HIGHLIGHTS

·         Market Trend:  Corn, 1 Lower; Soybeans, 1-3 Lower; Wheat, 1 Lower

·         China’s December PMI (manufacturing index) fell from 50.0 LM to 49.6, 1^st such contraction in 7 months.  Still, Shanghai gained 2.15%; the Hang Seng closed up .44% while the Nikkei lost 1.57. Thin trading was the norm ahead of New Year’s.  Germany wisely took the day off; the FTSE crept up .09% and the CAC 40, up .66% ahead of a 1 PM close.  U.S. futures auger for a positive start to the day:  DOW, +12; S&P500, +2.75 and the NAS, +3.50. Energy futures remain in disfavor; the $ Index is .029 lower at 90.25 and gold is trading $3.90 lower at $1,196.50

·         T-storm Weather: A large and strong cool front triggers thunderstorms as it moves from Argentina through Brazil and Paraguay over the next five days; heavy to excessive rainfall results in parts of South Brazil, while drying breaks in parts of Southeast Brazil.   Temperatures turn cool as the front passes to break ongoing warmth.  A milder pattern follows next week, but occurs in advance of another storm system (or two) that keep most growing areas moist – and potentially parts of South Brazil and Paraguay too moist

·         Mar Corn Down $.01 at $4.055; May Down $.0075 at $4.1425.  The funds sold 6 on Tuesday

·         Jan SB Down $.0175 at $10.36; March Down $.0275 at $10.4125.  Funds: sold 5 K SB; 5 K SBM and bought 3 K SBO

·         Mar Wheat Down $.0125 at $6.0075; May Down $.0125 at $6.0475.  The funds sold a total of 6 K yesterday

 

CORN/SORGHUM                             ​                        &​nbsp;                        <​wbr>         

·       &​nbsp; March 2015 corn futures closed lower for second consecutive day Tues.—the first time that’s occurred since Nov. 24

·         T-storm Weather: An estimated 20% of first-crop corn in Brazil and 10% of corn in Argentina are significantly drier or wetter than ideal

·         Private crop consultant: Argentina corn planting, 68%, 75% last year, 82% avg.; some concern re. drying  in south

·         Ethanol margins: $0.76 per gallon vs. $0.63 a week ago and unchanged from last year.  EIA report at 9:30 AM CST

SOYBEANS/WHEAT

·         Private crop consultant: Brazil soybean crop estimate increased 1.0 MMT to 94.0 due to rainfall in southern areas

·         T-storm Weather: An estimated 10% of first-crop soybeans in Brazil and 10% of soybeans in Argentina are significantly drier or wetter than ideal

·         ATI Research: U.S. wheat export demand remains slow; sales in latest week were the lowest since the end of October

·         T-storm Weather: Bouts of intense cold in U.S. Plains next 2 weeks focus on snow-covered areas, preventing winterkill

ENERGY

·         $50 oil?  Futures are lower:  QCLG15, -$0.92 at $53.20; QRBG, -$0.0323; QNGG, -$.029; andQHOG, -$.0333

·         EIA estimates:  crude, -0.6 (API: +0.8); Gasoline, +1.6 (+1.7); Distillates, +1.4 (+0.3)

·         Cash ethanol markets were lower on Tuesday with some significant declines noted: Chicago off 4; New York slid 16; Gulf and Tampa down 1; Dallas eased 2; and LA was 4 lower at $1.77 ½ per gallon

·         RINs were firmer: 2013’s up 1 ¼ at 71 ½-73; 2014’s gained ¾ to 72-73 ½; and 2015’s were 7/8 higher at 71 ½-73

·         The January RBOB/Ethanol inverse eased $.0209 to -$.1853/gallon with the premium to ethanol

LIVESTOCK/POULTRY                         &n​bsp;                       &nb​sp;         

&mid​dot;         On Tuesday, choice boxed beef values were up $1.53 and are $4.60 higher vs. a week ago

·         Choice boxed beef cutout values have increased $8.63 the past six trading days to the highest level since Dec. 11

·         USDA pork carcass cutout value declined 36-cents Tues., is 13-cents below last week & at lowest level since Jan. 22

·         CME Lean Hog Index down 17-cents at $78.56.  February futures down $0.625 to $81.175 but $2.615 above the index

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