HIGHLIGHTS
· MARKET TREND: CH, Down $.0050; SF, Down $.0025 WH, Up $.0150; KWH, Up $.0075
· Asia was mixed overnight: Shanghai dropped .64%; the Nikkei closed .51% lower & the Hang Seng posted a .44% gain. In Europe, the DAX is taking the day off; the FTSE is little changed and the CAC 40 is off .43%. The DOW was triple digits higher yesterday; futures are slightly lower in an abbreviated day of trading: DOW, -1; S&P, -1.50; NAS, -1.50. Outside markets: gold, +$3.30; $ Index, -.357 @ 98.01; WTI crude is 7 cents lower at $37.43/barrel. Santa’s sleigh runs on Light-Sweet Cushing crude?
· T-storm Weather: Upper-level high pressure and a steady influx of relatively dry air keep northern soybean areas of Brazil drier and warmer than normal over the next 7-10 days. Changes potentially follow, but it remains unclear whether computer models are generating seasonably-heavy rainfall over the first week of January in response to a true weather event, or by incorporating climatological values for humidity, which are typically much higher than they will be over the next 7-10 days. We will forecast seasonably-heavy rain of 1.75"-3.50" in first week of January in driest areas; this issue will not be better resolved until next week
· CH, Down $.0050 @ $3.65; CK, Down $.0050 @ $3.7172. The funds sold 2 K at mid-week
· SF, Down -$.0025 @ $8.8150; SH, Up $.0025 @ $8.81. Funds sold 3 K SB; 4 K SBM and bought 1 K SBO
· WH, Up $.0150 @ $4.7125; WK, Up $.0125 @ $4.7825. Fund selling amounted to 3 K yesterday
CORN/SORGHUM     ; ;
· Export Sales to be released at 7:30 AM CST. Trade expects 20-28 mbu for 15/16 corn
· March 2016 corn futures closed at $3.65 ½ on Wednesday, equaling the lowest settlement price for the contract
· ATI Research: Unshipped U.S. corn export sales to the Far East (defined as Japan, Taiwan, South Korea, Indonesia, Malaysia, the Philippines, Thailand and Vietnam) are only 72 mbu—the smallest in 29 years
· T-storm Weather: Key areas of central/southern Argentina turn hot from Friday forward, but the pattern likely helps thunderstorms to recur from around Tues. forward, keeping planted crops moist while slowing ongoing corn planting
· Ethanol grind: 973,000 barrels/day for week end Dec. 18—down 2.7% vs. last week and 1.9% lower vs. last year
SOYBEANS/WHEAT
· Export Sales report. Trade expects 33-40 mbu for 15/16 soybeans; soymeal, 75-250 K MT; and soyoil, 5-15 K MT
· November 2016 soybean futures closed at $8.95 ¼ Wed.; one year ago, November 2015 futures settled at $10.14 ¼
· Consultant: Weather during January, which is the main pod filling month in Brazil, will be the key to soybean yields
· Export Sales report. Trade expects 9-17 mbu for 15/16 all wheat
· T-storm Weather: Very heavy rainfall affects the U.S. Delta and southeast half of the Corn Belt over the next week as large systems parade eastward; 2.50” to 5.00” of rain affects key SRW wheat areas
ENERGY
· Mostly Higher: CLG16,-$.07, $37.43; EBG, -$.29; EBG-CLGH, -$.34, -$.20; RBG +$.0015;NGG, +$.005; HOG, -$.0159
· Cash ethanol markets were steady to firmer on Wednesday: Chicago up 1; New York steady; Gulf added 2 ½; Tampa and Dallas firmed 2; and LA was 3 ½ higher at $1.49 ½ per gallon
· Ethanol RINs higher: 2014’s up ¾ to 72-72 ½; 2015’s added 1 to 71 ½-72; & 2016’s climbed ½ to 71-71 ½
· The Jan RBOB/Jan Ethanol inverse tugged in 3 ¼ cents to -$.1526/gallon yesterday
LIVESTOCK/POULTRY    
· On Wednesday, choice boxed beef values increased $3.37 but are still down $2.00 vs. a week ago
· February 2016 live cattle futures on Wed. closed at $134.675—highest settlement price for the contract since Nov. 12
· The USDA mandatory pork carcass cutout plummeted $2.48 on Wednesday and is at the lowest level since April 22
· Hogs and Pigs: All hogs & pigs, 100.8% (avg. est. 101.4%); breeding, 101.1% (100.9%), market, 100.7% (101.4%)
Sources: Bloomberg, Dow Jones, AP, T-storm Weather