HIGHLIGHTS

·         Market Trend:  Corn, Down 1-2; Soybeans, Old, 1-3 Lower; New, Up 1-2;  Wheat, Up 1     

·         Equity markets awaiting today’s non-farm U.S. jobs report with consensus numbers at 189,000, a rather hefty increase from December’s meager 74 K total. Overseas, a German court further delayed a decision on the ECB‘s 2012 pledge to buy bonds from financially strapped member nations, leading to weakness in early trading.  Markets there have since bounced back with the FTSE up .07%; the DAX, +.2% and the CAC-40, .14% higher.  The Nikkei posted a 2.2% gain overnight; Shanghai was flat after returning from a week-long hiatus. U.S. futures are positive:  Dow, +19; S&P, +3 ¾; and the Nasdaq, +15 ¾. Outside markets find the energies a little weaker; the $ Index is up .048 at 81.05 and gold is $4 more expensive, at $1.236/oz.

·         T-storm Weather: Upper-level high pressure anchors across Brazil for at least one more week, while focusing the jet stream on Argentina.  Widespread coverage of above-average heat and below-average rainfall continue for Brazil and Paraguay, while multiple rounds of heavy rain recur in Argentina.  The intensity of the high temporarily diminishes within Feb. 13-16, potentially triggering a round of thunderstorms in South Brazil and Paraguay.  While notable, it remains most probable for the high to re-establish the following week, and rain chances remain low across and adjacent to driest areas of Southeast Brazil

·         Mar Corn Down $.0150 at $4.4150; May Down $.0175 at $4.4675.  The funds ended Thursday trading even  

·         Mar SB Down $.01 at $13.2475; May Down $.0125 at $13.1050.  Funds bought 5 K SB, 4 K SBM and 7 K SBO

·         Mar Wheat Up $.01 at $5.8175; May Wheat Up $.0125 at $5.8350.  The funds sold 4 K yesterday

 

CORN/SORGHUM

·         ATI Research: Another week of significantly more export sales than expected: 66.9mbu vs. trade range of 35 to 47mbu.  Year-to-date sales of 1.319Bbu represent 91% of the annual USDA forecast—a record for this time of year

·         Milo export sales of 5.0mbu were solid.  Major purchase of 11.7 by China offset by decreases for Unknown & Japan

·         T-storm Weather: A meteorological process called “training”, where thunderstorms continually form and move across the same area, likely developed field flooding across corn in Central Argentina this week

·         March 2014 corn futures traded $4.47 ¼ on Thursday, which is the highest price for the contract since Nov. 12, 2013

SOYBEANS/WHEAT

·         ATI Research: Soybean export sales for 13/14 of 21.2mbu were respectable.  Year-to-date sales of 1.581Bbu are 86 million above the annual USDA forecast, suggesting an increase in government projection in Monday’s WASDE report

·         T-storm Weather: Rain in Southeast Brazil essentially stopped in late-December, which has raised concern about later-planted soybeans in the region 

·         ATI Research: All wheat export sales for 13/14 of 23.5mbu were fairly good.  Year-to-date sales of 981mbu are 87% of the annual USDA forecast—well above the norm for this time or year.  Room for higher forecast in Monday’s WASDE?

·         T-storm Weather: Intense coldness occurs today across U.S. Central/Northern Plains but nearly all winter wheat is protected by snowpack.  Temperatures moderate from Saturday-Sunday forward as the cone of Arctic air retreats

ENERGY

·         Mostly lower trading in energy:  QCLH14, -$0.43 at $97.41; QRBH, -$0.0044; QNGH, -$.165 andQHOH, +$.0065

·         Cash ethanol markets were mostly firmer Thursday: Chicago up 4; Gulf was 2 higher; NY climbed 7; Tampa and Dallas gained a penny; and LA was up ½ to $2.15 ½ per gallon

·         RINs edged higher: 2012’s were 1 higher at 49 ½-52; 2013’s up 1 to 50 ½-53; and 2014’s climbed 2 to 50 ½-53

·         The March RBOB/March ethanol spread widened over 9 ¼ cents to $.7640 per gallon on Thursday

LIVESTOCK/POULTRY                 ​                         ​                 

·​         Choice boxed beef values fell $3.13 yesterday and have declined $26.54 from there January 22 record high of $240.05

·         Cash cattle are quiet with feedyards offerings at $146 while packers bid $139.  Cattle traded LW at $145 to $146

·         After easing 41-cents Wednesday, the USDA mandatory pork carcass cutout firmed 14-cents yesterday

·         The USDA’s Iowa/Minnesota average cash lean hog price gained $1.07 yesterday to $83.62

Sources: Bloomberg, Dow Jones, AP, T-storm Weather