Will the One Day Rally Open Bin Doors?
Good Morning! From Allendale, Inc. with the early morning commentary for January 18, 2018.

Allendale Ag Leaders Conference Series

Allendales 30th Annual Outlook Series, January 23, 24 and 25thRegister Here .

How Will La Nina Impact Crops in 2018? By Drew Lerner Jan 23rd (no recording)

High Yields the New Normal? By Rich Nelson Jan 24th (will be recorded)

Are We in For a Bull Ride in 2018? By Ryan Ettner Jan 25th (will be recorded)

Grain Markets are quiet overnight as the market assess the significance of Wednesday's short covering rally. Closing above the 20-day moving average and above the 3.50 level now puts resistance at 3.54 .

March soybeans are caught in the 9.45 to 9.77 trading range. A close outside of that range would likely trigger stops and keep the momentum going.

Basis bids for corn at the elevators and processor around the Midwest was steady to higher on Wednesday after the 1% rally in corn futures. Processors are trying to entice farmers to move grain despite wintery weather. Soybeans, however, saw a basis dip after recent strength in futures caused a pickup in movement.

World Weather Inc. says, In Argentina, shower and thunderstorm activity is still expected to be most significant in northern production areas, such as Santiago del Estero and northern Cordoba east through Corrientes and Misiones, for at least the next seven to ten days. There will be some erratic shower and thunderstorm activity in central and southern areas in the early and middle portion of next week; however, any meaningful rainfall in these areas will be much more localized with concern of increasing crop stress. Get the full outlook next Tuesday at Allendale's Ag Leaders Conference.

Funds were estimated net buyers of 17,000 contracts of corn, 2,000 soybeans and 4,500 wheat contracts.

EIAs crude oil inventories will be released at 9:30 am CST today. Market consensus for today's weekly report is for a -3.0 million bbl decline in U.S. crude oil inventories, a +4.0 million bbl rise in gasoline inventories and a +2.0 million bbl rise in distillate inventories. EIA will also report ethanol production at that time.

Weekly export sales will be pushed back until Friday morning because of the holiday.

US Dollar rallies, euro takes a breathier as central bank of other major economies begin to move toward tighter monetary policy amid a more synchronized global recovery.

Affiliates of Pinnacle Asset Management, L.P., a leading commodities and natural resources investment firm, today announced they have entered into an agreement to acquire the U.S.-based cattle feeding assets and farms, collectively known as Five Rivers Cattle Feeding, from JBS USA, a leading global food company, for approximately $200 million (USD). (GLOBE NEWSWIRE)

Fed Cattle Exchange sold 108 head out of 304 head offered, buyers paid 119.75. The cash feedlot trade will likely take 120 to 121 to buy enough cattle this week.

February live cattle futures closed sharply higher on Wednesday due to technical buying and hopes of higher cash this week. Technical support crosses at 116.25 with resistance at 123.62.

USDA still has large production numbers plugged in for 2018. They are forecasting pork production at 5.4% over 2017. By quarter they assume +4.1%, +4.9%, +5.5%, and +5.7%. Rich Nelson, Allendales Chief Strategist believes their numbers are not wildly out of reason but are a little too high.

February lean hog futures gave back some of the rally from Tuesday. The charts are suggesting an up-trending channel with support at 70.72 and resistance at 74.25. Spreading has been a feature in the livestock complex, buying cattle/selling hogs. We will have to wait and see if the funds are doing more today.

Dressed beef values were lower with choice down .28 and select down .28. The CME Feeder Index is 145.01. Pork cutout value is up .24.