HIGHLIGHTS
· Market Trend: Corn, Down 2; Soybeans, ½ to 1 Higher; Wheat, Up 1+
· Oil is down again today and the chicken or egg question is it because of too much supply or not enough demand? Asia was mixed overnight: Shanghai lost 1.65%; the Kospi closed down .78% but both the Hang Seng (+.45%) and the Nikkei (+.18%) posted gains. Europe is responding to oil’s decline in a positive manner: CAC 40, +1.57%; DAX, +1.54% and the FTSE, +.40%. Pre-market indicators point to a hefty start for Wall Street: DOW futures, +91; the NAS, +23 and the S&P, +11 ¼. Externals: $ Index, up ¼ point+ to 92.425; gold is $5.50 higher at $1,221.50 and energy futures are lower.
· T-storm Weather: Upper-level high pressure suppresses thunderstorms across Goias and Northeast / Southeast Brazil over the next 7-10 days; little to no rainfall occurs in much of Bahia, Goias, and Minas Gerais, and a lack of cloudiness causes above-average maximums in the mid-90s to dominate. To the south, a parade of systems ride the edge of the high and trigger thunderstorms from central / northern Argentina into South Brazil and Paraguay through the period; widespread rainfall of 2.00" - 4.00" occurs with localized amounts in excess of 6.00", increasing the coverage and intensity of wetness
· Mar Corn Down $.02 at $3.9825; May Down $.0225 at $4.06. The funds bought 5 K Friday
· Jan SB Up $.0050 at $10.52; May Up $.0050 at $10.5275. Del’y: SB, 120; SBO, 55. Funds: bought 3 K SB; 2 K SBM; sold 1 K SBO
· Mar Wheat Up $.0125 at $5.65; May Up $.01 at $5.6875. The funds sold 3 K to close out the week
CORN/SORGHUM    
· USDA WASDE report at 11:00 AM CST: Avg. trade guess for U.S. corn 14/15 carryout, 1.940 Bbu vs. 1.998 in December
· USDA Grain Stocks report: Avg. trade guess for Dec. 1 U.S. corn stocks is 11.161 Bbu vs. 10.453 last year
· USDA Crop Production report: Avg. trade guess for 2014 U.S. corn production is 14.366 Bbu vs. 14.407 in December
· Export Inspections released at 10 AM CST; Corn, 37.4 needed; 21.2 last week. Milo—3.2 needed; 4.8 last week
SOYBEANS/WHEAT
· USDA WASDE report: Avg. trade guess for U.S. soybean 14/15 carryout is 402 mbu vs. 410 in December
· USDA Grain Stocks report: Avg. trade guess for Dec. 1 U.S. soybean stocks is 2.608 Bbu vs. 2.154 last year
· USDA Crop Production report: Avg. trade guess for 2014 U.S. soybean production is 3.965 Bbu vs. 3.958 in December
· Export Inspections released at 10 AM CST; Soybeans, 18.5 needed; 51.7 last week
· USDA WASDE report: Avg. trade guess for U.S. all wheat 14/15 carryout is 663 mbu vs. 654 in December
· USDA Grain Stocks report: Avg. trade guess for Dec. 1 U.S. all wheat stocks is 1.501 Bbu vs. 1.475 last year
· Jan. 12 USDA Winter Wheat Seedings: Avg. trade guesses; HRW, 31.2 (30.5 last year); SRW, 8.1 (8.5), White, 3.5 (3.4)
ENERGY
· Futures are lower: QCLG15, -$1.17 at $47.19; QRBG, -$0.0183; QNGG, -$.092; and QHOG, -$.0169
· Cash ethanol markets were narrowly mixed on Friday: Chicago added 2; New York, Dallas and Tampa eased ½; Gulf up 1; and LA was ½ higher at $1.66 per gallon
· RINs were lower: 2013’s down 2 ¼ to 73-74; 2014’s off ¼ to 74 ½-77; and 2015’s eased ½ to 74-77
· The inverse in the Feb RBOB/Feb Ethanol spread gained about 3 cents on Friday, moving to -$.1528/gallon
LIVESTOCK/POULTRY  
· Choice boxed beef values on Friday were $2.22 higher vs. the previous day
· February live cattle futures closed at $160.60 on Friday--the lowest settlement price for the contract since Dec. 24
· USDA pork carcass cutout value increased 21-cents on Friday and is 75-cents higher than one week ago
· CME Lean Hog Index 21-cents lower at $77.40. February futures up $0.85 to $79.025 and $1.625 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather