HIGHLIGHTS

·         Market Trend:  Corn, Steady to ½ Lower; Soybeans, Down 5-6; Wheat, Unchanged to ½ Higher    

·         Uneasiness over future Chinese economic growth is weighing on global equity markets this morning.  Weakness in the country’s currency and a slowing housing market helped push the Shanghai Composite 2.1% lower and the Hang Seng was .3% weaker.  The Nikkei managed a 1.4% gain while European markets are also lower--the zone posted a .4% quarterly growth rate. Both the DAX and the CAC-40 are a ½% lower and the FTSE, down .94%.  Futures for U.S. indices are all in the red:  S&P, down 3 ¼; the Dow, off 17 and the Nasdaq, 5 ¾ lower.  Gold is $3.60 weaker at $1,334; Energies are mostly lower and the $ Index is at 80.155, off .060

·         T-storm Weather: Heavy thunderstorms affect the northern one-third to one-half of corn and soybeans in Argentina through today as a cool front sweeps northward.  Drying is already underway to the south, and a cool pattern with below-average rainfall follows. The lack of rain will improve conditions for sunflower harvesting, but coolness limits evaporation rates.  In Brazil and Paraguay, scattered thunderstorms form at times through the next 7-10 days as cool fronts drift northward and dissipate.  Near- to above-average rainfall is generally expected with mixed impacts on harvesting

·         Mar Corn Steady at $4.5150; May Down $.0025 at $4.5750  The funds sold 2 K on Monday    

·         Mar SB Down $.0575 at $13.8075; May SB Down $.0550 at $13.6950.  Funds bought another 8 K SB, 7 K SMB and sold 2 K SBO

·         Mar Wheat Steady at $6.1775; May Wheat Up $.0050 at $6.1750.  The funds bought 8 K on Monday

CORN/SORGHUM

·         ATI Research: Cumulative corn export sales of 1.39Bbu are 87% of the USDA forecast, an all-time high for mid-Feb

·         ATI Research: 13/14 corn carryout down 27mbu vs. last week to 1.499Bbu; 14/15 down 114 million to 1.832Bbu 

·         Export Inspections; Corn, 31.2mbu (34.6 needed), China took zero.  Milo, 0.2 (3.6) with China in for 176 thou bu

·         T-storm Weather: Completely dry weather would be ideal for Argentina corn given rain of 9.0”-14.0” since mid-Jan

SOYBEANS/WHEAT

·         ATI Research: 13/14 soybean carryout down 5mbu vs. last week at 136mbu; 14/15 down 94 million to 224mbu

·         Export Inspections: Soybeans, 46.7mbu (7.1 needed) with China taking 25.1

·         ATI Research: 13/14 all wheat carryout unchanged vs. last week at 575mbu; 14/15 also unchanged at 667mbu

·         Export Inspections: Wheat, 15.7mbu (22.9 needed)

·         T-storm Weather: Less than 10% of U.S. HRW wheat at risk of winterkill this week due to protective snowpack

ENERGY

·         Energies are generally lower:  QCLJ14, -$0.98 at $101.84; QRBJ, -$0.0070; QNGJ, +$.065 andQHOJ, -$.0092

·         Cash ethanol markets were firmer to begin the week: Chicago up 4 ¾; Gulf jumped 26; NY soared 30 ½; Tampa was up 6 ½; Dallas gained 7; and LA prices were 1 ½ higher at $2.63 per gallon

·         RINs were mostly steady: 2012’s unchanged at 55-58; 2013’s steady at 57-58; and 2014’s down ¼ to 54-55 ½

·         The March RBOB/March ethanol spread narrowed in almost 7 cents, to .6936/gallon on Monday

LIVESTOCK/POULTRY                    ​                        &​nbsp;               

·         Choice boxed beef values gained $2.07 yesterday and are up $4.84 from a week earlier

·         The USDA 5-area weekly average steer price for last week was $145.54, up $3.65 from the week before

·         The USDA pork carcass cutout value gained $1.23 yesterday and has increased $4.28 over the last three trading days

·         The USDA’s Iowa/Minnesota average cash lean hog price gained 67-cents yesterday to $94.20

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