HIGHLIGHTS
· Market Trend: Corn, Up 2-3; Soybeans, Up 2-3; Wheat, down ½ to 1
· HSBC’s preliminary PMI for China rose to a 4-month high of 50.1 (49.7 LM), suggesting marginal improvement in manufacturing activity. Fed comments remain dovish. January U.S consumer prices and weekly unemployment #’s out this morning. Asian markets higher: Nikkei, +1.08%; Shanghai, +2.17%; Hang Seng, +.50%. Europe shows gains at mid-day: FTSE, +.07%; DAX +.28% and CAC 40, +.36%. U.S. indices look favorable: DOW futures, +25; S&P, +4; NAS, +9.7. Outside markets: Energy futures are mostly weaker; gold is up $15+ and the $ Index is steady at 94.235
· T-storm Weather: A series of cool fronts trigger occasional thunderstorms in Center-West and Southeast Brazil from today forward. Rain occasionally slows planting and harvesting, which will become a potential issue later in March and April – depending on whether the rainy season lasts to aid corn, or ends early to stress corn. To the south, the same cool fronts also trigger rain in South Brazil and Paraguay, but a lack of humidity suppresses coverage and amounts. Conversely, several waves of energy trigger thunderstorms through 10 days in central and northern Argentina, focusing on wettest areas and potentially induce flooding
· Mar Corn Up $.0250 at $3.7850; May Up $.0250 at $3.8625. The funds sold 3 K at mid-week
· Mar SB Up $.0275 at $10.1050; May Up $.03 at $10.1375. Fund activity: sold 5 K SB; 6 K SBM and bought 3 K SBO
· Mar Wheat Down $.01 at $4.9675; May Down $.0075 at $4.9650. The funds sold 7 K Wednesday
CORN/SORGHUM ;           ;
·   Export Sales to be released at 7:30 AM CST. Trade expects 35 to 43 mbu corn
· Ethanol grind: 947,000 barrels per day for week end Feb. 20--down 17 thou vs. last week but 4.6% higher vs. last year
· T-storm Weather: Rain next 10 days in Argentina possibly leads to flooding since a few locations had around 12.00" to 15.00" thus far in Feb. (vs. averages of around 3.00”). Regardless of rain, temperatures remain cool for filling corn
· December 2015 corn futures closed at $4.09 on Wednesday—one year ago, December 2014 corn settled $4.67 ¾
SOYBEANS/WHEAT
· Export Sales to be released at 7:30 AM CST. Trade expects soybeans, 17 to 24 mbu; soymeal, 100-300; soyoil, 0-20
· T-storm Weather: Periodic thunderstorms affect Center-West, Northeast and Southeast Brazil for the next 7-10 days. Above-average amounts of 2.50”-4.50” are probable, keeping soybean harvesting slower than would otherwise occur
· November 2015 soybean futures closed $9.87 ¼ on Wednesday—one year ago, November 2014 settled at $11.67 ½
· Export Sales to be released at 7:30 AM CST. Trade expects 7-15 mbu for all wheat
· T-storm Weather: Most U.S. HRW and SRW wheat benefits from heavy precipitation through 10-14 days
ENERGY
· Futures are again mostly lower: QCLJ15, -$0.61 at $50.36; QRBJ, +0.0051; QNGJ, -$.018; and QHOJ, -$.0057
· Cash ethanol markets continued to deteriorate on Wednesday: Chicago down 1 ¾; New York eased 1; Gulf slipped 2 ½; Dallas and Tampa declined 1 ½; and LA was 2 ¾ lower at $1.49 ¼ per gallon
· RINs were firmer: 2013’s up ¼ to 69-72; 2014’s gained ½ to 72 ½-73 ½; and 2015’s added ¼ to 71 ½-73
· The Mar RBOB/Mar Ethanol spread widened further, out 11+ cents to $.3547/gallon; widest since late October, 2014
LIVESTOCK/POULTRY    
· On Wednesday, choice boxed beef values gained $2.25 and are $6.71 higher compared to last week
· Cash cattle trading has been very limited so far this week with asking prices near $162 in the South
· The USDA mandatory pork carcass cutout value declined $1.60 on Wednesday and is $3.31 lower vs. a week ago
· CME Lean Hog Index increased $1.18 to $62.06. April futures up $0.75 to $69.325 and is $7.265 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather