HIGHLIGHTS
· Market Trend: Corn, Up 4; Soybeans, Up 8-9; Wheat, Up 4-5
· Asia traded mixed overnight with higher oil prices said to be the catalyst: Japan’s Nikkei lost 1.27%; the Hang Seng rose .29% while Shanghai catapulted 2.5% higher. Greece plans to run a permanent budget surplus/track-down wealthy tax evaders: CAC and FTSE gain 1.3%; DAX up 1.2%. Pre-markets are higher in the U.S.: DOW futures, +74; NAS, +16 and the S&P 500, +9.50. QCL is up nearly $1.80 with the entire energy complex firmer; Gold is $5.50 dearer at $1,282/oz and the $ Index is nominally weaker, 94.655
· T-storm Weather: Several waves of energy and cool fronts trigger thunderstorms in varying areas of South America over the next 7-10 days. Most notably, above-average rainfall occurs in parched areas of Center-West, Northeast, and Southeast Brazil – especially from Wednesday forward; immature first-crop corn and soybeans benefit, but soybean harvesting and second-crop corn planting slow. Otherwise, the exact location and timing of thunderstorms to the south is more difficult to assess, but near-average rainfall remains most probable (aiding drier areas, and limiting the potential for excessive wetness in wettest areas).
· Mar Corn Up $.0425 at $3.74; May Corn Up $.0425 at $3.82. The fund trading was even on Monday
· Mar SB Up $.0875 at $9.6825; May Up $.0875 at $9.75. Funds were even on SB Monday; sold 3 K SBM and bought 6 K SBO
· Mar Wheat Up $.05 at $4.9750; May Up $.0450 at $5.0175. The funds sold 5 K to begin the week
CORN/SORGHUM    
· ATI Research: U.S. corn balance sheet; 14/15 carryout up 32 mbu compared to last week to 1.798 Bbu
· ATI Research: U.S. sorghum balance sheet; 14/15 carryout unchanged at 32 mbu
· T-storm Weather: Corn in southern Buenos Aires, Argentina benefits from rain over the next 7-10 days, but northeast Argentina receives unneeded rainfall
· December 2015 corn futures closed at $4.01 on Monday. The last time it settled below $4.00 was Oct. 24, 2014
SOYBEANS/WHEAT
· ATI Research: Updated U.S. soybean balance sheet; 14/15 carryout unchanged at 400 mbu
· T-storm Weather: Widespread coverage of near- to above-average rainfall of 2.50” to 4.50” occurs through 7-10 days across much of Center-West, Northeast and South Brazil to diminish intensity of drought and aid immature soybeans
· ATI Research: U.S. soybean exports forecast to average 50-55 mbu per week near-term vs. approx. 45 million last year
· ATI Research: U.S. HRW wheat balance sheet, 14/15 carryout at 263 mbu; 15/16 carryout is forecast at 313 mbu
· T-storm Weather: 1” to 3” of snow occurs in varying areas within today-Wednesday, especially in Nebraska and a large swath of the Corn Belt (including deeply snow-covered areas)
ENERGY
· Futures are higher: QCLH15, +$1.85 at $51.42; QRBH, +$0.0459; QNGH, +$.020; and QHOH, +$.05
· A mostly firmer trend was seen in cash ethanol markets on Monday: Chicago added 2 ½; New York and Tampa gained 4; Gulf and Dallas climbed 1 ½; and LA was steady at $1.50 ½ per gallon
· RINs were weaker: 2013’s off 2 at 69-71; 2014’s down 1 ½ at 70 ½-72; and 2015’s eased 1 ¾ to 70-71
· The Mar RBOB/Mar Ethanol spread gained over 4 ¾ cents to $.1406/gal, premium RBOB, ideas of rising etoh supplies
LIVESTOCK/POULTRY    
·   On Monday, choice boxed beef values increased 17-cents but are still down $8.80 vs. a week ago
· 5-Area Weekly Weighted Average Steer price declined 8-cents last week to $159.36/cwt but is up $14.02 vs. last year
· The USDA pork carcass cutout value decreased 48-cents on Monday and is $6.53 lower compared to last week
· CME Lean Hog Index 78-cents lower at $70.35. February futures $1.15 lower to $66.325 and $4.025 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather