HIGHLIGHTS
· Market Trend: Corn, Down ½ to 2; Soybeans, Down 4-6; Wheat, Down 4-5
· Mixed results overseas this morning—much of Asia was lower: the Hang Seng dropped .96% and the Nikkei fell .59% with Shanghai managing to post a .53% gain. Europe trading in a similar fashion—CAC up .04% with both the FTSE and DAX off .30-.35%. ADP’s private payrolls report is out this am, 215 K expected for Feb but down from 257 K in Jan. U.S. pre-markets are all negative: DOW, -61; S&P, -7 ½; NAS, -13.7. Outside markets: the $ Index is working higher, up .312 at 95.72; energy futures are mixed and gold is weaker with the March contract down $1.70 to $1,202.30.
· There is a daily chance for rainfall across Mato Grosso, Brazil today-Thursday to go along with mostly near normal temperatures. Rain could halt soybean harvest and also delay planting of second-crop corn. Further south, mostly dry weather is forecast for Rio Grande do Sul and Parana today, although a few showers are possible tomorrow. Temperatures are forecast to average near to above normal through Thursday. Scattered rain lingers in northern areas of Argentina today-Thursday. Temperatures average near to below normal in the north and near to above normal in the south
· Mar Corn Down $.0075 at $3.8125; May Down $.0150 at $3.8950. Dely: 1,065. The funds bought 3 K on Tuesday
· Mar SB Down $.0425 at $10.0450; May Down $.06 at $10.0625. Dely: 0 SBO. Fund activity—sold 4 K SB; 2 K SBM & bought 2 K SBO
· Mar Wheat Down $.0450 at $5.0425; May Down $.0475 at $5.0125. Dely: 250 SRW. Fund selling indicated at 3 K yesterday
CORN/SORGHUM     ;  
· ATI Research: We expect near-term U.S. corn exports to average 30-35 mbu per week
· ATI Research: Near-term U.S. sorghum exports to avg. 6-7 mbu per week or about 1 million more per week than 2014
· Private crop consultant: Drier weather last week in Mato Grosso, Brazil allowed farmers to advance second-crop corn planting to 64%. Generally second-crop corn in Brazil must be planted by mid-March
· Ethanol margins: $0.33 per gallon vs. $0.26 last week but below $1.00 last year. EIA report at9:30 AM CST
SOYBEANS/WHEAT
· ATI Research: We expect near-term U.S. soybean exports to average 20-25 mbu per week
· Private crop consultant: Delivery of soybeans to the Brazilian ports has been significantly slower than normal; e.g. the Port of Paranagua usually receives about 950 trucks per days but last week averaged maybe 50 per day
· ATI Research: U.S. all wheat exports are projected to average 15-20 mbu per week over the next month
· USDA pegging Kansas 2015 wheat crop conditions at 44% Good/Excellent compared to 46% one month ago
ENERGY
· Futures are mixed: QCLJ15, +$0.17 at $50.69; QRBJ, -0.0193; QNGJ, +$.037; and QHOJ, -$.0170
· EIA estimates: crude, +4.6 (API: +2.9); Gasoline, -1.8 (+0.5); Distillates, -2.6 (-0.3)
· Additional gains were seen in cash ethanol markets on Tuesday: Chicago up 1 3/8; Gulf added a penny; New York gained 1 ¾; Dallas climbed 2; Tampa jumped a nickel; and LA was 5 higher at $1.63 ½ per gallon
· Steady to higher RINs: 2013’s unchanged at 70 ¼-70 ¾; 2014’s up ½ to 71 ¾-72 ¼; and 2015’s gained ½ to 70 ¾-71 ¼
· The April RBOB/Mar Ethanol spread gained 2 ½ cents to $.4759, premium RBOB
LIVESTOCK/POULTRY ; ;
· Choice boxed beef values gained $0.94 on Tuesday and have increased $11.93 over the last twelve trading days
· April 2015 live cattle futures closed at $150.95 on Tuesday compared to $150.575 one month ago.
· The USDA mandatory pork carcass cutout value was down 50-cents on Tuesday and is $2.04 lower vs. last week
· CME Lean Hog Index was $1.08 higher at $66.67. April futures down $2.075 to $65.60 and is $1.07 below the index
Sources: Bloomberg, Dow Jones, AP, DTN Ag Weather