Today's Report Could Set The Tone For The Coming Month

For today’s report it is important to remember that current price levels for corn/beans factor in a

carryout increase while the analysts’ estimates here suggest a small carryout decline. This report could

set the tone/direction for grains over the next month. Also to note there is a Quarterly Stocks report

today as well.

Cattle – BB has now recovered to a supportive level, cash trades starting steady to +$0.50

↔ Yesterday’s PM BB was choice +2.82 select +3.00 packer BE at 176.48, packer cushion $3.93

↑ BB has now recovered to a level we can call truly supportive, lifting packer profits to $4

↑ Cash trades yesterday were steady to +$0.50 which is impressive given the showlist numbers

↔ If futures are going to see more upside there are 2 resistance areas that may be tough to break at

first: 1) Around the 172 area for Feb and 2) Recent highs in Feb at 173.25

↔ April will become lead contract next week, recent highs for that contract are 175.725

↔ Let’s keep using BB as our guide, it is working again telling us to exit shorts