Corn – Light fund short covering may be continuing, strong exports, active resistance in the 420s
↑ Yesterday showed signs of light fund short covering again by seeing moderate support right to 10:30 then seeing that support ease the rest of the day
↑ Strong weekly exports of 1077K helped to keep support even when funds eased back on buying
↓ The high trades over the last 3 days have been 422 ½, 423 ¾ and 423 ½ which is showing that resistance is picking up once Dec corn reaches the fair value level of the 420’s
↔It is likely corn will remain stuck in a range finding bargain buyers under 410 but also active resistance in the 420’s until some larger scale news is seen or fund short covering becomes more active
Beans – Rains added to the 1 – 5 day map, heat slightly reduced again, exports strong yesterday
↓ Weather maps should continue as the #1 guiding factor for beans for at least the next 2 weeks and this morning's maps added small amounts of rain to the 1 - 5 day outlook and reduced heat slightly
↔So far recent weather maps have followed what was mentioned in the weather section of our summer conference which is that heat can be seen but lasting aggressive heat is unlikely to last long
↑ Exports were strong yesterday at 918K, two weeks in a row of solid improvement in exports, if next week is also strong we might start to see some demand related support in beans
↔Like corn, beans are also carving out a range just less exact levels, maybe 1035 - 1080
Wheat – Overseas trade higher, exports fall back to a poor level, also sideways recently
↑ Last night overseas trade was higher and for our overnight trade that is the #1 factor
↓ Exports yesterday were poor at 309K, after a few strong weeks exports have now slipped back again
↔Like corn/beans the wheat market has turned a bit more sideways and choppy but wheat may still keep a slight bearish bias as long as exports are slower than expected
Cattle – BB higher, cash bids +$1 in NE and -0.50 in KS/TX, trade narrows the cash/futures gap further
↔Yesterday’s PM BB was choice -0.22 Select +1.15 packer BE at 192.90, packer cushion $2.38
↑ Cash bids stronger than expected, NE bidding $1 higher at 197, KS/TX bidding 0.50 lower at 190
↔Futures have narrowed the gap to cash with futures now priced -$0.50 to last week’s cash trade
↔BB was higher, as always we need to see at least 3 higher reports before looking for a new trend
↑ We may see more supportive speculative trade as we know cattle is a market that maintains a 60/40 bias to being bullish which is obviously due to low cattle numbers expected going forward