HIGHLIGHTS
· MARKET TREND: CH, Down $.0025; SF, Down $.0025; WH, Up $.0075; KWH, Down $.0025
· Global equity markets are higher ahead of today’s expected ¼% interest rate increase by the Fed. Asian markets saw a 2.0% gain for the Hang Seng; the Nikkei closed up 2.6% and Shanghia, +.19%. Europe finds all 3 major bourses up .84-.89% at mid-day, despite an EU survey of purchasing managers which found economic activity slowing since the Paris attacks. Pre-market indicators have DOW futures up 101; the NAS is 27 ¼ higher and the S&P, +11. $ Index, -.018; Jan WTI, -$.22; gold, +$2.50
· T-storm Weather: A series of storm systems focus heavy rain on southern Brazil and Paraguay over the next 10 days, continuing the wettest November-to-December open in decades – notice corn (and soybeans) in southern Brazil received approximately 19.00" of rain since November 1, compared to normal rainfall of 9.00", which is considerably wetter than any of the last 38 years (1982 and 2009 were 3.00" to 4.00" drier). Isolated thunderstorms also continue in northern soybean areas of Brazil into the weekend, followed by better coverage next week when cool fronts have an easier time shifting northward
· CH, Down $.0025 @ $3.77; CK, Down $.0050 @ $3.8175. The funds sold 2 K Tuesday
· SF, Down $.0025 @ $8.67; SH, Down $.0025 @ $8.6750. Funds: sold 4 K SB; 4 K SBM and 5 K SBO
· WH, Up $.0075 @ $4.95; WK, Up $.0075 @ $5.01. Fund buying totaled 2 K yesterday
CORN/SORGHUM     ;  
· ATI Research: U.S. corn exports for the up-coming 4-week period forecast at 20-25 mbu per week vs. 25.4 last year
· T-storm Weather: In Argentina, mainly dry weather occurs until a slow-moving cold front triggers heavy thunderstorms within Wednesday-Friday; 1.00-2.00” of rain occurs to slow corn planting
· Consultant: Full-season corn in southern Brazil is generally in good to very good condition
· Ethanol margins: $0.13 per gallon—down from $0.18 last week and below $0.73 last year. EIA report at 9:30 a.m. CST
SOYBEANS/WHEAT
· ATI Research: Last year, U.S. soybean exports averaged 64 mbu per week for the up-coming 4-week period vs. 81 for the previous 4-week period. The current 4-week avg. is 63.2 with 46-50 expected through the 1st week of January
· Consultant: The forecast for next week looks promising for more rain in central Brazil and less rain in southern Brazil, which would be beneficial for soybeans in both regions
· ATI Research: U.S. all wheat exports are projected to range from 12-18 mbu per week short-term
· Consultant: Conab reduced their estimate of the Brazilian wheat crop from 6.2 MMT to 5.6 MMT. However, a lot of wheat Rio Grande do Sul, Brazil is of such poor quality that it will only be used for animal feed
ENERGY
· Weaker: CLF16, -$0.22, $37.13; EBF, -$0.71; EBF-CLF, $.60, -$.50; RBF, +$.0040; NGF, -$.031; HOF, -$.0098
· EIA estimates: crude, -1.4 (API: +2.3); Gasoline, +1.3 (+0.089); Distillates, +1.6 (-1.8)
· Cash ethanol markets were mostly weaker on Tuesday: Chicago and New York off 1 ½; Gulf down 1 ¼; Tampa and Dallas eased ¼; but LA was 3 higher $1.55 per gallon
· Ethanol RINs firmer: 2014’s added 1/8 to 72 ¾-75 ½; 2015’s up ¼ to 72 ½-75; & 2016’s climbed ¼ to 72 ½-75
· The Jan RBOB/Jan Ethanol inverse was little changed Tuesday at -$.2006 per gallon
LIVESTOCK/POULTRY ;
· Choice boxed beef declined $1.57, are down $6.93 vs. last week and 26% lower compared to theMay 19 peak
· Live cattle bids of $117-118 were seen on Tuesday in the South, well below asking prices around $122
· On Tuesday, USDA mandatory pork carcass cutout eased 8-cents but is $2.46 higher vs. last week
· CME Lean Hog Index was down $0.08 at $55.90. February futures $1.20 lower but are $3.025 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather