Corn – Spill over pressure from beans, fund short covering picks up speed, range trade to continue
↓ Beans are offering active spillover resistance to corn in overnight trade, may continue after 8:30
↑ Funds bought 25K on Fridays COT report confirming regular rounds of short covering are being seen
↓ Cash selling is still expected to be active on each bounce that is seen, last week much of this resistance came in around fair value level for December which is in the 420’s
↔Fund buying offset by cash selling may keep Dec in a 405 to 425 range for some time yet
Beans – A bit more rain added to the 1 – 5 day, there is heat but not much area of extreme heat
↓ A few more rains added to the 1 – 5 day yesterday/this morning, rains on the 6 – 10 day are light
↔There is still heat in the 10 day outlook but most temps look to be +3 to +8 compared to average, the area of +12 or more is limited and only lasts a short time
↑ Funds bought 22K confirming signs seen last week of possible short covering
↔Like corn, beans may soon find a range, seeing support from fund short covering while seeing resistance on any positive looking weather map along with also seeing cash selling
↔As of last Tuesday funds were still 90% record short corn and 88% record short beans
Wheat – Overseas lower last night, funds quiet in wheat, lower trend continues
↓ Overseas was lower last night which meant a relatively easy move lower for US overnight trade
↔Funds are short covering corn/beans but were nearly silent in wheat, still short 46% of record
↓ As long as overseas continues a grind lower and there isn’t much US news, a grind lower continues
Cattle – BB higher for a 2nd day, NE likely to be $1 higher last week, not much word from KS/TX
↔Friday’s PM BB was choice +1.31 Select +2.35 packer BE at 194.07, packer cushion $3.55
↑ BB higher for a 2nd day could bring about more optimism from traders to start the week
↔NE is likely to see an average cash trade of $1 higher but there was almost nothing reported in KS/TX last week so that portion of the report will be tough to estimate until we see it today
↔Last week’s high in October made new 9 month highs leaving the only resistance on the chart now at contract highs which are 194.675
↔Packers paying higher cash with gross profits around $3 most of the week was the lowest level we have seen them pay higher cash all year, cattle bought last week were likely done so at a moderate loss leaving the new question: How much are packers willing to lose this year?