Corn – Signs that fund the selling may have slowed yesterday, may encourage light buying
↔ There were signs yesterday that funds selling may have slowed for the 1st time since mid-December
↑ With ethanol running strong in last week’s exports also strong there is a chance that seeing slowed
fund selling may encourage light speculative buying from other traders
↑↔ Ethanol is strong enough to suggest light support, exports are still unsure
↔ With funds estimated short around 85% of record for corn we can assume that funds selling may
slow soon although there were still signs of light fund selling yesterday
Beans – SA maps drier days 1 – 5, small rains added days 6 – 10, not as clear funds slowed in beans
↑ Morning maps were slightly drier this morning on the 1 - 5 day outlook, a bit more rain on the 6 – 10
↓ Unlike corn, open interest was up 15K yesterday still suggesting moderate fund is selling
↔ If beans did find support there’s little on the chart to offer resistance, the 1st resistance that can be
seen as a downtrend line at 1278 followed by a chart gap at 1296 ¾
↔ If another downwards move is seen, active support would be expected again at 1300
↔ Last week’s exports recovered to a solid 783K, for lasting support more is needed
Wheat – Like corn, open interest in yesterday’s volume suggest fund selling may have slowed
↔ Open interest was +1K which is a small enough number to suggest that fund selling may have slowed
↔ Like corn/beans, last week’s exports were positive but more than just one week is needed to suggest
support, for wheat exports over 400K will be needed on a regular basis
↔ For the past week overseas wheat has moved sideways, giving first signs it may be leveling off
Cattle – BB continuing higher again, funds remain quiet, showlist +11K, futures factoring steady cash
↔ Yesterday’s PM BB was choice +3.17 select +3.53 packer BE at 185.82, packer cushion $12.58
↑ BB jumped higher again yesterday and may continue as the #1 guiding influence on futures/cash
↔ Funds have remained mostly quiet for 5 weeks in cattle, we can keep watch for any signs that they
return as either buyers or sellers but keep in mind they may remain on the sidelines as well
↓ Showlist was +11K, slightly bearish but could be overshadowed by packer profits over $12
↑ Yesterday’s BB move higher pushed BB to new highs on the year and levels not seen since October
↔ As of yesterday’s close, futures are factoring in cash this week steady with the previous week