Friday’s USDA report was mostly bearish Soybeans with yield, production, and ending stocks coming in higher than expectations. What helped prop the market up after an initial dip was technical support and optimism around this week signing of the Phase-1 trade deal.Oliver Sloup breaks down the trading day in grain futures markets. The U.S-Iran situation has deescalated, top Chinese negotiator Liu He is set to visit Washington next week to sign the “Phase One” trade deal, the Fed thwarted a liquidity crisis and earnings are right around the corner. U.S. Department of Agriculture’s Export Sales Report for the week ending Jan. 2 will be published at 8:30 a.m. EST on Friday, Jan. 10, instead of Thursday, Jan. 9, due to the weather-related closure of Washington, D.C.-area federal offices.Thankfully for the cattle market, it doesn’t trade overnight, and participants have the ability to digest information like this as opposed to reacting on emotion. Iran launched more than a dozen ballistic missiles at two U.S-Iraqi airbases in retaliation for the killing of Soleimani. Fear and uncertainty immediately rattled through markets and the S&P lost 1.7% down to a low of 3181, tagging a critical level of support. Livestock markets retreated on Friday as a risk-off atmosphere evolved, following an increase in tensions between the US and Iran. Market participants had the weekend to digest the information and the market recovered those losses today, taking us right back to the December 27th highs U.S benchmarks shook off Middle East tensions and surged higher on the opening bell yesterday. The S&P turned positive by noon and extended gains into the close.Fundamentals: Soybeans took a tumble on Friday as US/Iranian tensions rose, prompting some profit-taking on concerns it could throw a wrench in trade negotiations with China. U.S benchmarks are set to open lower due to mounting uncertainties in the Middle East. Price action digested the killing of Iranian General Soleimani Friday and quickly recovered from session lows despite Iran’s promise to retaliate.