HIGHLIGHTS

·         Market Trend:  Corn, Up 2; Soybeans, Up 11-13, again led by Mar; Wheat, 2-3 Higher   

·         A strong performance by the Nikkei overnight was not enough to lift other world markets higher.  The BOJ announced new measures to improve economic growth, boosting the Japanese market 3.1%. The Hang Seng posted a more modest .23% gain while Shanghai fell back .77%.  The DAX and CAC-40 are both weaker in early activity; the FTSE is up .1%.  U.S. futures are flat to slightly lower.  Pundits note another “Lehman Brothers” didn’t happen, encouraging money flows into the U.S., Europe and Japan while skeptics note a 10% correction may be long overdue. Gold is $2.65 lower at $1,316.20; the $ Index is off .004 at 80.175 and the energy complex is higher with crude showing a near-$.90 gain

·         T-storm Weather: It was drier to much drier than expected over the weekend across much of South Brazil and Paraguay.  As a result, significant deficits persist across driest areas of Brazil and Paraguay, despite recent rainfall.  Areas of thunderstorms expectedly dotted Argentina, which was unneeded given excessive totals since mid-January.  Across Center-West Brazil, above-average rainfall of 2.00”-4.00” occurs through 10 days.  Elsewhere, well-organized rainfall is not expected with only 0.75”-1.50” forecast, including driest areas of South Brazil and Paraguay where 2.00”-2.75” is average.  Rain would be more beneficial for later-maturing soybeans and to improve soil moisture for second-planted corn in Parana 

·         Mar Corn Up $.020 at $4.4725; May Up $.02 at $4.5275.  The funds bought 6 K to close out the week  

·         Mar SB Up $.13 at $13.5050; May Up $.10 at $13.3675.  Funds sold 3 K; bought 2 K SBM and sold 4 K SBO

·         Mar Wheat Up $.03 at $6.0150; May Wheat Up $.0175 at $5.98.  The funds bought 4 K on Friday

 

CORN/SORGHUM

·         ATI Research: Crop insurance base pricing update—Avg. of December 2014 corn futures for Feb. 3-14 was $4.5753

·         T-storm Weather: Temperatures average cooler than usual the next 10 days across Argentina as multiple storm systems flow eastward.  Although rain is unneeded, the lack of heat allows corn to develop free of temperature stress

·         Export Inspections released at 10 AM CST; Corn, 34.4 needed; 27.4 last week.  Milo—3.6 needed; 2.6 last week

·         Commitment of Traders report: Non-Commercial long corn futures only positions increase 6,343 contracts

SOYBEANS/WHEAT

·         ATI Research: Crop insurance base pricing update—Avg. of November 2014 soybean futures, Feb. 3-14 was $11.1945

·         T-storm Weather: A wetter short-term weather pattern is verifying in Mato Grosso, Brazil; soybean harvesting slows

·         Export Inspections released at 10 AM CST; Soybeans, 10.1 needed; 57.0 last week

·         Commitment of Traders report: Non-Commercial long soybean futures only positions increase 27,299 contracts

·         Export Inspections released at 10 AM CST; Wheat, 21.7 needed; 16.4 last week

·         Commitment of Traders: CBT Non-Commercial long CBT wheat futures only positions decrease 1,469 contracts

·         T-storm Weather: Sharply colder temperatures are forecast to return for several days next week (Feb. 24-March 2).  The potential for a wheat winterkill event will exist in the Plains during this time, especially Nebraska & South Dakota

ENERGY

·         Energy markets are higher: QCLH14, +$0.87 at $101.17; QRBH, +$0.0104; QNGH, +$.305 andQHOH, +$.0226

·         Cash ethanol markets were mostly firmer on Friday:  Chicago and Gulf were 2 ½ higher; Tampa was up 10; Dallas climbed 10 ½;  New York dipped a penny; and LA gained 10 ½ to $2.58 per gallon

·         RINs gained: 2012’s up 2, to 57-59; 2013’s were 1 ½ firmer to 58-59; and 2014’s advanced ¼ to 54 ½-56

·         The March RBOB/March ethanol spread snugged in $.0159/gallon, to $.7483 per gallon

LIVESTOCK/POULTRY                                     &n​bsp;                     

·         Choice boxed beef values eased 42-cents Friday, but then jumped $3.30 on Monday

·         The USDA 5-area weekly average steer price for last week was $141.89, up $1.36 from the week before

·         The USDA pork carcass cutout gained 27-cents Friday and firmed another 68-cents yesterday

·         The USDA’s Iowa/Minnesota average cash lean hog price eased 8-cents yesterday to $88.45

Sources: Bloomberg, Dow Jones, AP, T-storm Weather