HIGHLIGHTS
· MARKET TREND: CH, Up $.0075; SF, Steady; WH, Up $.0125; KWH, Up $.0075
· Asia closed mostly lower overnight as oil continues to slide; Europe is trading mostly firmer. Shanghai gained 2.5%; the Nikkei lsot 1.8% and the Hang Seng, -.72%. Europe finds the FTSE +.18% higher and the CAC 40, +.53% with the DAX off .05%. The Fed’s interest rate decision is said to be the focus of interest. Futures indicate a lower start to Wall Street: DOW, -44; NAS, -8 ½ ; S&P 500, -4.25. Outside markets: oil, $.80 lower; gold, down $8.90 at $1,067.10 and the $ Index, up .124 at 97.675
· T-storm Weather: Areas of heavy rain expectedly focused on central / northern Argentina and varying areas of Brazil over the weekend. A series of storm systems trigger occasional thunderstorm clusters within southern Brazil and Paraguay over the next 10 days, resulting in above-normal rainfall of 3.00” to 6.00” of rain (and likely wetter in / near Rio Grande do Sul) and continuing the wettest November-to-December open in decades. In northern Brazil, near to slightly below normal rainfall of 1.75” to 3.25” is most probable across Goias and Mato Grosso over the next 10 days (compared to normal rainfall of 2.75” to 3.50”)
· CZ, Up $.0250 @ $3.7550; CH, Up $.0075 @ $3.76. The funds sold 4 K Friday. Del’y: 6 Corn
· SF, Steady @ $8.7075; SH, Steady @ $8.7375. Funds: sold 4 K SB; even on SBM; sold 3 K SBO. Del’y: 42 SBO
· WH, Up $.0125 @ $4.8975; WK, Up $.0125 @ $4.9175. The funds sold3 K yesterday. Dely’: 4 SRW, 0 HRW
CORN/SORGHUM          
· December 2016 corn futures closed at $3.96 on Friday; one year ago, the December 2015 contract settled at $4.31 ¾
· Export Inspections released at 10 AM CST; Corn, 38.5 needed; 19.4 last week; Sorghum, 5.3 needed; 10.7 last week
· USDA long-term agricultural projections: U.S. 2016 corn acreage up 2.4% combined with trend yield of 158.1 bpa results in crop size of 13.900 bbu. Total usage pegged at 13.935 bbu with 2016/17 carry-out estimated at 1.755 bbu
· T-storm Weather: In Argentina, widespread rain of 0.75”-1.50” occurs in southern areas & 1.00”-2.00” central & north through Wed-Thu. Drier and gradually warming weather follow for 7-10 days, improving conditions for corn planting
SOYBEANS/WHEAT
· November 2016 soybean futures closed at $8.90 ¼ Fri.; one year ago, November 2015 futures settled at $10.19 ¾
· Export Inspections released at 10 AM CST; Soybeans, 24.0 needed; 63.2 last week
· USDA long-term agricultural projections: U.S. 2016 soybean acreage down 1.4% combined with trend yield of 46.7 bpa results in crop size of 3.785 bbu. Total usage pegged at 3.859 bbu with 2016/17 carry-out estimated at 421 mbu
· Export Inspections released at 10 AM CST; Wheat, 16.5 needed; 8.3 last week
· USDA long-term agricultural projections: U.S. 2016 wheat acreage down 2.9% combined with trend yield of 45.9 bpa results in crop size of 2.060 bbu. Total usage pegged at 2.168 bbu with 2016/17 carry-out estimated at 928 mbu
ENERGY
· Lower: CLF16, -$0.80, $34.80; EBF, -$1.21; EBF-CLF, $1.90, -$.42; RBF, 0$.0305; NGF, -$.107; HOF, -$.0189
· A weaker trend was noted in cash ethanol markets on Friday: Chicago down ¾; New York and Tampa off 1 ½; Gulf eased 1 ¼; Dallas declined ½; and LA was 2 ½ lower $1.54 per gallon
· Ethanol RINs firmer: 2014’s gained 1 7/8 to 70 ¼ -71 ½; 2015’s up 1 ¾ to 69 ½-70 ½; & 2016’s added 1 ¾ to 69 ½-70 ½
· The Jan RBOB/Jan Ethanol inverse narrowed in $.0113 on Friday to -$.1735 per gallon
LIVESTOCK/POULTRY    
· Choice boxed beef were declined 58-cents on Friday and are 10–cents below the previous week
· December live cattle futures closed at $121.45 on Friday—down $2.825 compared to the previous Friday
· On Friday, USDA mandatory pork carcass cutout firmed 91-cents and is 6-cents higher vs. last week
· CME Lean Hog Index declined $0.20 to $56.40. December futures down $0.225 and are $0.40 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather