HIGHLIGHTS

·         Market Trend—Corn, Up ½ to 1: Soybeans, Up 2-3 Wheat, Up ½ to 1 

·         Yesterday’s sell-off on Wall Street has overseas markets mixed this morning.  Shanghai lost 1.2%; the Kospi fell 1.1% and the Hang Seng dropped 2.3% with most other Asian markets weaker.  Europe, however, is better with the FTSE, DAX and CAC-40 all in the green.  Futures for U.S. indices are mixed:  the Dow is up 9; the S&P is 1 higher and the Nasdaq just turned a ¼ point negative.  Outside markets find gold up $5.50; crude is narrowly lower and the $ Index is off .033 at 80.755

·         T-storm Weather: Scattered thunderstorms focus on southern Brazil and Paraguay over the next 5-10 days as the remnant of a cool front lingers.  Below-average rainfall occurs to the north in Center-West and Southeast Brazil as upper-level high pressure develops.  Below-average rainfall also occurs to the south in key areas of central and southern Argentina with the next chance for thunderstorms around Wednesday-Thursday.  Some heat also re-develops in Argentina next week as upper-level high pressure re-establishes for a few days

·         Mar Corn Up $.0075 at $4.2125; May Up $.0075 at $4.2975.  The funds sold 2 K on the 1^st trading day of the new year

·         Jan SB Up $.02 at $12.89; Mar SB Up $.02 at $12.72.  The funds sold 10 K SB, 8 K SBM and 4 K SBO. Del’ys:  1 SBM, 180 SBO

·         Mar Wheat Up $.0075 at $5.9775; May Wheat Up $.0075 at $6.0450.  The funds sold 5 K yesterday

CORN/SORGHUM

·         Export Sales at 7:30 AM CST.  Trade expects 26 to 33mbu corn.  Year-to-date aggregate export sales are a 6-year high

·         EIA Weekly Petroleum Status Report at 9:30 AM CST.  Ethanol production in latest report was 926 thou barrels per day

·         ATI Research: Annual amount of corn used to produce ethanol pegged at 5.051Bbu vs. latest USDA estimate of 4.950

• T-storm Weather: Most corn across Center-West and Southeast Brazil received adequate rainfall in recent weeks
• December 2014 corn futures ended Thurs. at $4.48 ¾; December 2013 corn futures was $5.92 ¼ on this date last year

SOYBEANS/WHEAT

• Export Sales: Trade expects 18 to 29mbu soybeans; soymeal, 50-100 K MT; soyoil, 10-40 KMT

·         ATI Research: Year-to-date soybean export sales are record high and near the annual USDA forecast already.  This raises the possibility of a further increase in the USDA estimate and/or substantial cancellations

·         Soybean harvest has begun in Mato Grosso, Brazil with expectations for a bumper harvest

·         Export Sales: Trade looking for 13 to 20mbu for all wheat

·         ATI Research: A 5-10% jump in SRW wheat acreage vs. last year possible in Jan. 10 USDAWinter Wheat Seeding

·         Nearby Chicago wheat futures traded below $6.00 on Thursday for the first time since May 15, 2012 

ENERGY

·         Energy markets—mixed:  QCLG14,-$0.03 to $95.41; QRBG, +$0.0114; QNGG, -$.044 andQHOG, +$.0098

·         Cash ethanol markets were mixed on Thursday compared to Tuesday: Chicago was up 6; Gulf gained 5 ½; Dallas and Tampa were both down ½; New York was off a penny; and LA was 2 lower to $2.54 ½ per gallon

·         EIA Stocks estimates (API): Crude, -2.2 mb (-5.7); gasoline, +1.2 (+3.3); distillates, -0.3 (+2.6)

·         RINs were weaker: 2012’s were 2 lower to 30 ½-32; 2013’s off 1 at 31 ½-33; & 2014’s also down 1 to 31 ½-33

·         The January RBOB/January ethanol spread narrowed in nearly 13 cents, to $.7450 per gallon 

LIVESTOCK/POULTRY                            &nb​sp;                       &nbs​p;      

• Cash cattle traded at a record high $137 yesterday, up $3 to $5 from last week.
• After gaining $3.96 over the previous five trading days, Choice boxed beef values eased 10-cents yesterday
• After firming 62-cents over the previous two days, the USDA pork carcass cutout value eased 16-cents yesterday
• The USDA’s Iowa/Minnesota average cash lean hog price gained $1.62 yesterday to $78.75

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