HIGHLIGHTS

·         MARKET TREND:  CH, Up $.0125;  SH, Up $.0450; WH, Up $.01;  KWH, Down $.0150.

·         Chinese banking liquidity injection apparently outweights poorest monthly mfg activity report in over 4 years as Shanghai closes up 1.7%; Hang Seng gains 1.6% and the Nikkei was .37% higher.  Europe is doing well this morning with both the FTSE and CAC 40 up .7+% and the DAX, 1.7% higher.  Jim Cramer says “angry politics” are hurting the market.  Warren Buffet seems inclined to agree. Pre-markets though, look positive:  DOW, +134; S&P, +17 ¼; NAS, +37 ¼. $ Index, up .096; gold, +$6.40; April WTI, +$.41

·         T-storm Weather: Dissipating cool fronts trigger rain across Brazil over the next 10 to 14 days, especially in central and northern areas (except Bahia); widespread coverage of near- and above-normal rainfall occurs, most likely slowing harvesting and planting in northern areas with time.  In the U.S., an unusually warm period continues over the next 10 to 14 days – including most of the Plains this week, and a particularly large area next week as a large system in the West pumps warm and muggy air far to the north, potentially leading to record-setting maximums in the 70s with isolated 80s across much of the Corn Belt early next week. Eventually, the responsible system moves eastward, leading to a high chance for significant rain across much of the central U.S

·         CH, Up $.0125 @ $3.5475;  CK, Up $.0125 @ $3.5825.  The funds sold 3 K.   0 deliveries

·         SH, Up $.0450 @ $8.5750; SK, Up $.04 @ $8.5  Funds: sold 2 K SB, 4 SBO, bot 2 SBM.  Del’y:  227 SB, 110 SBM, 1,234 SBO

·         WH, Up $.01 @ $4.46; WK, Down $.0075 @ $4.5275.  The funds bought 2 K.  Del’y:  4 SRW, 6 HRW

CORN/SORGHUM                        ​                        &​nbsp;                        &​nbsp;                       &n​bsp;                       &nb​sp;               

·&n​bsp;        The final 2016 base crop insurance price average of December 2016 corn futures is $3.8593

·         ATI Research: U.S. corn balance sheet; 15/16 carryout forecast at 1.850 bbu; 16/17 carry-out projected at 1.998 bbu

·         ATI Research: U.S. sorghum balance sheet; 15/16 carryout forecast at 40 mbu; 16/17 carry-out also pegged at 40 mbu

·         Consultant: Farmers in Brazil are actively planting safrinha (double crop) corn as quickly as possible.  If they can plant the corn within the next week, there is still the possibility of adequate rain during the critical grain filling period

·         Export inspections: Year-to-date U.S. corn exports of 581 mbu down 21% vs. last year (USDA forecasting 11% decline)

SOYBEANS/WHEAT

·         The final 2016 base crop insurance price average of November 2016 soybean futures is $8.85

·         ATI Research: U.S. soybean balance sheet; 15/16 carryout pegged at 469 mbu; 16/17 carry-out estimated at 528 mbu

·         Consultant: Soybean production estimate for Brazil has been increased 1.0 MMT to a record 100.0 million

·         Export inspections: Year-to-date U.S. soybean exports of 1414 mbu down 8% v. last year (USDA forecasting 8% drop)

·         T-storm Weather: Highest rain coverage/totals next week across U.S. wheat most likely in eastern Corn Belt & Delta

·         Export inspections: Year-to-date U.S. wheat exports of 544 mbu down 13% from last year (USDA forecasting 9% drop)

ENERGY

·         Mixed:  CLJ16, +$0.41, $34.16; EBK, +$0.38; EBJ-CLJ, +$1.74, +$.39; RBJ, -$.0024; NGJ, -0.009;  HOJ +$.0149

·         Cash ethanol markets were unchanged to slightly weaker on Monday: Chicago down 7/8; New York steady; Gulf off ½;  Dallas eased 1 ½; Tampa steady; and LA was steady at $1.51 ½ per gallon

·         Ethanol RINs declined: 2014’s declined ¾ to 74 ¼-74 ¾; 2015’s down 7/8 to 74-74 ¾; and 2016’s off 1 at 74-75

·         The March RBOB/March Ethanol inverse remains volatile, giving up nearly 4 ¼ cents and settling at  -$.3383/gal   

 LIVESTOCK/POULTRY                  &​nbsp;                       &n​bsp;               

·         Choice boxed beef values declined 51-cents on Monday, but at $217.16 are still up $3.88 compared to a week ago

·         5-Area Weekly Weighted Average Steer price up $2.39 last week to $136.02/cwt but is $22.42 lower vs. last year

·         USDA mandatory pork carcass cutout firmed 98-cents on Monday, but at $74.80 is still 70-cents vs. the prior week 

·         CME Lean Hog Index was $0.16 higher at $66.76.  April futures were down $0.875 but are still $3.215 above the index

             Sources: Bloomberg, Dow Jones, AP, T-storm Weather