HIGHLIGHTS
· Market Trend—Corn, Down 3-4; Soybeans, 4-5 Lower; Wheat, Down 4
· Asia lower, awaiting Fed Reserve decision later in the week. Japan’s Central Bank reports improved business sentiment but market un-fazed as Nikkei loses 1.6%; the Hang Seng closed .6% lower and the Kospi was off .6%. Europe posts early gains with the FTSE, DAX and CAC-40 all higher—best mfg results since May 2011; Euro Zone PMI edges up 1.1 points to 52.7, versus 51.9 expected. U.S. futures are positive: the Dow is showing a 67 point higher start; the S&P, up 8 ½ and the Nasdaq, 16 to the plus side. Gold is off .42% at $1,229; energies are mostly higher and the $ Index is nearly a ¼ point lower at 80.005
· T-storm Weather: Temperatures average warmer to much warmer than usual across Argentina throughTuesday with widespread maximums in the mid-90s to low-100s . A few thunderstorms accompany the pattern, but much of Argentina, southern Brazil, and Paraguay stay drier to much drier than usual; best chances for significant rainfall are along the southern and western fringe of Argentina production on Tuesday. Further north, corn and soybeans in northern areas of Center-West and Southeast Brazil (and Bahia) benefit from the pattern as it causes the remnant of a cool front to linger; heavy rainfall of 2.50” – 5.00” occurs
· Mar Corn Down $.0375 at $4.2150; May Down $.0375 at $4.30. The funds sold 8 K to close out the week
· Jan SB Down $.0425at $13.2325; Mar SB Down $.0425 at $13.0950. The funds bought 3 K SK, 2 K SBM and sold 4 K SBO
· Mar Wheat Down $.04 at $6.2475; May Down $.04 at $6.3075. Funds sold 4 K on Friday
CORN/SORGHUM
·   ATI Research: Buenos Aires Grains Exchange pegs corn planting in Argentina at 55% as of Dec. 12 Mid-December in Argentina is roughly equivalent to mid-June in the U.S. so it’s likely at least some corn will be switched to soybeans
· T-storm Weather: Upcoming warmth and dryness in Argentina this week will help accelerate corn planting, though it occurs at the expense of diminishing soil moisture that will eventually lead to a need for rain later in December
· Export Inspections released at 10 AM CST; Corn, 28.6 needed; 40.2 last week. Milo—3.8 needed; 2.9 last week
· Commitment of Traders report: Non-Commercial long corn futures positions decrease 803 contracts
SOYBEANS/WHEAT
· ATI Research: Buenos Aires Grains Exchange pegs soybean planting in Argentina at 66% as of Dec. 12. Extended delays to corn planting likely to result in additional soybean acreage compared to initial expectations
· Export Inspections released at 10 AM CST; Soybeans, 20.3 needed; 60.4 last week
· Commitment of Traders report: Non-Commercial long soybean futures positions increase 13,115 contracts
· ATI Research: Buenos Aires Grains Exchange pegs wheat harvest in Argentina at 47% as of Dec. 12. Expect a reduction in USDA production forecast in Jan. 10 report
· Export Inspections released at 10 AM CST; Wheat, 16.8 needed; 19.8 last week
· Commitment of Traders: CBT Non-Commercial long wheat futures positions decrease 6,032 contracts
ENERGY
· Energy markets—mostly higher with QCLF14,+$0.55 at $97.15; QRBF, +$0.0285; QNGF, -$.098 andQHOF, +$.0479
· Sharply lower trend was evident in cash ethanol markets on Friday: Chicago down 14 ½; Gulf off 12 ½; Dallas and Tampa both declined 15 ½; New York crashed another 45; while LA lost a nickel to $2.51 ½ per gallon
· RINs fractionally weaker: 2012’s off ½ to 28-29; 2013’s down ½ to 29-30; & 2014’s also ½ lower at 29-30
· The January RBOB/January ethanol spread widened another 6 cents, to $.8643/gal
LIVESTOCK/POULTRY ;
· Choice boxed beef values fell $1.56 Friday and have lost $3.72 over the last two trading days
· Cash cattle traded Friday at mostly $131, down $1 from the week before
· The USDA pork carcass cutout value fell 88-cents Friday and has lost $3.35 over the last three days
· The USDA’s Iowa/Minnesota average cash lean hog price declined $2.07 Friday to $76.25
Sources: Bloomberg, Dow Jones, AP, T-storm Weather