HIGHLIGHTS
· Market Trend: Corn, 1 ¼ Lower; Soybeans, 2-3 Higher; Wheat, 3-5 Lower
· Lower oil prices and Greece’s failure for the 3rd time to elect a president are reasons given for an expected lower start to U.S. equity markets this morning. Asia could be considered a prelude with losses there ranging from -.02% for Shanghai to -1.14% and -1.57% for the Hang Seng and Nikkei markets, respectively. Greece is clearly weighing on early European trade: DAX, -.67% with both the FTSE and CAC 40 off .78%. U.S. pre-markets are headed in the same direction: DOW, -25; NAS, -6.7&B S&P, -5.25. Externals: Energy futures are mixed; the $ Index is 90.400, off .096 and gold is $5.60 to the plus side at $1,187.60
· T-storm Weather: Dry and hot upper-level high pressure suppresses rainfall across Center-West and Southeast Brazil into the weekend. Despite drying, thunderstorms follow from this weekend forward. To the south, heavy thunderstorm clusters focus on South Brazil and Paraguay over the next five days; 2.00" – 5.00" of rain is probable, inducing areas of field flooding. Otherwise, scattered thunderstorms dot varying areas of Argentina over the next few days. A strong cool front breaks ongoing warmth Thursday, after which a cool and dry pattern follows for several days
· Mar Corn Down $.0125 at $4.1150; May Down $.0125 at $4.20. The funds sold 2 K to begin the week
· Jan SB Up $.0275 at $10.4450; March Up $.0275 at $10.5150. Funds: sold 5 K SB; 4 K SBM and bought 4 K SBO
· Mar Wheat Down $.0375 at $6.1175; May Down $.0450 at $6.1450. The bought 1 K on Monday
CORN/SORGHUM     ;
· ATI Research: U.S. corn balance sheet; 14/15 use up 7 mbu from last week, carryout dn 7mbu to 2.185 Bbu
· ATI Research: U.S. sorghum balance sheet; 14/15 use steady vs. last week, carryout unchanged at 23 mbu
· Outstanding U.S. corn export sales as of Dec. 18: 576 mbu vs. 704 mil last year and the 5-year avg. of 474 mil
· Outstanding U.S. sorghum export sales as of Dec. 18: 120 mbu vs. 80 mil last year and the 5-year avg. of 33 mil
· T-storm Weather: Corn areas from Rio Grande do Sul, Brazil westward into northern Santa Fe, Argentina were unseasonably wet with 200%-250% of average rain last 30 days, though this area includes less than 10% of production
SOYBEANS/WHEAT
· ATI Research: Updated U.S. soybean balance sheet; 14/15 use unchanged from last week, steady at 390 mbu
· Outstanding U.S. soybean export sales as of Dec. 18: 543 mbu vs. 655 mil last year and the 5-year avg. of 491 mil
· ATI Research: U.S. HRS wheat balance sheet, 14/15 carryout at 212 mbu; 15/16 carryout is forecast at 227 mbu
· Outstanding U.S. wheat export sales as of Dec. 18: 183 mbu vs. 202 mil last year and the 5-year avg. of 206 mil
· T-storm Weather: A wheat winterkill event is not expected for the U.S. over the next 10-14 days
ENERGY
· Futures are mixed: QCLG15, -$0.07 at $53.5364; QRBG, +$0.0047; QNGG, -$.033; and QHOG, +$.0173
· A mostly weaker tone was seen in cash ethanol markets on Monday: Chicago down 4 ½; New York off 9 ½; Gulf eased 3; Tampa and Dallas slipped 2; but LA was 1 ½ higher at $1.81 ½ per gallon
· RINs were unchanged to higher: 2013’s unch at 70-72; 2014’s up ½ at 71 ½-72 ½; and 2015’s added 3/8 to 71-71 ¾
· Inventories—plenty of gas/shrinking ethanol boosts the premium of January ethanol to RBOB by $.0569 to -$.2062
LIVESTOCK/POULTRY    
· Choice boxed beef values increased $1.15 on Monday and are $6.31 higher vs. a week ago
· 5-Area Weekly Weighted Average Steer price increased $3.44 last week to $161.85/cwt and is up $27.73 vs. last year
· On Monday the USDA pork carcass cutout value decreased 54-cents and is $1.02 lower compared to last week
· CME Lean Hog Index down $1.08 at $78.73. February futures up $0.25 to $81.80 and are $3.07 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather