HIGHLIGHTS
· Market Trend: Corn, Down 4-5; Soybeans, Down 7-8; Wheat, Down 5-6
· Persistently low oil and metal prices along with a cut in the World Bank’s global economic growth forecast from 3.4% down to 3.0% pressured world equity markets overnight. The Nikkei fell 1.7%; the Hang Seng was off .43% and Shanghai shed .37%. Europe fared no better: FTSE, off 1.48%; CAC 40, down .37% and the DAX, .30% lower. Pre-markets bode much the same for the U.S.: DOW futures, down 60; NAS, 10 lower and the S&P, 6 ¼ weaker. The $ Index is little changed at 92.505; gold is $8.70 to the downside at $1,225.60 and energy futures are again mostly lower.
· T-storm Weather: Stagnant upper-level high pressure likely causes 40-day rainfall departures to range from -8.00" to -10.00" by next week in / adjacent Goias and Minas Gerais. Temperatures also remain very warm to hot. Changes follow for this region next Tuesday-Thursday as a cool front triggers thunderstorms. Otherwise, areas of thunderstorms occur in other areas of Brazil, including excessive rain in Rio Grande do Sul. Also note that heavy rain continues through today in northern Argentina, & around 0.75" – 1.50" of rain recurs in Argentina within Saturday-Monday as a strong cool front passes & ultimately breaks the wet pattern
· Mar Corn Down $.0450 at $3.8125; May Down $.0450 at $3.89. The funds sold an impressive 20 K on Tuesday
· Jan SB Down $.0825 at $9.9175; May Down $.0775 at $9.9625. Del’y: SB, 93 SBO, 135. Funds: sold 8 K SB; 6 K SBM; 0 K SBO
· Mar Wheat Down $.0525 at $5.4275; May Down $.0550 at $5.4650. The funds again sold 5 K yesterday
CORN/SORGHUM      
· ATI Research: U.S. corn exports are forecast at 28-30 mbu per week over the next month with a port split of 20-25 via the Gulf, 0-2 off the PNW and 3-5 via the Interior
· T-storm Weather: First-crop Brazil corn had warmest day of vegetative season Mon.; 73% of crop had temp at least 90
· Private crop consultant: Majority of Argentina corn is rated good to very good with a small amount rated as average
· Ethanol margins: $0.24 per gallon vs. $0.39 a week ago sharply below $0.77 a year ago. EIA report at 9:30 AM CST
SOYBEANS/WHEAT
· ATI Research: U.S. soybean exports are forecast to average 65-70 mbu per week over the next month
· Private crop consultant: While Brazil soybean crop estimate may be trimmed, it still looks like output will be a record
· T-storm Weather: Rain is unneeded for soybeans in South Brazil into Argentina where 30-day departures exceed 6.00”
· ATI Research: U.S. all wheat exports are forecast to average 13-18 mbu per week over the next month
· T-storm Weather: Coverage of agricultural drought sharply increased the last week to include 63% of U.S. HRW wheat
ENERGY
· Futures are mostly lower: QCLG15, -$0.25 at $44.64; QRBG, -$0.0061; QNGG, +$.080; and QHOG, -$.0177
· EIA estimates: crude, +0.5 (API: +3.9); Gasoline, +2.6 (+1.6); Distillates, +1.0 (+0.4)
· Declines continued to be seen in cash ethanol markets on Tuesday: Chicago eased 3 ¼; New York off 6; Gulf down 4 ¾; Dallas slipped 4; Tampa dropped 4 ½; and LA was down a penny at $1.56 per gallon
· RINs were lower: 2013’s down 3 at 68 ½-71; 2014’s off 3 at 69 ½-72; and 2015’s slid 2 ¾ to 69-72
· The inverse in the Feb RBOB/Feb Ethanol spread gave up nearly 4 cents, settling at -$.1425 per gallon
LIVESTOCK/POULTRY    
·  Choice boxed beef values increased $2.85 on Tuesday and are up $11.30 compared to last week
· Cash cattle trading was at a standstill on Tuesday. Asking prices are projected to be near $170-$172 in the South
· USDA pork carcass cutout value increased $1.33 on Tuesday and is $1.47 higher compared to last week
· CME Lean Hog Index 45-cents lower at $76.26. February futures down $1.475 to $75.175 and $1.085 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather