HIGHLIGHTS
· MARKET TREND—A little firmer: CH, up $.0125; SH, up $.0825; WH, up $.0025; KWH, up $.0250
· MACRO: Friday’s stellar close, driven by the jobs # initially carried over into the international markets this moning; House Republicans say they are poised to roll back Dodd-Frank. ASIA-Firmer: Nikkei, +0.31%; Hang Seng, +0.95%; Shanghai, +0.59%. EUROPE-Mostly lower: FTSE, +0.18%; DAX, -0.31%; CAC, -0.02%. Wall STREET-Futures trying to work higher: DOW, +2; S&P, +0.50; NASDAQ, -0.50. EXTERNALS: $ Index, +0.138 @ 99.98; Gold, +$6.00 @ $1,226; and Mar Crude is up $0.14 @ $53.97
· T-storm Weather: Surface-level high pressure limits rain across Argentina, southern Brazil & Paraguay through Friday. Thunderstorms totaling 1.25”-3.50” occur over Sat.-Mon. across Argentina and Paraguay with highest totals across the northwest half of Argentina. To the north, frequent thunderstorms continue across the northern third of Brazil’s corn and soybean growing areas over the next 10 days, with amounts reaching 3.00”-6.00”; highest totals across the northern 10%-20% of production
· Corn: CH up $.0125 @ $3.6650; CK up $.0075 @ $3.7350. The funds sold 6 K on Friday
· SB: SH up $.0850 @ $10.3550; SK up $.0825 @ $10.4550. Funds sold 6 SB; 3 SBM; 7 SBM. Crush: $.75, -$.03; LY: $.58
· Wheat: up $.0025 @ $4.3050; WK down $.0025 @ $4.4275. The funds ended the week selling 4 K
CORN/SORGHUM
· March 2017 corn futures on Friday closed at $3.65 ¼; one year ago, March 2016 corn settled at $3.65 ¾
· T-storm Weather: One of the wetter February’s in recent decades may be forthcoming to northern areas of Center-West & Southeast Brazil (as well as North & Northeast Brazil) given rain of 5.00”-10.00” is most likely through Feb. 20
· Consultant: Concern surfacing regarding drier long-term forecasts for safrinha (double crop) corn in Parana, Brazil
· ATI Research: The PNW can supposedly put corn into Japan and South Korea some $1-$6 per tonne cheaper than the Gulf through April/May; hence, a strong western corn pull seems likely for the next several weeks
· Export Inspections released at 10 AM CST; Corn, 45.2 mbu needed; 41.8 last week. Milo—4.8 needed; 9.5 last week
SOYBEANS/WHEAT
· March 2017 soybean futures on Friday closed at $10.27; one year ago, March 2016 soybeans settled at $8.67 ½
· ATI Research: Soybean exports from PNW may not be done. Known/estimated unshipped sales to China are 75-80 mbu larger than each of past 2 years. Past 2 years have seen PNW bean exports next 4-5 weeks run 25-30 per week
· Brazil soybean crop estimates are increasing with Safras & Mercado projection up 1.0 MMT to 107.1 (USDA at 104.0)
· Export Inspections released at 10 AM CST: Wheat, 19.9 needed; 11.8 last week
· T-storm Weather: U.S. HRW wheat remains fairly dry and occasionally unseasonably mild over the next 10 to 14 days
ENERGY
· Higher: CLH17, +$0.14 @ $53.97; EBJ, +$0.03; EBH-CLH, $2.85, -$0.14; RBH, +$.0056;NGH, +$0.001; HOH, +$.0119
· Cash ethanol markets were higher on Friday: Chicago up 1/8; New York firmed 2 ¼; Gulf added ¼; Dallas increased 2; Tampa climbed 2 ½; and LA was 2 ½ higher at $1.62 per gallon
· Ethanol RINs were higher on Friday.: 2015’s up 4 at 43-49; 2016’s gained 4 ½ to 43-51; & 2017’s added 4 ½ to 45-51
· The Mar RBOB/Feb ethanol spread lsot $.0172 on Friday, falling to +0.0267/gallon, premium to RBOB
LIVESTOCK/POULTRY    
·   Choice boxed beef values fell $1.61 on Friday to $191.40, and are $1.30 lower vs. a week ago
· U.S. cattle slaughter week end Feb. 4 up 10.8% v. last year but beef production 10.6% higher due to lighter weights
· USDA mandatory pork carcass cutout value increased 91-cents on Fri. to $83.92, and is up $1.35 vs. last week
· CME Lean Hog Index firmed $.67 on Fri. to $70.30. February futures eased $0.025 & are $0.025 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather