HIGHLIGHTS
· MARKET TREND: CH, Up $.0225; SH, Up $.0475; WH, Up $.0225; KWH, Up $.0250
· A modest rebound in basic commodity prices & a weaker $ lifted overseas commodity markets. In Asia, Shanghai closed 1.55% higher; the Hang Seng posted a 1% gain but the Nikkei bucked the trend, losing .85% overnight. Europe is trading in positive territory as well: CAC 40, +.5%; DAX, +.56%; FTSE, +1.4%. Wall Street looks positive: DOW futures, +52; S&P, +5 ¼; NAS, +14.50. Externals: $ Index, off ½ point; Gold, up $6.10 @ $1,147.30; Mar WTI, +$.05
· T-storm Weather: Scattered thunderstorms affect Argentina Friday-Saturday but more-so within Sunday-Tuesday, developing 1.00" to 2.00" of rain across a large area; wettest in wettest areas of / near southern Cordoba, and driest in drier areas to the east. The setup causes occasional thunderstorms to continue in southern Brazil and Paraguay, while rainfall likely stays below-normal in northern areas of Brazil where harvesting and planting occur. An uptick in rainfall is likely in northern areas of Brazil from late next week forward (Feb. 12-16) as upper-level high pressure diminishes, allowing cool fronts to sweep further to the north and trigger thunderstorms
· CH, Up $.0225 @ $3.7325; CK, Up $.02 @ $3.78. The funds sold 2 K at mid-week
· SH, Up $.0475 @ $8.8675; SK, Up $.0475 @ $8.8450. The funds sold 5 K SB, a equal amount of SBM and bought 2 K SBO
· WH, Up $.0225 @ $4.8225; WK, Up $.02 @ $4.8575. Fund buying amounted to 2 K on Wednesday
CORN/SORGHUM       ;
· Export Sales to be released at 7:30 AM CST. Trade expects 31-39 mbu for 15/16 corn
· ATI Research: Brazil corn exports during January totaled 177 mbu, which is 40% greater than January of 2015. Shipments since Sept. 1 total 1.012 bbu and are nearly 400 mbu ahead of the 14/15 export pace
· T-storm Weather: Limited rainfall occurs in northern areas of Brazil into late next week, aiding double-crop corn planting as most receive less than 1.00” of rain (less than half or normal)
· Ethanol grind: 959,000 barrels/day for week end Jan. 29—down 0.2% vs. last week but 1.2% higher vs. last year
SOYBEANS/WHEAT
· Export Sales report. Trade expects 15-22 mbu for 15/16 soybeans; soymeal, 100-300 K MT; and soyoil, 5-25 K MT
· ATI Research: Brazil soybean exports during January totaled 27 mbu, which is considerably greater than only 3 million than January of 2015. Shipments since Sept. 1 total 327 mbu and are 235 mbu ahead of the 14/15 export pace
· Export Sales report. Trade expects 7-15 mbu for 15/16 all wheat
· T-storm Weather: Heavy rain and snow over the last 2 days significantly increased soil moisture (from future melting) across the U.S. central Plains, but the southern Plains would benefit from additional rainfall leading into spring
ENERGY
· Mixed: CLH16, +$0.05, $32.34; EBJ, -$0.34; EBJ-CLH, +$2.39, -$.37; RBH, +.0192; NGH, -$.032; HOH, -$.0029
· A mixed trend was evident in cash ethanol markets on Wednesday: Chicago down 1 ½; New York and Gulf off 1 5/8; Tampa steady; Dallas added 1; and LA was 1 ½ higher at $1.53 ½ per gallon
· Ethanol RINs firmed: 2014’s up 1 3/8 to 69-71 ½; 2015’s added 1 3/8 to 69-71; and 2016’s climbed 1 3/8 to 69-71
· The Feb RBOB/Feb Ethanol spread slipped $.0199 to -$.3953 per gallon yesterday
LIVESTOCK/POULTRY ;
· ; On Wednesday, choice boxed beef values up 10-cents, and at $222.57 are $1.24 higher compared to a week ago
· Cash cattle trading Wednesday remained very slow due to the early week storm; asking prices in the South are $142
· The USDA mandatory pork carcass cutout was 11-cents higher on Wednesday, and at $77.13 is up $1.71 vs. last week
· CME Lean Hog Index was $0.79 higher at $63.30. February futures were $0.35 higher and are $1.25 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather