HIGHLIGHTS
· MARKET TREND: CH, Up $.0225; SF, Up $.0375; WH, Up $.0075; KWH, Up $.0125
· Futures point to some recovery after Friday’s debacle on Wall Street. The DOW looks tobe 143 higher; the NAS, +43.25 and the S&P500, +19. Asia began the week mostly higher as Shanghai rose 1.78%; the Kospi ended +.30%; the Hang Seng moved up .17% while the Nikkei retreated .37%. Europe is higher heading into the afternoon session: CAC 40, +.43%; DAX, +.75% and the FTSE, +.75%. Crude continues with its woes, off $.30/barrel; the $ Index is slightly firmer, +.024 @ 98.755 and gold is up $7.10
· T-storm Weather: Heavy rainfall of 2.00” to 4.00” expectedly affected some of the wettest areas of southern Brazil and Paraguay over the weekend, while isolated thunderstorms dotted driest areas of Center-West and Northeast Brazil (well-organized rainfall did not occur). Above-normal rainfall of 3.00” to 6.00” affects southern Brazil over the next 10 days, which is considerably wetter than the ~2.00” that is normal of the period. Rainfall over the next 10 days normally ranges from 2.75” to 3.50” across all of Goias and Mato Grosso (northern Brazil), but we continue to forecast considerably lower amounts of 1.50” to 3.00”
· CH, Up $.0225 @ $3.7775; CK, Up $.0225 @ $3.8275. The funds ended the week buying 4 K
· SF, Up $.0375 @ $8.96; SH, Up $.04 @ $8.9675. Funds: bought 7 K SB; 6 K SBM and 5 K SBO
· WH, Up $.0075 @ $4.8750; WK, Up $.0125 @ $4.9425. Fund buying totaled 3 K on Friday
CORN/SORGHUM   ;    
· ATI Research: U.S. 2015/16 corn reported under loan as of Dec. 18 was 437.8 mbu. This is up 85.0 mbu (24%) from the 352.8 mbu of 2014/15 corn reported under loan at this time last year
· December 2016 corn futures closed at $3.97 on Friday; one year ago, the December 2015 contract settled at $4.35
· Export Inspections released at 10 AM CST; Corn, 39.0 needed; 22.3 last week; Sorghum, 5.3 needed; 5.1 last week
· Commitment of Traders report: Non-Commercial long corn futures only positions decrease 6,370 contracts
SOYBEANS/WHEAT
· ATI Research: U.S. 2015/16 soybeans reported under loan as of Dec. 18 was 86.0 mbu. This is up 26.9 mbu (46%) from the 59.1 mbu of 2014/15 soybeans reported under loan at this time last year
· Consultant: Concern is increasing regarding soybean conditions in Brazil; too wet in south, increased drying in north
· November 2016 soybean futures closed at $9.07 ¼ Fri.; one year ago, November 2015 futures settled at $10.17 ½
· Export Inspections released at 10 AM CST; Soybeans, 23.3 needed; 49.4 last week
· Commitment of Traders report: Non-Commercial long soybean futures only positions decrease 9,512 contracts
· Export Inspections released at 10 AM CST; Wheat, 16.5 needed; 16.0 last week
· Commitment of Traders report: Non-Commercial long CBT wheat futures only positions increase 2,399 contracts
ENERGY
· Little Weaker: CLF16, -$.30, $34.43; EBF, -$0.34; EBH-CLH, $.11, -$.05; RBF, -$.0296; NGF, +$.048; HOF, -$.0096
· A mostly weaker tone was noted in cash ethanol markets on Friday: Chicago down 1 ½; New York and Gulf eased ¼; Tampa off ¾; Dallas declined 1; but LA was 1 ½ higher $1.48 ½ per gallon
· Ethanol RINs were higher: 2014’s added 2 ½ to 67-70; 2015’s firmed 2 ¼ to 66-70; & 2016’s up 2 ¼ to 66-70
· The Jan RBOB/Jan Ethanol inverse narrowed nearly $.02 to -$.1244 per gallon on Friday
LIVESTOCK/POULTRY    
· Choice boxed beef declined fell $1.62 on Fri., are down $8.36 vs. a week ago & the lowest of calendar year 2015
· Cattle on Feed: Dec 1 on feed, 99.8% (100.9% avg. est); Nov placed, 89.2% (95.9%); Nov Marketed, 103.9% (103.4%)
· On Friday, the USDA mandatory pork carcass cutout declined $1.27 and at $71.24, is at the lowest level since April 29
· CME Lean Hog Index was $0.36 lower at $55.21. February futures up $0.85 and are $1.415 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather