HIGHLIGHTS
· Market Trend: Corn, 2 Lower; Soybeans, ¼ to ½ Lower; Wheat, 4-5 Lower.
· China takes bold action, Central Bank there cuts 1-year benchmark lending rate 40 basis points to 5.6%, the 1st such step in more than 2 years. Move boosts equity markets around the globe. DOW futures 98 higher; S&P500 poised to open up 11 points; NAS suggests a 26 point gain on the opening. Shanghai closes up 1.4%; the Nikkei went into the weekend .33% higher and the Hang Seng, up .37%. Enthusiasm carries over to Europe where the DAX has rocketed 1.63% higher; the CAC 40 is up a healthy 1.49% and the FTSE, +.71%. Impressive Philly Fed Index of 40.8 for Nov, more than 2 X expectations. Energy futures move higher; gold gains $4.80 and the $ Index surges more than a ½ point to 88.38. Happy Friday!
· T-storm Weather: A stormy pattern continues for at least one consecutive week as the jet stream aligns favorable for several waves of energy and cool fronts to trigger occasional thunderstorm clusters across key first-crop corn and soybean areas of Brazil, Paraguay, and northern Argentina. Widespread rainfall of 1.75” - 3.50” is probable over the next week with locally higher amounts most likely within South Brazil and Paraguay; around 1.50” is average for the period. To the south, mainly dry weather improves conditions for planting (and wheat harvesting) across key areas of central and southern Argentina through Sunday
· Dec Corn Down $.02 at $3.7150; March Down $.02 at $3.8425. The funds bought 8 K on Thursday
, helping boost CZ a dime
· Jan SB Down $.0025 at $10.2025; Mar Down $.0050 at $10.2750. Funds: bought 7 K SB, 5 K SBM and 2 K SBO
· Dec Wheat Down $.05 at $5.4225; March Down $.04 at $5.4850. The funds bought back the 6 K they liquidated Wednesday
CORN/SORGHUM       </p>
· Outstanding U.S. corn export sales as of Nov. 13: 502 mbu vs. 710 mil last year and the 5-year avg. of 484 mil
· Outstanding U.S. sorghum export sales as of Nov. 13: 91 mbu vs. 45 mil last year and the 5-year avg. of 24 mil
· T-storm Weather: Rain amounts of 0.67”-1.33” affect central and southern Argentina Nov. 24-25 but at least several days of drying follow to prevent a significant slowing of corn planting
· December 2014 corn futures closed at $3.73 ¼ Thursday; one year ago, the December 2013 corn contract was $4.17
SOYBEANS/WHEAT
· Outstanding U.S. soybean export sales as of Nov. 13: 789 mbu vs. 802 mil last year and the 5-year avg. of 610 mil
· T-storm Weather: Upcoming rain for key S American soybeans prevents dryness from being an issue into early Dec.
· January 2015 soybean futures closed at $10.20 ½ Thurs.; one year ago, the Jan. 2014 soybean contract was $12.73 ¾
· Outstanding U.S. wheat export sales as of Nov. 13: 188 mbu vs. 191 mil last year and the 5-year avg. of 193 mil
· NWS U.S. Seasonal Drought Outlook: Drought to persist or intensify for portion of Southern Plains through February
ENERGY
· Futures are mostly higher: QCLZ14, +$1.48 at $77.28; QRBZ, +$0.0487; QNGZ, -$.112; andQHOZ, +$.0495
· On Thursday, a mixed tone prevailed in cash ethanol markets: Chicago down 1 ½; Gulf off 2; Dallas slipped 4 ½; Tampa eased 3; New York soared 18 ½; and LA was a penny higher at $2.59 ½ per gallon
· RINs were mixed: 2013’s up 1 ½ at 56 ½-57 ½; 2014’s steady at 57-58; and 2015’s down 1/8 to 56 ½-57 ½
· Dec RBOB/Dec Ethanol spread eases $.0892 per gallon to $.0796 on Thursday. Further weakness this morning
LIVESTOCK/POULTRY    
· Choice boxed beef values were 60-cents higher Thursday, up $4.04 v. last week and the highest since Aug. 15
· USDA Cattle on Feed report estimates: On feed Nov.1, 99.8% of 2013; placed in Oct., 95.7%; marketed in Oct., 92.6%
· USDA pork carcass cutout value increased 35-cents on Thursday but is $2.69 lower compared to a week ago
· CME Lean Hog Index up $0.20 to $88.95. December futures down $1.00 to $90.775 and are $1.825 above the index
· Broiler egg set last week was up 1.7% from last year and average set over the last four weeks is 2.0% above last year
Sources: Bloomberg, Dow Jones, AP, T-storm Weather