HIGHLIGHTS
· MARKET TREND: CH, Up $.0025; SH, Down $.0025; WH, Up $.0050; KWH, Up $.0125
· Tuesday’s sell-off in oil has investors worried about job cuts and reduced sector investment.Asia followed yesterday’s miserable Wall Street performance: Nikkei plunges 3.2%; Shanghia sheds .35% and the Hang Seng gave up 2.3% of its value. Europe is somewhat weaker this morning: CAC, -.3%; FTSE, -.5% and DAX, -1.2%. Swiss agchem giant Syngenta agrees to ChemChina buy-out. U.S. pre-markets: DOW, +25; NAS, +3/4; S&P, +3 ¾. The $ Index is off ¼; gold is $1.80 higher and March WTI, +$.55/barrel
· T-storm Weather: Upper-level high pressure limits thunderstorm coverage across northern areas of Brazil through the middle of next week, aiding soybean harvesting and corn planting. A wetter pattern likely follows as the high weakens and allows cool fronts to sweep further north from late next week forward. Otherwise, rain chances continue to increase across key areas of Argentina as a cool front triggers some thunderstorms Thursday-Friday., followed by heavier rainfall Sunday-Monday as a strong system passes; driest and wettest areas turn wetter. After the winter storm system exits the central U.S., temperatures vary within a wide range over the following 10 days, but significant precipitation is not immediately foreseen
· CH, Up $.0025 @ $3.7225; CK, Up $.0025 @ $3.7775. Fund buying amounted to 2 K on Tuesday
· SH, Down $.0025 @ $8.8675; SK, Steady @ $8.8875. Funds bought 3 K SB; 4 K SBM and 1 K SBO
· WH, Up $.0050 @ $4.7575; WK, Up $.0025 @ $4.8025. The funds were even in yesterday’s trade
CORN/SORGHUM     ;
· ATI Research: U.S. weekly corn exports over the near-term are projected to be in the 28-32 mbu range with a port split of 20-24 via the Gulf; 4-6 through the Interior; and 2-4 off the PNW
· Consultant: Drier weather in Argentina starting to be a concern for corn. Outside of a few very dry areas, however, the dryness would have to persist for another 1-2 weeks before the situation would become critical
· T-storm Weather: A strong round of storms occurs Feb. 7-8 in central/southern Argentina, producing widespread rain of 1.00”-2.00” the next 10 days. The end result is drying is likely to break in eastern Argentina through n next week
· Ethanol margins: $0.11 per gallon—up from $0.04 last week but below $0.38 last year. EIA report at 9:30 a.m. CST
SOYBEANS/WHEAT
· ATI Research: U.S. weekly soybean exports are forecast to be in a broad range of 30-40 mbu per week short-term
· Consultant: Argentina’s soybean crop is not mature enough to be at a critical stage during developing dryness
· ATI Research: U.S. weekly all wheat exports are forecast to average 10-15 mbu per week through February
· T-storm Weather: After current U.S. storm ends, below-normal precip is probable across a large area into mid-Feb.
ENERGY
· Mixed: CLH16, +$0.55, $30.43; EBJ, +$0.56; EBJ-CLH, +$2.92, +$.08; RBH, -$.0298; NGH, -$.003; HOH, +$.0174
· EIA estimates: crude, +3.5 (API: +3.8); Gasoline, NA (+6.6); Distillates, NA (+0.4)
· Cash ethanol markets had a softer tone yesterday: the Gulf eased 1 ½ cents; Chicago was off 1 1/8 to $1.4050; NY gave up a penny to $1.49; Dallas was ¾ of cent lower; LA, down ½ and Tampa, unchanged
· Ethanol RINs increased: 2014’s rose ½ to 68 ¼ -69 ½; 2015’s gained ½ to 68-69 ¼; and 2016’s up ½ to 68-69 ¼
· The Feb RBOB/Feb Ethanol spread surged over $.08 to -$.4152 per gallon yesterday as oil fell
LIVESTOCK/POULTRY  
·  Choice boxed beef values were $1.95 higher on Tuesday, but at $222.47 are still 54- cents lower vs. last week
· U.S. cattle slaughter for Tuesday was estimated at 80,000 head compared 112,000 a week ago and 113,000 last year
· The USDA mandatory pork carcass cutout was up 55-cents on Tuesday, and at $77.02 is the highest since Nov. 2
· U.S. hog slaughter for Tuesday was estimated at 315,000 head compared 440,000 a week ago and 437,000 last year
Sources: Bloomberg, Dow Jones, AP, T-storm Weather