Corn – GTE +1% at 68%, once again overnight sets back and we expect fund support after 8:30
↓ GTE at 68% will give some traders the feeling that yield could be raised on the August crop report
↓ Overnight following beans/wheat again as it did the previous night, could be a regular new pattern
↑ Support was seen after 8:30 on yesterday’s opening and is expected again today, always keep in mind that funds do not trade until 8:30 no matter what the overnight session does
↔ Weather maps still offer some influence to corn but far less than we can expect to see in beans
Beans – More rain added and heat reduced again, GTE -1% at 67%, fund buying might have been seen
↓ Again a bit more rain was added to the 10 day outlook and temperature lowered, last Monday we saw a hot/dry threatening map and each day after that it has slowly turned less threatening
↔ GTE at 67% may not give traders thoughts of raising yields in August but certainly not lowering it
↔ Some of yesterday’s bounce off lows that were down over 30 cents may have been fund short covering continuing like they did last week, always tougher to tell on a lower trading day though
↑ If Nov was to fall to 1000 we would expect much larger support there, like corn has seen near 400
Wheat – SovEcon raised their production estimate another 0.5 MMT now at 84.7 MMT
↓ Yesterday SovEcon raised their Russian production estimates again slightly
↔ There is talk of RU wheat having light test weight, that is typically not a traded issue until exporting it
↑ Yesterday showed signs of fund short covering in wheat which may be expected to continue today
Cattle – BB higher for a 3rd day now, showlist -7300, last week’s ave cash trade likely lower than exp
↔ Yesterday’s PM BB was choice +1.04 Select +4.06 packer BE at 195.68, packer cushion $5.48
↑ BB higher for a 3rd day to give the first true fundamental signs that BB is recovering
↓ Yesterday’s setback may have been technical as last week’s bounce was a bit overdone
↓ Yesterday's setback may have also been fund selling, funds are liquidating many different commodities right now and they are long cattle, too early to know for sure after just one day
↔ Funds have not been a major influence on cattle in a year and a half but they are making waves in other markets so they need to be watched in this one as well
↔ Last week’s average cash trade at -0.32 likely surprised most who were expecting +$1 or +$2