HIGHLIGHTS

·         Market Trend—Corn, Steady to ½ Higher; Soybeans, 5 Higher; Wheat, 1-2 Lower

·         Better than expected 3^rd quarter U.S. economic growth makes up for credit crunch in China, most overseas markets higher this morning.  Former grows 4.1%, versus 3.6% previously estimated. Nikkei, up .07%; Hang Send, .5% higher and Shanghai, ¼ % firmer; FTSE and DAX both up .5 to .6% while the CAC-40 is slightly weaker.  Futures for U.S. indices are in the green—S&P, up 8.7 points; the Dow, 42 higher and the Nasdaq, up 46-47.  Gold is $9 lower at $1,195; energies are mostly weaker; $ Index down .135

·         T-storm Weather: Widespread heat results through Wednesday across Argentina, though only a brief period of heat occurs in southern Brazil and Paraguay Tuesday-Thursday.  A cool front breaks heat and triggers some thunderstorms across the region Wednesday-Friday, but high coverage of heavy rainfall is not expected.  It remains most likely for the front to exit and allow the upper-level high to quickly re-establish by Dec. 28-30, thereby introducing another period of hot weather.  Therefore, we continue with our forecast for high coverage of below-average rainfall across Argentina, southern Brazil, and Paraguay

·         Mar Corn Down $.0025 at $4.3350; May Down $.0025 at $4.4175.  The funds bought another 4 K on Friday  

·         Jan SB Up $.05 at $13.44; Mar SB Up $.05 at $13.36.  The funds bought 4 K SB, 2 K SBM and 2 K SBO

·         Mar Wheat Down $.0125 at $6.1225; May Down $.0125 at $6.1950.  Funds bought 1 K to close out the week     

CORN/SORGHUM

·         ATI Research: Buenos Aires Grains Exchange pegs corn planting in Argentina as of Dec. 19 at 65%.  December 23 in Argentina is roughly equivalent to June 23 in the U.S. so it’s likely some un-planted corn will be switched to soybeans

·         T-storm Weather: Two-week rainfall deficits are notable in corn producing areas of Argentina because several locations received less than one-half of their average rainfall over the period

·         Export Inspections released at 10 AM CST; Corn, 28.7 needed; 25.1 last week.  Milo—3.9 needed; 0.5 last week

• Commitment of Traders report: Non-Commercial long corn futures positions increase 1,978 contracts

SOYBEANS/WHEAT

• ATI Research: Buenos Aires Grains Exchange pegs soybean planting in Argentina as of Dec. 19 at 77%.  It appears increasingly likely that a significant shift from corn acreage to soybeans will eventually take place
• Export Inspections released at 10 AM CST; Soybeans, 19.2 needed; 62.5 last week

·         Commitment of Traders report: Non-Commercial long soybean futures positions increase 6,882 contracts

• ATI Research: Buenos Aires Grains Exchange pegs wheat harvest in Argentina as of Dec. 19 at 54%.  Indications continue to point to a significant reduction in production in the next USDA report on Jan. 10
• Export Inspections released at 10 AM CST; Wheat, 16.8 needed; 17.6 last week
• Commitment of Traders: CBT Non-Commercial long wheat futures positions increase 1,769 contracts 

ENERGY

·         Energy markets are mostly lower:  QCLG14,-$0.39 at $98.93; QRBG, -$0.0071; QNGG, +$.106 and QHOG, -$.0083

·         Cash ethanol markets were mixed on Friday: Chicago and Gulf were both steady; Dallas and Tampa each gained 11 ½; New York declined a penny; while LA was up 3 ½ to $2.51 ½ per gallon

·         RINs slightly firmer: 2012’s up ½ to 29 ½-30; 2013’s gained ¾ to 30-31; & 2014’s were 1 ¼ higher at 30 ½-31 ½

·         The January RBOB/January ethanol spread was back out on Friday, widening over 3 ¼ cents to $.8711/gallon

LIVESTOCK/POULTRY                          &n​bsp;                       &nb​sp;        

• November placements down 3% from last year in Friday’s USDA Cattle on Feed Report; December 1 on feed down 5% from last year and smallest for this time of year since 1996
• Choice boxed beef values fell 92-cents Friday and have declined $3.18 over the last four days
• The USDA mandatory pork carcass cutout value fell 54-cents Friday and has lost $5.29 over the last four days
• The USDA’s Iowa/Minnesota average cash lean hog price eased 27-cents Friday to $76.35

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