HIGHLIGHTS
· MARKET TREND: CH, Down $.0050; SF, Up $.0650; WH, Up $.0450; KWH, Up $.0275
· In what appears to be a quite week of holiday trading, global equity markets are edging higher. Shanghai led Asia up, closing +.85%; the Nikkei rose .58% and the Hang Seng, +.36%. Europe is trading to the plus side: mining stocks and energy limited gains on the FTSE to +.26%; the CAC 40 is 1.34% higher and the DAX, +1.48%. Pre-market indicators suggest a positive start in the U.S.: DOW futures, +69; NAS, +19 and the S&P, +7. Energies are higher; the $ Index is up .120 @ 98.07 and gold is , +$.60
· T-storm Weather: Waves of energy trigger occasional thunderstorms across much of Argentina, southern Brazil, and Paraguay over the next 10 to 14 days. Upcoming rain continues the wettest November-December in southern Brazil since before 1977 by a large margin. To the north, isolated thunderstorms occur over the next few days, followed by an uptick in coverage from around Friday forward as air masses collide, resulting in above-normal rainfall over the first 10 to 14 days of January; e.g. widespread rainfall of 4.00” to 8.00” is probable, which is wetter than then 4.00” to 5.00” that is approximately normal of the period. In the U.S., a sharply drier pattern develops to improve transportation logistics region-wide
· CH, Down $.0050 @ $3.6025; CK, Down $.01 @ $3.6675. The funds sold 5 K to open the week
· SF, Up $.0650 @ $8.71; SH, Up $.0525 @ $8.6650. Funds sold 8 K SB; 3 K SBM and 7 K SBO
· WH, Up $.0450 @ $4.71; WK, Up $.0450 @ $4.7775. The funds were even on Monday
CORN/SORGHUM          
·  ATI Research: U.S. corn balance sheet; 15/16 carryout unchanged at 1.838 bbu; 16/17 carry-out steady at 1.720 bbu
· ATI Research: U.S. sorghum balance sheet; 15/16 carryout unchanged at 52 mbu; 16/17 carry-out steady at 58 mbu
· Consultant: While heavy rains in southern Brazil delayed soybean planting, they have actually been beneficial for the full-season corn crop that was plated before the moisture got excessive. Early yield reports are very high
· T-storm Weather: Widespread above-normal rain affects Argentina through two weeks, limiting heat on corn crop
· USDA export inspections: Year-to-date U.S. corn exports of 359 mbu are down 21% vs. last year’s 457 million
SOYBEANS/WHEAT
· ATI Research: U.S. soybean balance sheet; 15/16 carryout unchanged at 510 mbu; 16/17 carry-out steady at 388 mbu
· USDA export inspections: Year-to-date U.S. soybean exports of 958 mbu are down 11% vs. last year’s 1081 mbu total
· Consultant: If heavy rains forecast for driest soybean areas of Brazil materialize in early January, it would probably stabilize the situation for a period of time. If the rains do not develop, additional losses are sure to follow
· USDA export inspections: Year-to-date U.S. wheat exports of 432 mbu are down 13% from last year’s 496 mbu total
· T-storm Weather: Colder temps are forecast for 7-10 days, but U.S. wheat winterkill is unlikely in snow-free areas
ENERGY
· Mostly Firmer: CLG16,+$.15, $36.96; EBG, +$.11; EBG-CLGH, -$.23, -$.04; RBG, -$.0028;NGG, +$.037; HOG, +$.0018
· A mostly firmer trend was noted in cash ethanol markets on Monday compared to Thursday: Chicago down 3/8; New York, Tampa and Gulf up 1 ½; Dallas added ½; and LA was 1 ½ higher at $1.53 per gallon
· Ethanol RINs mixed: 2014’s up ¼ to 69 ¾-70 ¾; 2015’s steady at 69 ¾-70 ¼; and 2016’s down ¼ at 68 ¼-68 ¾
· The Jan RBOB/Jan Ethanol inverse gained nearly 2 1/3 cents on Monday, settling at -$.1594/gallon
LIVESTOCK/POULTRY ; ;
· Choice boxed beef values increased $3.46 to $201.09 on Monday and are up $9.81 vs. a week ago
· 5-Area Weekly Weighted Average Steer price up $6.76 last week to $123.40/cwt but is $38.55 lower vs. last year
· The USDA mandatory pork carcass cutout firmed 59-cents on Monday to $70.07 but is $1.17 lower vs. last week
· CME Lean Hog Index was down $0.51 at $53.50. February futures $0.825 higher and are $5.625 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather