HIGHLIGHTS
· Market Trend: Corn, Up 1-2; Soybeans, Up 4-5; Wheat, Up ½-1
· Overseas equity markets are unanimously higher this morning, sort of. Asia had the Nikkei up .01%; Shanghai gained .69% and the Hang Seng, +.83%. Mid-day trade in Europe shows a 1.19% increase in the CAC 40; the DAX is 1.15% higher and the FTSE, up .93%. Release of the Federal Reserve’s December minutes will be a point of interest regarding implications for interest rates and early-on, the market will focus on ADP’s employment #’s. Pre-market indicators: DOW, +100; S&P, +13 ¼ and the NAS, +24. Outside markets show gold off $7.90; oil is slightly higher and the dollar is firmer against the euro.
· T-storm Weather: Upper-level high pressure limits thunderstorm coverage and induces above-average warmth across Center-West and Southeast Brazil over the next 10 days; most of the region is probable to receive less than one-half of its average through the period. The setup causes a parade of systems to flow across Argentina through 10 days, causing numerous thunderstorm clusters to focus on key central growing areas; 3.50" to 5.50" occurs, compared to an average of around 1.50". The potential exists for pockets of excessive wetness to develop from this area into South Brazil
· Mar Corn Up $.0175 at $4.0675; May Up $.02 at $4.1550. Del’y: 49 ethanol. The funds ended the day even
· Jan SB Up $.0425 at $10.5525; May Up $.0475 at $10.6050. Del’y: SB, 0; SBO, 200. Funds: bought 5 K SB; 2 K SBM; even on SBO
· Mar Wheat Up $.0050 at $5.9225; May up $.01 at $5.97. The funds bought 4 K on Tuesday
CORN/SORGHUM ;  
· ATI Research: Outlook for U.S. corn exports is guarded. Recent inspections of approximately 28 mbu per week are 8-10 million below last year with some gradual improvement expected
· T-storm Weather: Some Argentina corn too wet last 30 days in/adjacent to N. Santa Fe where surpluses exceed 8.00”
· Private crop consultant: Argentina corn planting is approximately 80% complete; some dryness concern in the South
· Ethanol margins: $0.39 per gallon vs. $0.71 a week ago well below $0.86 last year. EIA report at9:30 AM CST
SOYBEANS/WHEAT
· ATI Research: U.S. unshipped export sales of soybeans are now lagging about 100 mbu below a year ago at this time
· Private crop consultant: Drying trend for soybeans in central and northeastern Brazil is notable
· T-storm Weather: A round of rain would be ideal for soybeans in Center-West Brazil
· ATI Research: U.S. HRW wheat export sales the last 4 weeks are a 6-year low and 28% below the 10-year average
· T-storm Weather: Patchy winterkill remains plausible in southern SRW wheat areas of Corn BeltThursday morning
ENERGY
· Futures are mixed: QCLG15, +$0.09 at $48.26; QRBG, -$0.0077; QNGG, +$.023; and QHOG, -$.0199
· EIA estimates: crude, +0.3 (API: -4.0); Gasoline, +3.2 (+6.9); Distillates, +2.3 (+9.1)
· Cash ethanol markets were lower on Tuesday with significant declines noted in some locations: Chicago off 8 ¼; New York down 9 ½; Gulf eased 7; Tampa slid 11 ½; Dallas dropped 10; and LA was 6 ½ lower at $1.65 ½ per gallon
· Sharp gains in RINs: 2013’s added 7 to 85-90; 2014’s up 7 to 86-91; and 2015’s jumped 7 to 85-90
· The Feb RBOB/Feb Ethanol spread eased somewhat with the inversion losing $.0258 to -$.1159 per gallon
LIVESTOCK/POULTRY <wbr>  
· Choice boxed beef values were 97-cents higher on Tuesday compared to Monday
· Cash cattle trading was surprisingly active Tues. with prices as much as $3-$4 higher vs. last week at $170 in the South
· USDA pork carcass cutout value down 67-cents Tues., is $3.95 below last week & at lowest level since April 16, 2013
· CME Lean Hog Index 12-cents lower at $77.79. February futures down $1.35 to $78.575 and $0.785 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather