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HIGHLIGHTS
· MARKET TREND: CORN: CZ, Down $.02; SOYBEANS: SX, Up $.0325; WHEAT: WZ, Down $.0350; KWZ: Down $.0325
· Global markets move higher, no definitive reasons offered although some are suggesting concerns that the Chinese economy is slowing were overdone. Shanghai soared 4.3%; the Hang Seng sprung 2.2% higher and the Nikkei gained 1.3%. Europe is mostly higher as it nears the half-way point: CAC 40, +.9%; FTSE, +1.2% while VW’s woes weigh on the DAX, off .16%. U.S. futures point to a positive start: DOW, +25; S&P, +1.75 and the NAS, +9 ¼. Outside markets: $ Index, +.272 at 97.51; gold is $2.0 higher at $1,116.20 and energies are higher with Dec WTI up 8-9 cents per barrel
· T-storm Weather: Key areas of Brazil will be divided by hot & dry upper-level high pressure to the north, & cool and dry surface-level high pressure to the south the next 7-10 days. Waves of energy move between each feature, resulting in occasional thunderstorms across southern Brazil & Paraguay. Rain coverage & amounts will be limited with northward extent, leaving first-crop area of Bahia & Minas Gerais mainly dry through the period, & gradually expanding to include parts of Goias & Mato Grosso
· Dec Corn Down $.02 at $3.7850; Mar Down $.0175 at $3.87. Funds followed up Tuesday by selling 4 K
· Nov SB Up $.0325 at $8.8175; Jan Up $.0425 at $8.8325. Fund activity: even SB; sold 1 K SBM and bot 2 K SBO. Del’y: 135 SB
· Dec Wheat Down $.0350 at $5.13; Mar Down $.0325 at $5.1625. The funds bought 4 K yesterday
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CORN/SORGHUM   ;    
· ATI Research: U.S. corn exports during the remainder of November are forecast at 18-19 mbu per week, which is well down from 34+ over the same period last year
· Crop consultant: The full-season corn that has been planted in Brazil is doing fine, but only represents approx. one-third of total Brazilian production. The remainder will be double-crop (safrinha) acreage to be planted in Jan-March
· T-storm Weather: Much of Argentina and Brazil were slightly drier than normal over the last 30 days, but most of the same areas were seasonably-wet over the last two weeks
· Ethanol margins: $0.27 per gallon--up vs. $0.21 last week but below $0.68 last year. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· ATI Research: U.S. soybean exports went from an avg. of 77 mbu per week from mid to late-October last year to 96 per week through the end of November. We expect 90+ through the remainder of November this year
· Crop consultant: The delayed start to soybean planting in Brazil might take off the “top end” of yields
· ATI Research: U.S. all wheat exports averaged 11 mbu per week in November 2014; likely to be near that this year
· Ukraine Ag Attaché boosts wheat production forecast to largest level since the country gained independence in 1990
ENERGY
· Higher: CLZ15, +$0.08, $47.98; EBZ,+$0.165; EBZ-CLZ, $2.70, +$.06; RBZ, +$.0132; NGZ, +$.024; HOZ, +$.0080
· EIA estimates: crude, +2.5 (API: +2.8); Gasoline, -1.1 (-3.0); Distillates, -1.8 (-0.2)
· A weaker trend was evident in cash ethanol markets on Tuesday: Chicago down 2 3/8; New York off 4; Gulf eased 3; Tampa slipped ½; Dallas fell 2; and LA was 1 ½ lower at $1.72 per gallon
· Ethanol RINs were firmer: 2014’s climbed 1 to 41-42; 2015’s up ¾ at 40-41 ½; and 2016’s gained 7/8 to 41-41 ½
· The Dec RBOB/Nov Ethanol inverse narrowed sharply, down $.0912 to -$.1145/gallon yesterday
LIVESTOCK/POULTRY ; ;
· Choice boxed beef values fell $1.21 Tues.—largest one-day decline since Oct. 5—but are up 45-cents v. a week ago
· December live cattle futures closed at $140.225 Tuesday—the lowest settlement price for the contract since Oct. 16
· On Tuesday, USDA mandatory pork carcass cutout slid $1.71, is down $7.36 vs. last week & the lowest since May 6
· CME Lean Hog Index down $1.11 at $68.87. December futures unchanged at $58.225 & are $10.645 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather