HIGHLIGHTS
· Market Trend: Corn, ¼ to ½ Lower; Soybeans, Down 5; Wheat, Down 4-8
· China’s exports fell in November, leading to ideas for more stimulus efforts; Shanghai closes up 2.86%. More evidence Japan’s economy is in recession, Nikkei nominally higher; Hang Seng closes up .19%. Europe is decidedly lower this morning—DAX, off .47%; CAC 40, down .69% and the FTSE, .77% lower. Futures have U.S. markets lower—DOW, off 47; NAS, down 13 and the S&P, 5 ¾ lower. Gold is up $5.10 at $1,195.20; energy futures are lower, again and the $ Index is up .045 to 89.62
· T-storm Weather: The jet stream aligns in a position that prevents dry and hot periods from lasting in South America through 10 days. More specifically, numerous cool fronts dissipate across Brazil and Paraguay through the period, resulting in near- and above-average rainfall – especially across key first-crop areas of Center-West and Southeast Brazil. Thunderstorms also occur this week in in central and northern areas of Argentina. However, thunderstorms generally stay north of Buenos Aires and La Pampa this week
· Dec Corn Down $.0025 at $3.8125; March Down $.0050 at $3.9450. Deliveries: 1. Funds again bought 6 K on Friday
· Jan SB Down $.05 at $10.31; March Down $.0550 at $10.3650. Dely: 244 SBO. Funds: bought 10 K SB; 7K SBM, 3 K SBO
· Dec Wheat Down $.0825 at $6.0075; March Down $.04 at $5.90. Dely: 1 SRW, 40 KW. The funds bought 2 K Friday
CORN/SORGHUM     ;
· Dec. 10 USDA WASDE report: Avg. trade est. 14/15 U.S. corn ending stocks, 2.018 Bbu (vs. USDA’s Nov est of 2.008)
· T-storm Weather: Portions of Center-West/Southeast Brazil and Paraguay were wetter than ideal over the last 30 days, but most corn areas are favorably moist for growth and development
· Export Inspections released at 10 AM CST; Corn, 35.7 needed; 29.3 last week. Milo—3.8 needed; 6.4 last week
· Commitment of Traders report: Non-Commercial long corn futures only positions decrease 3,987 contracts
SOYBEANS/WHEAT
· Dec. 10 USDA WASDE report: Avg. trade est. 14/15 U.S. soybean ending stocks, 431 mbu (vs. USDA’s Nov est of 450)
· Export Inspection released at 10 AM CDT; Soybeans, 24.0 needed; 67.9 last week
· Commitment of Traders report: Non-Commercial long soybean futures only positions decrease 12,349 contracts
· Dec. 10 USDA WASDE report: Avg. trade est. 14/15 U.S. all wheat ending stocks, 651 mbu (vs. USDA’s Nov est of 644)
· Export Inspections released at 10 AM CST; Wheat, 18.4 needed; 10.0 last week
· Commitment of Traders: Non-Commercial long CBT wheat futures only positions decrease 1,271 contracts
ENERGY
· Futures are weaker: QCLF14, -$1.30 at $64.54; QRBF, -$0.0353; QNGF, -$.061; and QHOF, -$.0331
· Cash ethanol markets were weaker on Friday: Chicago declined 3 3/8; Gulf down 5 ½; Dallas eased 2; Tampa off 1 ½; New York slid 10 ½; and LA was 2 lower at $2.52 per gallon
· Weaker trend in RINs: 2013’s off 1 3/8 to 56 ½-58 ¼; 2014’s down 1 to 57 ½-59 ¼; and 2015’s eased 1 to 57 ½-59 ¼
· January RBOB/January ethanol spread widened 2+ cents to $.0434 per gallon on Friday
LIVESTOCK/POULTRY    
· Choice boxed beef values declined $1.88 on Friday, are down $4.86 vs. last week & at the lowest level since Nov. 14
· December live cattle futures closed at $164.45 on Friday—the lowest settlement price for the contract since Oct. 15
· USDA pork carcass cutout value increased 45-cents on Friday but are 2-cents lower compared to a week ago
· CME Lean Hog Index down $0.20 at $88.52. December futures down $1.025 to $86.60 & are $1.92 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather