headline came out, the Russian Ag minister claimed the wheat crop size may still be trimmed due to bad weather damage
↔US traders may start watching the dollar more than overseas wheat, the dollar fell to 7 month lows
Cattle – Fast cash selling seen just like last week, packers bid $3 lower, cattle feeders sell right away
↔Yesterday’s PM BB was choice -0.47 select -0.97 packer BE at 196.08, packer cushion $9.78
↓ Packers bid $3 lower and cash cattle sellers took that bid almost immediately
↔It is possible those with cattle are concerned there may be another setback like last fall (but this is not expected, see page 2) or that the economy is about to fall, whichever the case there is a bit of panic selling right now so even though packers can pay higher, they won’t do so if they don’t have to
↓ For now let’s label this as “panic” cash selling, the problem with panic is we can’t measure or time it