HIGHLIGHTS
· MARKET TREND: CH, Up $.0150; SH, Up $.0575; WH, Up $.0375; KWH, Up $.0375
· Global equity markets slightly higher—await U.S. jobs report with a 190-200 K increase in Feb non-farm payrolls expected and the unemployment rate to hold steady at 4.9% . Asia: Nikkei, +.32%; Shanghai, +.50%; Hang Seng, +1.18%. Mid-day Europe: CAC 40, +.62%; FTSE, +.75%; DAX, +.77%. U.S. Pre-markets: DOW futures, +26; NAS, +11; S&P, +2.25. Externals: Gold continues to work higher, up $14.60 @ $1,272; the $ Index is a tad weaker, -.076 @ 97.525 and April crude is up $.13 @ $34.70/bl
· Weather: Friday and Saturday, Brazil can expect 70% coverage up to 1 ¼” from northern Mato Grosso do Sul and Mato Grosso to Minas Gerais with up to 0.70”elsewhere. Paraguay to northern Parana will be mostly dry. Sunday through Tuesday will bring 65% coverage ½ to 1 ¾” in most areas from Mato Grosso to western Bahia and western/southern Minas Gerais with up to 0.50”. Argentina is expected to 20% daily coverage of up to 3/10’s through Monday with 40% coverage of up ½ “ Tuesday.
· CH, Up $.0150 @ $3.5525; CK, Up $.0125 @ $3.5775 The funds bought 2 K. 19 Corn deliveries; 96 etoh
· SH, Up $.0575 @ $8.62; SK, Up $.0575 @ $8.6950. Funds: bought 2 SB, even SBM; bot 2 K SBO. Del’y: 526 SB, 70 SBM, 336 SBO
· WH, Up $.0375 @ $4.57; WK, Up $.0375@ $4.6350. The funds bought 8 K. Del’y: 275 SRW, 0 HRW
CORN/SORGHUM     ;
· Corn Export Sales of 43.2 top trade expectations but Far East unshipped book remains anemic, down 55% from 14/15 and 2nd lowest mid-year total since 1987
· December 2016 corn futures holds above contract low of $3.7325 and settles at $3.75 ½
· Trade said to be looking for a 25 mbu cut in the U.S. corn export forecast next week
· Feed demand under-estimated? Record live cattle weights so far TY at 1,387 lbs, up 2.3% year to year
· Weekly poultry hatchery report shows broiler eggs set unchanged from a year ago; chick placements up 1%
SOYBEANS/WHEAT
· Soybean Export Sales mid-range at 16.2; 30% decline in outstanding sales a concern in reaching USDA export forecast
· Wheat export sales routine at 12.7; outstanding sales are 145 million, down 40 million from 14/15
· Market somewhat concerned over recent Southern U.S. SRW weather forecasts—up to 6” of rain Delta/Mid-Miss
· Dry weather in the Plains fuels higher HRW futures
· SBM Activity found sales of 132 K near the low end of expectations; SBM exports were a 6-week high at 262 K
· Trade chatter has the USDA cutting crush by 10 mbu next week—weaker meal export prospects
ENERGY
· Mixed: CLJ16, +$0.13, $34.70; EBK, +$0.16; EBK-CLK, +$0.75, +$.10;RBJ, -$.0038; NGJ, -0.011; HOJ, +$.0033
· The cash ethanol market again worked lower: Tampa was off 2 ½ cents; Dallas eased 2; the Gulf gave up 1 ½ to $1.42/gal; New York backed off ¾ of a cent to $1.42; LA edged ¼ lower and Chicago was off 1 ¼ to $1.42
· Ethanol RINs lower: 2014’s down 1 3/8’s to 71 ¼ -71 ¾; both 2015’s and 2016’s were off 1 5/8’s , 71-71 ½ & 71-72
· The April RBOB/March Ethanol inverse widened slightly, up $.019 to -$.04580/gal. Trading -$.0756 this am
LIVESTOCK/POULTRY <wbr>
· ; On Thursday, choice boxed beef values were $0.30 lower, but at $21975 are up $0.99 compared to a week ago
· Cash cattle markets remain quiet with few bids and asking prices at $140 to $142 in the South and $220 in the North
· USDA mandatory pork carcass cutout increased 39-cents Thursday and at $75.43 is up $1.52 vs. last week
· CME Lean Hog Index was $0.14 higher at $66.91. April futures gained $0.30 and are $3.44 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather