Highlights

• Grains sharply higher overnight on new-year buying and outside markets strength; Many grain bulls are anticipating getting some assistance from fund traders this month as large equity re-balances itself
• Chinese soybean demand still running rampant, however a slow-down in demand for US beans is expected once a massive South American crop becomes available to importers
• US$ sharply lower today with most major commodities including gold, silver and crude all sharply higher; Equities up modestly
• Corn barely missing multi-month highs overnight; Many now looking for Dec corn to test major resistance near 4.70; Beans again approaching recent highs on major rally last week and into the overnight trade
• Question is now whether or we'll fund buyers follow through with their new year grain buying; Stories towards the second half of '09 indicated that major firms such as UBS and other would extend grain length
• USDA to issue final crop production report on Tues, Jan 12

Weather

• More snow to hit the plains and into the Midwest starting tomorrow; Most of the country looking at very cold temperatures this week which should continue through the 6-10 day period, at least in the eastern US
• 6-10 day looking mostly dry for the US

Email Joe for this week's trade idea!  jvaclavik@mfglobal.com