HIGHLIGHTS
· Market Trend: Corn, Up 2-3; Soybeans, Up 10+, led by Mar; Wheat, 5-6 Higher
· China reported January consumer price inflation steady from a month earlier and up 2.5% from a year ago; food costs slowed from 4.1% to 3.7%. These #’s helped lift Shanghai .8% and the Hang Seng, +.6%. The Nikkei however, fell 1.5%. In Europe, a sluggish start gave way to higher values as the Zone grew at .3% in QIV, above consensus. The DAX and CAC-40 are currently up .6% and .5% with the FTSE nearly flat. U.S stock index futures were looking for direction ahead of this morning’s Jan industrial production and U of MI consumer sentiment. Gold, up $13; the energies are again mixed and the $ Index is .193 weaker at 80.185
· T-storm Weather: Upper-level high pressure is shifting away from Brazil, which will allow thunderstorms to form on most of the next 7-10 days. The main uncertainty regards the location and coverage of thunderstorms. Near- and above-average rainfall is most probable across Center-West Brazil, South Brazil, and Paraguay with highest overall coverage and amounts in Mato Grosso, while lower amounts occur in Southeast Brazil. GFS output is wetter than our forecast (especially across Center-West and Southeast Brazil), but the western flank for upper-level high pressure should surpass amounts in at least Southeast Brazil. In Argentina, thunderstorms focus on / near far western corn and soybean areas of San Luis through Saturday
· Mar Corn Up $.0250 at $4.43; May Up $.02 at $4.4850. The funds bought 2 K on Thursday
· Mar SB Up $.11 at $13.5525; May Up $.10 at $13.4050. Funds bought 8 K SB; 6 K SBM and 6 K SBO
· Mar Wheat Up $.06 at $6.0150; May Wheat Up $.0450 at $5.9850. The funds bought a total of 5 K yesterday
CORN/SORGHUM
· ATI Research: Another week of very strong corn export sales: 52.8mbu were above the trade range of 32 to 47mbu. Year-to-date sales of 1.362Bbu represent 85% of the annual USDA forecast—a record for this time of year
· Milo export sales of 165 thou bu were a little light. China bought 181 thou bu but offset by cancellations by Unknown
· T-storm Weather: Unseasonable coolness dominates in Argentina through Sunday as surface-level high pressure keeps maximums in the 60s and 70s to provide stress-free temperatures for weather-sensitive corn
· March 2014 corn futures traded $4.40 ½ on Thursday compared to $6.87 ¼ for March 2013 futures one year ago
SOYBEANS/WHEAT
· March 2014 soybean futures closed at $13.44 ¼ on Thursday, the highest closing price since September 13, 2013
· ATI Research: Soybean export sales for 13/14 of 6.4mbu were below trade ideas (22-35) as cancellations by Unknown (China?) finally kicked in
· T-storm Weather: Above-normal rain to slow first-crop soybean harvesting in Mato Grosso, Brazil the next 7-10 days
· ATI Research: Another week of respectable all wheat export sales at 21.9mbu vs. 17-28 expected. Although the total was down 7% from the previous week it reflected a 12% increase compared to the prior 4-week average
· T-storm Weather: Key HRW wheat areas of the Plains stay dry over the next week as energy bypasses the region
ENERGY
· The energies are mixed: QCLH14, -$0.410 at $99.94; QRBH, -$0.0087; QNGH, +$.112 and QHOH, +$.0073
· A firmer trend developed in cash ethanol markets on Thursday: Chicago and Gulf were up 2 ½; Tampa and Dallas gained 6 ½; New York climbed 14 ½; and LA increased 4 cents to $2.47 ½ per gallon
· RINs were higher: 2012’s gained 2, to 55-57; 2013’s up 2 to 56-58; and 2014’s increased a penny to 54-56
· The March RBOB/March ethanol spread firmed 2 ½ cents, to $.7642/gallon yesterday; blending a 7-week high
LIVESTOCK/POULTRY  
· Light cash cattle trading was reported in Kansas yesterday at $142, up $1 from last week
· After falling $3.11 over the previous two days, Choice boxed beef values bounced 5-cents yesterday
· The USDA pork carcass cutout gained 70-cents yesterday and is at its highest value since November 12
· The USDA’s Iowa/Minnesota average cash lean hog price increased $1.97 yesterday to $85.43
Sources: Bloomberg, Dow Jones, AP, T-storm Weather