FOR WEDNESDAY: (1/10) Trade waiting on USDA report at the end of the week. Still, cycles are weak a few more days before short-covering starts. Cattle also seems in trouble for a few more days into Friday but showing some short-covering life and we’ll have to move stops lower.

MARCH CHICAGO WHEAT (electronic ok)
TODAY’S COMMENTS: (1/10) Market came back as we thought and it failed to issue the breakdown signal to allow 447 to happen. Resistance at 437 for now and then up to 447-50. Market going to have to close below 424 to break the camel’s back and really has to take out 417. Egypt received no offers in its latest tender today as sellers continue to be wary of regulations as the government tries to revamp an inspection system that’s rejected cargoes over the last couple of years. Japan is bidding to fill 63% of its latest tender for 3.3 million bushels with U.S. originations, as exports are limited to regular customers buying only hand to mouth.
NEAR TERM: The 450 region is possible in January when seasonal strength usually peaks.
CYCLES OVERVIEW: Higher into January 11.

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