HIGHLIGHTS
· Market Trend: Corn, ½ to 1 Lower; Soybeans, 2-3 Lower; Wheat, 3+ Higher. French wheat, up 2 ½; Corn, down 1 ½
· Analysts expect the U.S. economy to show 2 back-to-back quarters of 4+% GDP growth-4.5% seen for the 3rd. Asia mostly lower on light trading; Europe chugs ahead for the 6th consecutive day, aided by yesterday’s record close for the DOW and S&P. Dec consumer sentiment, personal Y and spending data also out this am. DOW futures up 26; S&P looks to open 2 higher and the NAS is called 5 ½ to the plus side. Energy futures appear to have stabilized momentarily, higher; the $ Index is up .016 at 89.965; gold is 70 cents weaker at $1,179/oz
· T-storm Weather: The remnant of a cool front causes thunderstorms to bring 1.50” – 3.50” of rain to first-crop corn and soybeans in Center-West and Southeast Brazil over the next few days, while very cool and dry weather continue in Argentina and South Brazil. Changes follow from Fridayforward as waves of energy pull warmth northward and then interact with warmth to trigger rounds of thunderstorms in much of Argentina, South Brazil, and Paraguay. Widespread coverage of near- and above-average rainfall results, potentially leading to pockets of excessive rainfall from northeast Argentina into Rio Grande do Sul
· Mar Corn Down $.0050 at $4.1125; May Down $.0050 at $4.1975. Funds began the week buying 3 K
· Jan SB Down $.0275 at $10.3550; March Down $.0225 at $10.4350. Funds: bought 4 K SB; 5 K SBM; even again on SBO
· Mar Up $.0425 at $6.30; May Up $.0225 at $6.3150. The funds sold 4 K on Monday
CORN/SORGHUM   ; ;
· ; December 2015 corn futures traded $4.37 ¾ on Monday, which is the highest price for the contract since July 8
· ATI Research: U.S. corn balance sheet; 14/15 use up 13 mbu from last week, carryout dn 13mbu to 2.192 Bbu
· ATI Research: U.S. sorghum balance sheet; 14/15 use unchanged vs. last week, carryout steady at 23 mbu
· T-storm Weather: At least near-average rainfall of 1.00”-2.00” occurs in most Argentina corn areas through 10 days
· Private consultant: Brazil corn crop est increased 2.0 MMT to 74.0; more double-crop acres than previously expected
SOYBEANS/WHEAT
· ATI Research: Updated U.S. soybean balance sheet; 14/15 use steady from last week, carryout unch at 390 mbu
· T-storm Weather: Widespread rain (1.50”-3.50”) for Center-West/SE Brazil Wed-Thurs to keep soybeans moist to wet
· Private consultant: Argentina soybean planting pegged at 75% vs. 76% last year and 75% average. First soybean harvest in Brazil reported on Dec. 19 in western Mato Grosso (planted onSept. 15)
· ATI Research: U.S. SRW wheat balance sheet, 14/15 carryout at 167 mbu; 15/16 carryout is forecast at 156 mbu
· T-storm Weather: Heavy rainfall of 0.75”-1.50” affects overwintering U.S. SRW wheat throughSaturday
ENERGY
· Futures are firmer: QCLG15, +$0.87 at $56.13; QRBG, +$0.0165; QNGG, +$.040; and QHOG, +$.0092
· A slightly weaker tone was seen in cash ethanol markets on Monday: Chicago off ½; Gulf eased 4 ½; Dallas down 3; New York declined 2 ½; Tampa slipped 1; and LA was ½ lower at $1.76 per gallon
· RINs were firmer: 2013’s gained 1 ¾ to 67-67 ½; 2014’s up 1 ½ to 68-68 ½; and 2015’s added 1 ¾ to 67 ½-68 ½
· The January RBOB/January ethanol spread gained nearly a penny, premium ethanol at -$.0720 per gallon on Monday
LIVESTOCK/POULTRY   ;
·   On Monday, choice boxed beef values increased 79-cents but are still $6.16 lower compared to last week
· 5-Area Weekly Weighted Average Steer price decreased $3.87 last week to $158.51/cwt but is up $28.03 vs. last year
· USDA pork carcass cutout value increased $1.02 on Monday but is $5.18 below a week ago
· CME Lean Hog Index down $1.36 at $82.54. February futures down $1.65 to $80.25 & are $2.29 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather