HIGHLIGHTS
· Market Trend—Corn, Mixed; Soybeans, Up 2-3; Wheat, ¼ to ½ Higher
· “Problems long perceived, seldom . . .” This adage certainly seems applicable to the equity markets, at least for a day. The Dow surged nearly 300 points to an all-time high following the Fed’s announcement that the economy was strong enough to handle a modest cut-back in the stimulus program—e.g., an economic vote of confidence. The $ cut amounted to $10 billion/month, from $85 down to $75 beginning in January. Data out today: weekly jobless, 345 K expected; Philly mfg survey, 8.5 versus 6.5; Nov home sales, -2.0% versus -3.2% LM. Asia: mixed; Europe: 1+% higher; Dow futures, off 3; S&P, -3/4 of a point; Nasdaq, - 6 ½. Gold is $26 lower at $1,209; the energies are mostly lower and the $ Index is up 4/10’s a point at 80.64
· Weather: Hot and mostly dry weather will continue in Argentina the next week with the best chances for rain along the southern and western edge while excluding key areas of S Brazil/Paraguay. Some storms are forecast for Argentina next week while chances are lower for S Brazil with heavy precipitation amounts continue in the northern areas of Brazil. The U.S. outlook calls for 1-3” of rain to SRW wheat areas in the ECB/Delta Sat-Sun. The S Plains can expect up to 1”. Heavy snow is probable in parts of the Central and/or Eastern Corn Belt
· Mar Corn Up $.0025 at $4.2525; May Up $.0025 at $4.3375. The funds sold 2 K Wednesday
· Jan SB Up $.0275 at $13.2675; Mar SB Up $.03 at $13.1675. The funds sold 6 K SB, 5 K SBM and 2 K SBO
· Mar Wheat Up $.0050 at $6.1325; May Up $.0025 at $6.19505. Funds were sellers of an estimated 3 K
CORN/SORGHUM
· Export Sales out this morning: corn needs 10.8/week versus 27.4 LW and 22-30 expected. Milo needs to come in at 2.3 million, compared to 11.4 a week ago
· If foreign corn shipments are pegged 2.7 MMT higher and YTD US sales are 14.2 MMT greater, new era for exports?
· Ethanol grind slipped 1.8 mbu to 100.3 but was 11.5 million higher than a year ago. Implied annual grind, assuming 100 million for milo leaves corn at 5.060 bbu with USDA at 4.95 billion corn
· U.S. ethanol inventories rebounded 177 K barrels this week but the shortfall versus 2012 balloned to a record 5.2 mb
· Brazil supposedly to limit prohibit Paranagua corn exports after Jan 15 to facilitate bean shipments
SOYBEANS/WHEAT
· Export Sales: Soybeans need to average 1.4 per week, against 40.7 LW and 26-33 trade expectations. Meal, 89.2 K versus 82.7 LW and 150-300 expected: Oil, 6.1 per week needed; 2.3 LW and 10-30 expected
· Going into this morning Sales report, unshipped SBM sales were at all-time high of nearly 3.65 MMT
· Early maturing bean harvest to get underway within 3 weeks with possible Brazil Feb exports of 2 MMT(2.3LY)
· Wheat: export sales expected at 11-15, with last week at 13.7 and 9.8/week required
ENERGY
· Energy markets are mixed: QCLF14,-$0.04 at $97.76; QRBF, -$0.0039; QNGF, +$.074 and QHOF, -$.0036
· Cash ethanol markets trade lower: Dallas and LA were both off 4 cents; Tampa, down 4 ½; NY lost a dime while Chicago and the Gulf eased 1 to 1 ½ cents/gallon
· RINs mostly edged up: 2012’s were up ¼ to 29-30½; 2013’s gained ½ to 29 ½-30; 2014’s were steady at 29-30
· The January RBOB/January ethanol spread widened nearly 4 cents to $.8753/gallon yesterday as ethanol stocks rose
LIVESTOCK/POULTRY    
·   Choice boxed beef values eased 25-cents yesterday and have declined $1.79 over the last two days
· The USDA mandatory pork carcass cutout value fell $2.02 yesterday and has lost $2.17 over the last two days
· The USDA’s Iowa/Minnesota average cash lean hog price fell $1.43 yesterday to $76.79
· Broiler egg set last week was up 3.1% from last year and average set over the last four weeks is up 2.5%
Sources: Bloomberg, Dow Jones, AP, T-storm Weather