FOR THURSDAY: (1/12) Congestive grain action likely before USDA report on Thursday. We have a bias toward a positive reaction to the report for Thursday/Friday, and corn isn’t falling as farmers aren’t selling and export demand is strong. Cycles remain volatile to lower for cattle and hogs on Thursday. Wheat looks like it issued a technical sale and weather is wetter and that may do it in but we have to be patient.

MARCH SOYBEANS (electronic ok)

TODAY’S COMMENTS: (1/12) The lower target of 1001 came in but we didn’t put in an exit for you and at this point rather than to sit through the report, we exited overnight at breakeven. Might be willing to be long. If we get a bullish reaction on Thursday/Friday, the projection is to 1032. Rain thins out in Argentina this week, which should allow the last of the soybean planting to advance. More showers arrive next week. Argentina on Wednesday forecast a soybean crop of 56 million metric tons, which would be down nearly 5% from the previous harvest. A reduction had been expected as new government policies encouraged farmers to plant other crops.
OVERALL: With projected ending stocks on Aug. 31, 2018 projected around 400 million bushels, new crop could still have some upside, unless acreage estimates grow, or the money folks decide to pack up and go.
CYCLES OVERVIEW: Higher Jan. 12-14; lower into Jan 17.

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