HIGHLIGHTS
· MARKET TREND: CH, Down $.0050; SF, Down $.0750; WH, Steady; KWH, Down $.0425
· Not a good start to 2016—weak Chinese PMI, down .4 to 48.2; Saudi Arabia severs diplomatic ties with Iran after embassy attacked. China halts following after a precipitous 7% drop; Nikkei closes 3.06% lower and the Hang Seng loses 2.7%. In Europe the DAX is down over 4%; the FTSE is off 2.4% and the CAC 40 is 2.6% lower. Wall Street doesn’t look pretty: DOW futures off 309; NAS, 95 lower and the S&P, down 36 ½. Crude is marginally higher; the $ Index is off ½ point and gold is $11.40 firmer
· T-storm Weather: Widely scattered thunderstorms dotted areas in / adjacent Center-West Brazil over the last several days, but highest coverage was in Mato Grosso do Sul and wet Parana (and Paraguay), and coverage was low in North and Northeast Brazil. Heavy thunderstorms also affected parts of central and western Argentina over the last two days. Temperatures region-wide were seasonable to slightly warm, but not hot. Occasional thunderstorm clusters occur across northern soybean areas of Brazil through 10 days with total rainfall of 3.00” to 6.00” compared to normal of 2.50” to 3.50”. To the south in excessively-wet southern Brazil and Paraguay, near-normal rainfall in Paraguay tapers to below-normal with eastward extent over the next week
· CH, Down $.0050 @ $3.5825; CK, Down $.0050 @ $3.64. The funds sold 1 K Thursday
· SF, Down $.0750 @ $8.78; SH, Down $.0450 @ $8.7075. Funds sold 3 K SB; 3 K SBM and 4 K SBO. Del’y: SBO, 373
· WH, Steady @ $4.70 WK, Down $.0025 @ $4.7625. The funds were even ahead of New Year’s
CORN/SORGHUM           </p>
· ATI Research: U.S. 2015/16 corn reported under loan as of Dec. 31 was 559.1 mbu. This is up 124.6 mbu (29%) from the 434.5 mbu of 2014/15 corn reported under loan at this time last year
· March 2016 corn futures closed at $3.58 ¾ on Thursday, the lowest settlement price for the life of the contract
· T-storm Weather: First-crop corn in southern Brazil (and likely Paraguay) were #1 wettest since before 1977 by a whopping margin; 26.68” of rain fell since Nov. 1, besting next-wettest periods in 1982, 2002, 2003 & 2009 by ~8.00”
· Export Inspections released at 10 AM CST; Corn, 39.7 needed; 22.5 last week; Sorghum, 5.1 needed; 6.6 last week
SOYBEANS/WHEAT
· ATI Research: U.S. 2015/16 soybeans reported under loan as of Dec. 31 was 101.0 mbu. This is up 35.5 mbu (54%) from the 65.5 mbu of 2014/15 soybeans reported under loan at this time last year
· Export Inspections released at 10 AM CST; Soybeans, 21.6 needed; 51.5 last week
· ATI Research: U.S. 2015/16 wheat reported under loan as of Dec. 31 was 59.9 mbu. This is up 29.4 mbu (97%) from the 30.5 mbu of 2014/15 wheat reported under loan at this time last year
· Export Inspections released at 10 AM CST; Wheat, 16.7 needed; 11.2 last week
ENERGY
· Firmer: CLG16,+$.27, $37.32; EBG, +$.54; EBG-CLG, $.50, +$.26; RBG, +$.0287; NGG, -$.047; HOG, +$.0137
· Cash ethanol markets were mixed on Thursday: Chicago firmed 7/8; New York added ¾; Gulf increased 1; Tampa down ½; Dallas unchanged; and LA was 1 lower at $1.51 ½ per gallon
· Ethanol RINs were mixed: 2014’s off ¼ at 69 ½-70 ½; 2015’s eased ¼ to 69-70; but 2016’s gained 5/8 to 69-69 ¾
· The Feb RBOB/Jan Ethanol inverse lost $.0171 on Thursday to -$.1329/gallon
LIVESTOCK/POULTRY <wbr>  
·   Choice boxed beef values increased $3.92 on Thursday, and at $212.59 are $14.96 higher vs. a week ago
· Dressed steer weight for week end Dec. 19: 907 lbs, dn 2 pounds v. last week, 917.5 for 4-week avg. & 892 last year
· The USDA mandatory pork carcass cutout gained $1.13 on Thursday to $68.70 but is 78-cents lower vs. last week
· CME Lean Hog Index was down $0.05 at $52.92. February futures up $0.025 and are $6.888 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather