HIGHLIGHTS

·         Market Trend—Corn, Flat to up ½; Soybeans, Down 5-6; Wheat, 5-6 Higher

·         Yellen’s testimony suggests the Fed won’t cut back its stimulus efforts until March, if even then. And, in contrast to most analysts’ expectations for a Dec or Jan winding down. Her remarks lifted Asian stocks--the Nikkei gained 2.1% overnight; the Shanghai Composite moved up .6% and the Hang Seng, .6%.  Indices in Australia, Taiwan and South Korea also basked in the enthusiasm.  Europe’s response was a bit more tepid as QIII economic growth was a modest .1% and pointed to weakness in the key economies of France and Germany.  US futures are marginally better, ahead of initial jobless claims and trade-balance data. Outside markets:  gold, up $21-$22; $ Index, ¼ point higher at $81.20 while energies are lower.

·         T-storm Weather: Significant warming occurs through Saturday-Sunday across the central U.S., followed by very sharp cooling Sunday-Monday when a large pool of Arctic air crashes southward and envelops the region.  A round of rain and thunderstorms occur in advance of the transition to coldness, which brings 0.50” – 1.00” of rain to the eastern Corn Belt and Delta; corn harvesting slows, while SRW wheat remains moist.  A significant precipitation event is not foreseen for grazing cattle in the Plains.

·         Dec Corn Up $.0050 at $4.3025; Mar Corn Unch at $4.40250.  Funds sold 2 K yesterday

·         Nov SB Down $.05 at $13.1475 Jan SB Down $.0675 at $13.0825.  Funds even on beans; sell 4 K SBM; buy 2 K SBO

·         Dec Wheat Up $.0550 at $6.51; Mar Wheat Up $.0550 at $6.61.  The funds were evenWednesday

CORN/SORGHUM

·         USDA’s Export Sales report will be released on Friday

·         ATI Research: Weekly export forecast model suggests near-term loadings should average 34 million per week.  That’s triple the average from a year ago and some 7 million per week above the 5-year average for the upcoming month

·         Implied corn grind for ethanol in latest reporting week was a million bushels lower at 97.5 million, which is 8.4mbu greater than the year-ago week

·         T-storm Weather: Hot & breezy weather aid drying across Argentina today as maximums reach the 90s.  A strong cool front breaks warmth & triggers a round of thunderstorms tonight & Friday; 0.50”-1.00” amounts slow corn planting

SOYBEANS/WHEAT

·         ATI Research: U.S. has unprecedented export demand for both soybeans and meal through early spring.  Soybean exports to average 70.5 per week over the next month, with meal exports to average 260 K MT per week

·         T-storm Weather: Rain from Saturday-Sunday forward across much of Brazil/Paraguay keeps vegetative soybeans in key areas of Center-West Brazil moist, while improving soil moisture in drying areas of South Brazil and Paraguay

·         U.S. soybean export sales to China the past month were 116mbu--up from 44 million for each of the past 2 years

·         ATI Research: There are indications Australia’s wheat crop may fall short of USDA’s latest forecast of 25.5 MMT

·         T-storm Weather: Except for longer-term dryness in parts of Oklahoma and Texas, significant dryness problems do not currently exist for U.S. winter wheat

ENERGY

·         Energy markets are slightly weaker: QCLZ13,-$0.24 at $93.63; QRBZ, +$0.0211; QNGZ, -$.03 andQHOZ, -$.0027

·         EIA estimates (API):  crude, +1.0 mb (+0.6); gasoline, -0.7 mb (-1.7) and distillates, -1.0 mb (+0.6)

·         Additional strength noted in most cash ethanol markets on Wednesday: Chicago up 5 ¾; Gulf was 6 ½ firmer; Dallas was 5 ½ higher; Tampa was up 7; NY was 2 ½ firmer; and LA increased 4 ½ to $2.04 ½ per gallon

·         RINs were slightly weaker: 2012’s down ½ to 19-21; 2013’s off 1 to 20-22; & 2014’s declined 1 to 20 ½-23

·         The December RBOB/December ethanol spread lost a cent and half, settling at $.8590/gallon

LIVESTOCK/POULTRY                        ​;                        ​           

·       ​;  After falling $3.30 over the previous five trading days, Choice boxed beef values firmed 75-cents yesterday

·         The USDA pork carcass cutout value fell $1.50 yesterday and has declined $2.01 over the last two days

·         The USDA’s Iowa/Minnesota average cash lean hog price eased 35-cents yesterday to $81.53

·         Broiler egg set last week was even with last year, but average egg set for the last four weeks is 3.4% larger

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