* At midday, corn is +4, soybeans are +5, Chicago wheat is +10, KC wheat is +11, Minneapolis wheat is +7, Jan feeders -2.200, Feb fat cattle +.500, Feb hogs +1.150.
* Grains are up today, rallying from oversold conditions and funds covering some of their record short positions ahead of the January crop report. The CFTC report this afternoon will help clarify their overall positions, and new positions would be unlikely ahead of the crop report.
* South American weather is calling for a few showers to the norther areas of Brazil and dry out the a little in the south, giving great conditions for crop development. There continues to be more concerns over the drought in South Africa, and could be more serious if the rains forecasted this weekend do not materialize.
* China’s Shanghai Index rose 2% overnight and helped lead into the overnight rally and continue into today.
* Feeder cattle have turned lower after trading higher this morning, should be closer to support area at current levels. Live cattle are still holding small gains as well as hogs.
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