Open interest not down yesterday, funds took a 2nd day off from buying, demand exp strong 

 Corn – Open interest not down yesterday, funds took a 2nd day off from buying, demand exp strong 

↔ Open interest yesterday was +3K, not a major number but also not down significantly which hints that yesterday’s setback was not fund selling simply that they took a 2nd day off from buying 

↑ General underlying support is still expected as ethanol will be expected strong again tomorrow and exports will be expected strong on Thursday 

↑ Last week’s exports were strong enough to move even further ahead of USDA expectations 

↔ The 38% retracement is March is 462 ¼, again that is the level this market can pull back to and still not be seen as anything more than a technical correction, resistance expected again at/near 500 

Beans – ARG maps slightly drier, China starts New Year tomorrow, correction small so far 

↑ ARG maps back to showing only light rains in the 10 day outlook after a few more rains fell yesterday 

↔ The 5 ARG groups that are limited from exporting beans to China may remain that way for 2 months, ARG has made statements that other exports can fill that role for now resulting in almost no change 

↔ China starts the Lunar New Year tomorrow through the rest of the week, news from them may slow 

↔ As a reminder, a “small” 38% retracement on the recent move higher is 1025 in March 

Wheat – One weather group calling for winter kill damage, no major cold events in the 10 day outlook 

↑ One forecasting group called for winter kill damage of 52 mln bu if HRW and 12 mln bu of SRW wheat 

↔ We know that for now winter kill damage is tough to estimate but thoughts are out there that some damage was done so we may see a little better general support 

↔ There are no major cold events seen looking 10 days ahead, exports expected moderate 

Cattle – BB bounces just in time (again), volatile trade yesterday, futures priced almost $6 over cash 

↔ Yesterday’s PM BB was choice +2.16 select +4.26 packer BE at 204.54, packer cushion $3.44 

↑ BB bounced yesterday and though more is needed this came just in time as packer profits were at record losses again last week, this is the 2nd time that BB has done this 

↔ It is unlikely that BB recovered just by chance when packer losses his record and it is more likely that packers may be slowing slaughter to keep the price of BB from falling too far 

↔ Yesterday’s average cash trade was lower than expected and due to that futures are now priced at a level that is nearly $6 over last week’s average cash trade, the cash bar has been set high early on 

↑ At least small general optimism would be expected today due to the recent surge higher in cash