HIGHLIGHTS
· Market Trend: Corn, 3 Higher; Soybeans, 1-2 higher; Wheat, 4-5 Higher
· Despite doubts regarding China’s ability to sustain a 7% economic growth rate, Asian markets closed mostly higher with Shanghai up 1.45%; the Hang Seng rose 1.12% with only the Nikkei closing slightly lower, off .14%. Europe is moving past the mid-day hour with a positive showing: DAX, +.67%; FTSE, +.22% and the CAC 40, +.03%, aided by ECB bond buying. Wall Street is higher ahead of the Oct durable goods report/weekly initial jobless claims as yesterday’s upward GDP revision countered weakening consumer confidence: DOW, +15; S&P futures, +2.25; NAS, +7. Gold, steady at $1,197; $ Index, +.05 @ 88.205; energy futures--mixed
· T-storm Weather: Two cool fronts trigger thunderstorm clusters across large swaths of Argentina, Brazil, and Paraguay over the next 7-10 days. High coverage of above-average rainfall focuses on Center-West and Southeast Brazil as each front dissipates; 2.50” - 5.00” and locally higher amounts occur, vs. an average of around 3.00”. Otherwise, heavy thunderstorms hold until Saturday-Sundayin Argentina, thereby slowing soybean planting and wheat harvesting. At least five consecutive days of drying follow in Argentina, but it is unclear whether this will mark the start of a drier pattern or is only a short-term break.
· Dec Corn Up $.03 at $3.7725; March Up $.0275 at $3.90. The funds bought 8 K on Tuesday
· Jan SB Up $.02 at $10.53; March Up $.02 at $10.5825. Funds: bought 8 K SB, 8 K SBM and 3 K SBO
· Dec Wheat Up $.0425 at $5.5575; March Up $.0425 at $5.62. The funds bought 6 K yesterday
CORN/SORGHUM   ;
· ATI Research: U.S. Gulf corn price continues to be some $5-6 per MT above the next cheapest origin
· T-storm Weather: Adequate to favorable soil moisture exists for first-crop corn development across large swaths of Argentina, Brazil and Paraguay given that most areas were wetter than usual over the last 30 days
· Private crop consultant: Corn planted in September in Argentina starting to pollinate; generally rated good/very good
· Ethanol margins: $1.04 per gallon vs. $0.92 last week but below $1.25 last year. EIA report at9:30 AM CST
SOYBEANS/WHEAT
· ATI Research: Last year saw U.S. soybean exports during the up-coming month average of 73 million bushels per week. Expect a similar pace this year during the same time frame
· Private crop consultant: Argentina soy being planted under good conditions; emerging crop rated good/very good
· ATI Research: U.S. hard red winter exports forecast at 310 mbu due to ongoing sluggish sales and shipment pace
· KCBT December 2014 wheat traded closed at $6.19 ¼ on Tuesday, which is the highest price since Sept. 10, 2014
ENERGY
· Futures are mixed with QCLF14, -$0.102 at $74.00; QRBF, +$0.0035; QNGF, -$.022; andQHOF, +$.0039
· EIA estimates: crude, -0.1 (API: +2.8); Gasoline, +1.1 (+0.0); Distillates, -0.9 (-1.3)
· Cash ethanol markets maintained a mixed tone on Tuesday: Chicago slid 13; Gulf unchanged; Dallas added 4; Tampa gained 5 ½; New York eased 2; and LA was 5 ½ higher at $2.71 per gallon
· Mixed trend in RINs: 2013’s down 3/8 to 49 ½-53 ¼; 2014’s up 2 5/8 to 53-56; and 2015’s climbed 2 ½ to 53-56
· December ethanol’s premium to RBOB slipped $.0204 to $.0260/gallon on ideas of weaker demand ahead
LIVESTOCK/POULTRY  
· Choice boxed beef values were up $1.17 on Tuesday, are $2.58 above last week and are the highest since Aug. 13
· Cash cattle trading was quiet on Tuesday with asking prices as high as $175 in the South
· USDA pork carcass cutout value decreased $1.34 on Tues., is down $1.92 v. last week & at lowest level since Feb. 11
· CME Lean Hog Index down $0.04 to $88.74. December futures down $0.375 to $90.95 & are $2.21 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather