HIGHLIGHTS
· MARKET TREND—firmer @ 5 am: CH, up $.0125; SF, up $.0350; WH, up $.0250; KWH, up $.0250
· MACRO: Wall Street fading on ideas the DOW will top 20,000 in 2016 as values fall triple digits yesterday. ASIA--: Nikkei, -1.32%; Hang Seng, +0.17%; Shanghai, -0.18%. EUROPE—lower: FTSE, -0.06%; DAX, -0.26%; CAC, -0.11%. Wall STREET: Futures indicate a mixed start: the DOW, -9; S&P, +0.25; NASDAQ, -3.00. EXTERNALS: $ Index, -.474 @102.765; Jan Gold, +$6.60 @ $1,145.80; Feb Crude, -$0.10 @ $53.96
· T-storm Weather: Upper-level high pressure keeps the northeast third of Brazil's growing region drier than normal over the next 7 to 10 days, especially in and adjacent Bahia where little or no rainfall occurs. Conversely, occasional thunderstorms surround this area, resulting in near-normal rainfall across other areas of Brazil. In Argentina, dry and increasingly hot weather occur into the weekend. Some thunderstorms form this weekend when a weak cool front passes, but better rain chances exist next week
· Corn: CH up $.0150 @ $3.4975; CK up $.0150 @ $3.5625. The funds sold 8 K
· SB: SF up $.0350 @ $10.1025; SH, up $.0375 @ $10.2025. Funds—Sold 4 SB, 2 SBM, 5 SBO. Board Crush: $.72, +$.01; LY, $.56
· Wheat: WH up $.0250 @ $4.04; WK up $.0250 @ $4.17. The funds sold 4 KWednesday
CORN/SORGHUM
· Consultant: Dec. was wet in Mato Grosso, Brazil; ample moisture for early safrinha(double-crop) corn germination
· T-storm Weather: Heavy rain of 1.50” to 3.00” re-develops in key corn areas of Argentina over Dec. 31-Jan. 6; best thunderstorm chances are Sat.-Sun., then again Tue.-Thu. (Jan 3-5) when highest coverage/amounts most likely occur
· ATI Research: The USDA’s annual corn feed/residual estimate looks to be on the high side despite the record crop due to (1) a very modest increase in animal numbers; (2) reduced exports of DDGs; and (3) competition from wheat
· EIA report at 9:30 AM CST. Ethanol production last week was 1,036,000 barrels per day & last year’s was 992,000
SOYBEANS/WHEAT
· T-storm Weather: Dryness has unfolded recently across the northeast third of soybeans in Brazil; several locations reported less than 1.50” over the last two weeks, or less than half of normal
· Consultant: Wet weather during early December in Mato Grosso, Brazil prevented timely applications needed to control soybean rust. The drier near-term forecast should allow farmers to catch up on their fungicide applications
· ATI Research: U.S. HRS export sales over the last 4 weeks totaled 28 mbu—the 2ndhighest total since at least 1997
· T-storm Weather: Rain impacts U.S. Delta & Southeast SRW wheat when a system passes Sat.-Mon.; HRW stays dry
ENERGY
· Mixed: CLG17, -$0.10 @ $53.96; EBG, +$0.28; EBG-CLG, $2.52, +$.36; RBG, +$.0128;NGG, -$.064; HOG, +$.0088
· EIA estimates (API): Crude oil, -1.4 (+4.2); Gasoline, +0.4 (-2.8); Distillates, +0.3 (-1.7)
· Cash ethanol markets were mostly weaker on Wednesday: Chicago down 1 7/8; New York gained 2; Gulf off 1 ¾; Tampa and Dallas declined 1 ½; and LA was 1 ½ lower at $1.82 ½ per gallon
· Ethanol RINs higher: 2015’s up ¾ to 85-86 ½; 2016’s gained ¾ to 85-86 ½; and 2017’s added 1 to 85-87
· The Jan RBOB/Jan ethanol spread widened $.0058 yesterday, to $.10560/gallon, premium RBOB
LIVESTOCK/POULTRY  
· Choice boxed beef values soared $3.38 on Wednesday to $201.84, and are $4.59 higher than last week
· February live cattle futures traded to $117.65 on Wednesday, the highest price for the contract since June 9
· USDA mandatory pork carcass declined 50-cents on Wednesday to $81.04, but is still up $1.72 vs. a week ago
· CME Lean Hog Index was $0.19 lower at $57.95. February futures firmed $0.35 and are $7.15 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather