HIGHLIGHTS
· Market Trend—Corn, Down 1-2; Soybeans, 8-9 Lower; Wheat, Steady (WZ) to Down 3-4
· December 13 Deliveries: 123 SBO; 4 Chicago Wheat; 44 KC Wheat
· “Tentative” is the operative word this morning as markets await next week’s Fed decision on the stimulus. The Nikkei, Hang Seng posted slight gains; Shanghai was weaker with EU markets reporting a mixed start to the day. Wall Street futures are positive at the moment: Dow, up 38; the S&P, 7 higher and the Nasdaq, 13 ½ to the plus side. External markets show gold up .26% at $1,228; the energies are mostly lower with the exception of Nat Gas/weekend storm & the $ Index is 80.37, up .162
· T-storm Weather: Heavy rainfall focuses on corn and soybeans in northern areas of Brazil (Bahia, Goias, Mato Grosso, Goias) through Dec. 17; these states usually account for 40% and 48% of total corn and soybean production. Significant rainfall is not immediately foreseen to the south, and it will be monitored; only Mato Grosso do Sul, which accounts for 6% and 8% of corn and soybean production, respectively, is currently too dry. Upper-level high pressure induces heat across Argentina from Saturdaythrough Tuesday. Heat breaks for a few days later next week, but temps likely remain warmer than average.
· Dec Corn Down $.0175 at $4.2650; Mar Corn Down $.0225 at $4.32. The funds sold 10 Thursday-RFS mandate concerns
· Jan SB Down $.0850 at $13.1525; Mar SB Down $.0925 at $13.0275. The funds sold 10 K SB, 7 K SBM and 5 K SBO--China
· Dec Wheat steady at $6.2250; Mar Down $.0375 at $6.30. Funds sold 5 K yesterday
CORN/SORGHUM
· U.S. Sens. Diane Feinstein, D-Calif., and Tom Coburn, R-Okla introduced a bill Thursday (the "Corn Ethanol Mandate Elimination Act of 2013") to eliminate the corn ethanol mandate within the Renewable Fuel Standard
· ATI Research: U.S. corn export sales of 27.7mbu were near the top end of the trade range of 24-30. China is still buying with purchases totaling 4.4mbu. Sorghum sales of 11.4mbu were solid with China buying 9.1mbu
· T-storm Weather: Several locations in Argentina would benefit from rain because 30-day deficits range from 1.00”-2.00”, especially in corn areas of Buenos Aires and La Pampa where minimal rainfall occurred over the last two weeks
· Buenos Aires Grains Exchange pegs Argentina corn planting at 55%% complete as of Dec. 12, up from 47% a week ago
SOYBEANS/WHEAT
· ATI Research: U.S. soybean export sales of 55.7mbu were sharply above the top end of the trade range of 28-35.
· T-storm Weather: Most soybean areas of Brazil (and Paraguay) were seasonably-wet for growth over the last 30 days
· Buenos Aires Grains Exchange pegs Argentina soybean planting at 66% complete as of Dec. 12, a gain of 8 points
· New contract lows set Thursday in March 2014 futures: Chicago ($6.30 ¼); KC ($6.73 ½); and Minneapolis ($6.62 ¾)
· Export Sales: U.S, wheat export sales of 14.1mbu were decent vs. the trade range of 11-18. Brazil bought 2.0
· Buenos Aires Grains Exchange pegs Argentina wheat harvest at 47% complete as of Dec. 12, up from 30% LW
ENERGY
· Energy markets—mostly lower: QCLF14,-$0.40 at $97.09; QRBF, +$0.0060; QNGF, -$.024 andQHOF, +$.0042
· Weaker—in some cases, sharply lower—trend in cash ethanol markets on Thursday: Chicago off 10 ¾; Gulf lost a dime; Tampa and Dallas both down 8; New York plummeted 50; while LA dipped 6 to $2.56 ½ per gallon
· RINs were slightly firmer: 2012’s up 1 to 28-30; 2013’s gained 1 to 29-31; & 2014’s also 1 higher at 29-31
· The January RBOB/January ethanol spread widened further, out nearly 7 ½ cents to $.8048/gal on Thursday
LIVESTOCK/POULTRY  
· Choice boxed beef values fell $2.16 yesterday and are down $1.96 from a week earlier
· Cash cattle markets are quiet with feedyards offering cattle at $134 while packers bid $129. Cattle traded LW at $132
· The USDA pork carcass cutout value fell $1.87 yesterday and has lost $2.47 over the last two days
· The USDA’s Iowa/Minnesota average cash lean hog price firmed 46-cents yesterday to $78.72
Sources: Bloomberg, Dow Jones, AP, T-storm Weather