HIGHLIGHTS
· MARKET TREND: CH, Down $.01; SF, Down $.0475; WH, Down $.0125; KWH, Down $.02
· China #’s continue to disappoint, more weakness in oil and reports of a possible nuclear test in North Korea pushed much of Asia lower overnight. Shanghai was the exception however, rising 2.27%. The Nikkei and Hang Seng were both down around 1%. Europe is faring worse with mid-day values showing losses of 1.7+% for the DAX and CAC 40; the FTSE is 1.6% lower. Pre-market indicators don’t bode well for Wall Street: DOW futures, -252; NAS, -77.50 and the S&P, -31.25. Feb WTI is 92 cents lower
· T-storm Weather: Dissipating cool fronts trigger occasional thunderstorms in driest northern areas of Brazil over the next two weeks, producing above-normal rainfall of 4.00" to 8.00" (3.75" to 5.50" is normal). Widely scattered and unneeded thunderstorms dot southern Brazil and Paraguay into the weekend, followed by higher coverage and amounts next week when the next series of systems pass; above-normal rainfall continues exceptional wetness. In Argentina, occasional thunderstorms continue in western and northern areas (including northern areas where corn and soybean planting was incomplete), followed by better rain chances region-wide when the next set of systems begin to pass around Sunday-Monday
· CH, Down $.01 @ $3.52; CK, Down $.0075 @ $3.5775. The funds bought 1 K yesterday
· SF, Down $.0475 @ $8.63; SH, Down $.0425 @ $8.53. Funds bought 1 K SB; 2 K SBM and sold 4 K SBO. Del’y: SBO, 327
· WH, Down $.0150 @ $4.5975; WK, Down $.0125 @ $4.6550. The funds bought 1 K on Tuesday
CORN/SORGHUM       ;
· December 2016 corn futures closed at $3.77 ¾ Tuesday; one year ago, December 2015 corn futures settled at $4.28 ¼
· ATI Research: Near-term U.S. corn exports are est. to avg. 20-25 mbu per week v. last year’s 4-week avg. of 25.7 mbu
· Consultant: Corn crop in Argentina that has been planted continues to be rated almost entirely as good to very good
· T-storm Weather: Near- and above-normal rainfall is forecast for Argentina over the next 10-14 days. Ideally, northern areas would be drier since this is where corn planting is incomplete
· Ethanol margins: $0.14 per gallon—down from $0.18 last week but below $0.48 last year. EIA report at 9:30 a.m. CST
SOYBEANS/WHEAT
· ATI Research: Last year, U.S. soybean exports for the up-coming 4-week period averaged 61.0 mbu per week. The current 4-week avg. is 52.5 with near-term liftings forecast to average 50-55 per week through the end of the month
· Consultant: Heavy rain has been seen in northern Argentina and it is unclear if or when all soybeans will be planted
· ATI Research: U.S. all wheat exports are forecast to range from 12-18 mbu per week short-term
· CBT March wheat on Monday traded down to $4.56, which represents a new contract low
ENERGY
· Mixed: CLG16,-$.92, $35.05; EBG, -$1.36; EBG-CLG, $.02, -$.42; RBG, -$.0456; NGG, +$.004;HOG, -$.0234
· EIA estimates: crude, +0.3 (API: -5.6); Gasoline, +1.8 (+7.1); Distillates, +2.1 (+5.6)
· A weaker trend persisted in cash ethanol markets on Tuesday: Chicago eased 2; New York down 1 ¾; Gulf and Dallas off 2 ½; Tampa declined 3; and LA was 3 lower at $1.48 per gallon
· Ethanol RINs firmed: 2014’s gained ½ to 70 ¾-71 ¾; 2015’s climbed ½ to 70 ½-71 ½; and 2016’s up 7/8 to 70 ½-71 ¼
· The Feb RBOB/Jan Ethanol inverse increased $.0240 cents to -$.0983 yesterday
LIVESTOCK/POULTRY    
· Choice boxed beef values increased $4.25 on Tuesday, and at $222.31 are $16.14 higher compared to a week ago
· Over the past 8 trading days, choice boxed beef values have increased $30.78 (16.1%)
· The USDA mandatory pork carcass cutout gained 7-cents Tuesday to $69.51 but is 24-cents lower vs. the prior week
· CME Lean Hog Index was up $0.08 at $52.95. February futures $1.675 higher and are $8.15 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather