HIGHLIGHTS
· Market Trend: Corn, Up 1-2; Soybeans, Up 3-4; Wheat, Up 1
· Strength in the Yen pushed the Nikkei .37% lower but developments in the FSU and Greece’s willingness to sit at the negotiating table lifted the Hang Seng 1.07% and Shanghai, .98%. QIV Euro zone growth rose .3%, exceeding expectations. That and Greece’s up-coming meetings with the EU, ECB and IMF pushed the DAX (+.54%), the CAC 40 (+.66%) and the FTSE (+.59%) all higher. Pre-market barometers have the DOW up 33; the S&P, +3 and the NAS, +11. Data out today includes the U of MI consumer sentiment index. Externals: gold, +$3.10 at $1,223.20; energy futures are mostly higher and the $ Index is .002 highere at 94.20
· T-storm Weather: The remnant of a cool front focuses thunderstorms on / adjacent Mato Grosso do Sul and Parana into early next week, then across key areas of Center-West and Southeast Brazil for several days next week. Therefore, near- to above-average rainfall affects most of Brazil, slightly slowing soybean harvesting and second-crop corn planting, while aiding second-crop corn growth. A drier pattern likely follows from late next week forward as a brief flash of the upcoming dry season occurs, which is not atypical of late-February (but is more common from March through April)
· Mar Corn Up $.0150 at $3.8450; May Up $.0125 at $3.9225. The funds sold 5 KThursday
· Mar SB Up $.0325 at $9.87; May Up .0425 at $9.91. Funds bought 3 K SB; 2 K SBM and 3 K SBO
· Mar Wheat Up $.01 at $5.2225; May Up $.0050 at $5.2025. Fund selling totaled 4 K yesterday
CORN/SORGHUM ; ;
· T-storm Weather: Highest rainfall amounts in Brazil through days fall in Mato Grosso do Sul and Parana, which includes 39% of second-crop corn production in the country (planting typically occurs now)
· USDA Long-Term Projections: About 35% of total U.S. corn use to go to ethanol production over the next 10 years
· Outstanding U.S. corn export sales as of Feb. 5: 677 mbu vs. 744 mil last year; sorghum, 158 mbu vs. 84 mil last year
· Year-to-date total export sales commitments of sorghum are 291 mbu, or 97.1% of the USDA forecast of 300 million
SOYBEANS/WHEAT
· T-storm Weather: Near-average rain of around 1.00” forecast for Argentina Feb. 16-22, keeping soybeans moist
· USDA Long-Term Projections: U.S. share of global soybean trade to decline from 42% in 2015/16 to about 33% in 2024/25 due to competition from South America. Beyond 2015/16, Brazil is pegged to be largest soybean exporter
· Outstanding U.S. soybean export sales as of Feb. 5: 295 mbu vs. 371 mil last year
· USDA Long-Term Projections: U.S. wheat plantings are projected to decline 8% over the next decade
· Outstanding U.S. wheat export sales as of Feb. 5: 195 mbu vs. 210 mil last year
ENERGY
· Futures are mostly firmer: QCLH15, +$0.69 at $51.90; QRBH, +0.0165; QNGH, -$.01; andQHOH, +$.0123
· Cash ethanol markets were lower on Thursday: Chicago down 2; New York eased ¼; Gulf and Dallas off 2 ½; Tampa slipped 3; and LA was ½ lower at $1.57 ½ per gallon
· RINs were steady to weaker: 2013’s unch at 69-71; 2014’s steady at 71-72 ½; and 2015’s down ¼ to 69 ½-72
· The Mar RBOB/Mar Ethanol spread widened nearly 6 ¼ cents to $.1595/gallon as ethanol output recovered
LIVESTOCK/POULTRY    
· On Thursday, choice boxed beef values declined 64-cents and are down $2.08 vs. last week
· From the calendar year 2015 peak of $263.81 posted on Jan. 14, choice boxed beef values have declined $24.71
· On Thursday, the USDA mandatory pork carcass cutout value dropped $1.31 and is $2.19 lower vs. a week ago
· CME Lean Hog Index $0.91 lower to $63.91. February futures up $0.7250 to $61.95 and is $1.96 below the index
· Broiler egg set for the week ending Feb. 7 was up 0.7% from the previous week and 3% higher vs. last year
Sources: Bloomberg, Dow Jones, AP, T-storm Weather