HIGHLIGHTS
· Market Trend: Corn, Down 2; Soybeans, decidedly firmer old crop; Wheat, Down 2
· Today, markets are “muted/mixed” ahead of Yellen’s remarks to the Senate Banking Committee. Europe’s start was uneventful and Asia finished mixed. The Nikkei lost .32%; the Hang Seng rose 1.74% and Shanghai was .3% higher. Early losses in Europe have accelerated with the FTSE off .8%; the DAX, 1.5% lower and the CAC-40, down .77%. U.S. futures don’t look much better: the S&P is off 7.50; the Dow, 63 weaker and the Nasdaq, 8 ¾ lower. Gold has a positive tone to it, up $4.12/oz at $1.332; the energies are all lower and the $ Index is up .072 at 80.535
· T-storm Weather: Several cool fronts trigger thunderstorms across Brazil and Paraguay and dissipate through 7-10 days; near-average rainfall occurs in most areas. The impact is difficult to assess, but is most probable to: 1) limit first-crop harvesting and second-crop planting rates, while 2) improving soil moisture for second-crop corn in South Brazil, but 3) arriving later-than-ideal for late-maturing first-planted crops. In Argentina, unseasonable coolness aids filling of corn & soybeans while across the central U.S., temperatures remain extremely cold for late-February & early-March standards across northern areas for another week
· Mar Corn Down $.02 at $4.5350; May Down $.02 at $4.59. The funds sold 1,000 contracts at mid-week
· Mar SB Up $.0750at $14.1475; May SB Up $.08 at $14.05. Funds bought 5 K SB, sell 1 K SBM and bought 5 K SBO
· Mar Wheat Down $.0225 at $5.9775; May Wheat Down $.02 at $6.0350. The funds unloaded 8 KWednesday
CORN/SORGHUM
· Export Sales to be released at 7:30 AM CST. Trade expects 19 to 31mbu corn
· March 2014 corn futures traded to $4.59 on Wednesday, the highest price for the contract since Oct. 18, 2013
· Ethanol grind for week end Feb. 21: 905 thou barrels per day, up 2 thou vs. last week and up 11.5% vs. 812 last year
· T-storm Weather: A few thunderstorms cannot be ruled out across Argentina corn areas March 1-2 but most receive less than 0.33” over the next week. Therefore, coverage of excessive wetness slowly diminishes through early-March
SOYBEANS/WHEAT
· Export Sales: Trade expects 15 to 29mbu soybeans; soymeal, 100-250 K MT; soyoil, 10-30 KMT
· March 2014 soybean futures established a new contract high of $14.08 on Wednesday. This is also the highest price for a nearby soybean contract since Sept. 13, 2013
· T-storm Weather: Highest rain coverage/amounts next 10 days likely in Center-West, Brazil, slowing soybean harvest
· Export Sales: Trade expects 11 to 18mbu all wheat
· T-storm Weather: Upcoming snow protects HRW wheat in Nebraska prior to arrival of intense cold early next week
ENERGY
· Energies are lower: QCLJ14, -$0.22 at $102.37; QRBJ, -$0.0178; QNGJ, -$.080 and QHOJ, -$.0185
· Gains seen across the board in cash ethanol markets on Wednesday: Chicago and Gulf were up 1; NY climbed 2 ½; Tampa jumped 9; Dallas firmed by 11; and LA prices were a dime higher at $2.91 per gallon
· RINs were weaker: 2012’s down 4 to 51 ½-55 ½; 2013’s off 3 ½ to 52 ¼-57 ¼; and 2014’s slipped 4 to 47 ½-54 ½
· The March RBOB/March ethanol spread was little changed, firming $.0029 to $.562 per gallon
LIVESTOCK/POULTRY ;
· Plains cash cattle traded yesterday at $150 to $152, up $5 to $6 from last week
· Choice boxed beef values increased $2.45 yesterday and have gained $5.20 over the last three days
· The USDA pork carcass cutout value firmed 24-cents yesterday and has increased $5.79 over the last five trading days
· The USDA’s Iowa/Minnesota average cash lean hog price gained $1.80 yesterday to $96.94
Sources: Bloomberg, Dow Jones, AP, T-storm Weather