HIGHLIGHTS
· Market Trend—Corn, 2 to 3 Lower; Soybeans, 4 Higher; Wheat, 2 Lower
· Credit availability questions push Shanghai 2% lower; the Hang Seng slips .3%; Nikkei posts small gain to close near a 5-year high. Europe mostly higher with FTSE up .11%; the DAX is .35% higher but French equities ease slightly. U.S. futures are mixed in what is expected to be a light volume day: Dow, up 11; S&P, off 1 and the Nasdaq, 12 lower. Externals find gold up $1 at $1,195; the energy complex is mostly higher and the March $ Index contract is trading at 80.85, up .062
· T-storm Weather: A powerful and very wet system develops areas of flooding in U.S. SRW wheat areas of the Corn Belt and Delta this weekend as a highly unusually event occurs – rainfall of 2.00” – 4.00” with localized 5.00” amounts cannot be ruled out. Significant rainfall of around 0.75” also breaks drying in southern HRW wheat areas of the Plains, though it turns cattle wet in parts of Kansas, Oklahoma, and Kansas. Notably, a swath of heavy snow forms along the western edge of the system; a swath of 5” – 10” accumulations remains plausible Saturday-Sunday from/near Oklahoma panhandle east-northeast through Wisconsin
· Mar Corn Down $.0250 at $4.28; May Down $.0250 at $4.36. The funds bought 4 K yesterday
· Jan SB Up $.04 at $13.31; Mar SB Up $.0425 at $13.2325. The funds bought 2 K SBO, 1 K SBM and 3 K SBO
· Mar Wheat Down $.02 at $6.0875; May Down $.02 at $6.1550. Funds sold 3Thursday
CORN/SORGHUM
· ATI Research: U.S. corn export sales of 34.4mbu were above the top end of the trade range of 22-30. China is still buying with purchases totaling 4.9mbu. Sorghum sales were 2.8mbu with China buying 4.8 but Brazil cancelling 2.2
· Private exporters Thursday reported to the USDA sales of 127,536 metric tons of corn for delivery to unknown destinations; 111,280 tons is for delivery during 13/14 & 16,256 tons is for delivery during the 14/15 marketing year.
· T-storm Weather: A widespread heat wave is forecast to continue across Argentina for at least one more week; maximums oftentimes reach the mid-90s/low-100s. Not much corn is pollinating yet but the pattern bears watching
· Buenos Aires Grains Exchange pegs Argentina corn planting at 65% complete as of Dec. 19, up from 55% a week ago
SOYBEANS/WHEAT
· ATI Research: U.S. soybean export sales for 13/14 of 15.3mbu were a marketing year low and 64% below the prior 4-week average. Total sales of 18.2 (including 2.9 for 14/15) were well below the trade range of 26-33
· T-storm Weather: Soybeans in northern areas of Center-West & Southeast Brazil benefit via heavy rain thru 7-10 days
· Buenos Aires Grains Exchange pegs Argentina soybean planting at 77% complete as of Dec. 19, up from 66% last week
· New contract lows set Thursday in March 2014 wheat futures: Chi. ($6.10); KC ($6.51 ¾); and Minneapolis ($6.45)
· Export Sales: U.S, wheat export sales of 24.2mbu were strong and well above the trade range of 11-15
· Buenos Aires Grains Exchange pegs Argentina wheat harvest at 54 % complete as of Dec. 19, up from 47% a week ago
ENERGY
· Energy markets—generally higher: QCLG14,-$0.32 at $98.72; QRBG, +$0.0012;QNGG, +$.016 and QHOG, +$.0105
· A firmer trend was seen in cash ethanol markets on Thursday: Chicago and Gulf both gained 9; Dallas and Tampa were up 10 ½; New York climbed a penny; while LA was up 5 ½ to $2.48 per gallon
· RINs were mixed: 2012’s down ¼ to 29-29 ½; 2013’s off ¼ to 29 ½-30; & 2014’s were ¼ higher at 29 ½-30
· The January RBOB/January ethanol spread tightened in 3 ¾ cents to $.8381/gallon
LIVESTOCK/POULTRY    
· Choice boxed beef values eased 47-cents yesterday and have declined $2.26 over the last three days
· Cash cattle lightly traded yesterday at mostly $130, down $1 from last week
· The USDA mandatory pork carcass cutout value fell $2.58 yesterday and has lost $4.75 over the last three days
· The USDA’s Iowa/Minnesota average cash lean hog price fell $1.73 yesterday to $74.97
Sources: Bloomberg, Dow Jones, AP, T-storm Weather