HIGHLIGHTS
· MARKET TREND: CZ, Down $.01; SF, Down $.0450; WZ, Up $.24 KWH, Steady
· Markets are again mostly firmer, biding time ahead of today’s ECB policy announcement. The Nikkei edged up .01%; Shanghai closed 1.37% higher while the Hang Seng retreated .28%. Europe has made significant gains: FTSE, +.30%; DAX, +.91%; CAC 40, +1.30%. Futures suggest a positive U.S. opening: DOW, +95; NAS, +32.35 and the S&P 500, +12. Initial jobless claims are out today along with both ISM non-mfg and factory order data. Outside markets have the $ Index at 100.425, up .41; gold is below $1,050, down $4.10 and Jan WTI is up 65+ cents per barrel
· T-storm Weather: Mainly dry and hot weather continue into Saturday across northern areas of Brazil. Scattered thunderstorms follow Sunday-Wednesday, producing 1.00" to 2.00" of rain. It remains most probable for dry and hot upper-level high pressure to re-establish for at least several days later next week and weekend, ultimately keeping rainfall totals between 1.00 to 2.00" over the next 10 days (around half of normal) and increasing the importance of unknown weather at mid-month
· CZ, Down $.01 @ $3.63 CH, Down $.01 @ $3.6925. The funds sold 3 K at midweek. Deliveries, 0 corn
· SF, Down $.0450 @ $8.877525; SH, Down $.0475 @ $8.9025. The funds bot 2 K SB; 1 K SBM, 3 SBO. Del’y: 0 SB, 0 SBM, 332 SBO
· WZ, Up $.0225 @ $4.5450; WH, Up $.0025 @ $4.6750. The funds sold 2 K. Del’y: 86 HRW; 299 SRW
CORN/SORGHUM         ;
· Export Sales to be released at 7:30 AM CST. Trade expects 20-43 mbu for 15/16 corn
· ATI Research: The Black Sea is currently the lowest cost supplier of spot corn at $169 FOB, followed by Argentina at $171. The U.S. Gulf and Brazil are at $173
· T-storm Weather: Most areas in Argentina will be seasonable to cool and dry the next 10 days. Rainfall was adequate to ample in recent weeks; thus, upcoming drying is well-timed for late-corn planting
· Ethanol grind: 956,000 barrels/day for week end Nov. 27—down 5.2% v. last week’s record & 0.6% lower v. last year
SOYBEANS/WHEAT
· Export Sales report. Trade expects 29-44 mbu for 15/16 soybeans; soymeal, 150-300 K MT; and soyoil, 10-25 K MT
· January 2016 soybean futures closed at $8.92 ¼ Wednesday--highest settlement price for the contract since Oct. 23
· T-storm Weather: Above-normal rainfall of 2.00”-4.00” is forecast across South Brazil and Paraguay through Sunday
· New contract lows were established on Wednesday for Chicago and Kansas City December wheat futures
· Export Sales report. Trade expects 9-18 mbu for 15/16 all wheat
· T-storm Weather: A large system develops rain across eastern third to half of the U.S. Dec. 10-13. While its unneeded for SRW wheat, sustained drying leading into the period precludes the potential for excessive wetness to develop
ENERGY
· Higher: CLF16, +$0.66, $41.40; EBF, +$0.95; EBF-CLF, $2.80, +$.25; RBF, +$.0089; NGF, -$.011; HOF, +$.0401
· Cash ethanol markets showed a weaker tone on Wednesday: Chicago down 1 ¾; New York eased 1 ½; Gulf off ½; Tampa slipped 2 ½; Dallas declined 2 ¾; and LA was a nickel lower at $1.57 per gallon
· Ethanol RINs mixed: 2014’s up 1 ¼ to 77 ½ -84; 2015’s down ¼ to 77-83 ½; and 2016’s eased ½ to 78-83 ½
· The Jan RBOB/Dec Ethanol inverse again widened, adding $.0459 and is now at -$.2019/gallon
LIVESTOCK/POULTRY    
· On Wednesday, choice boxed beef increased 27-cents but are a penny lower vs. a week ago
· U.S. daily cattle slaughter for Wednesday was estimated at 105,000 head vs. 112,000 last week and 107,000 last year
· On Wednesday, USDA mandatory pork carcass cutout eased 21-cents but is up 43-cents compared to the prior week
· CME Lean Hog Index was $0.27 higher at $55.81. December futures $0.60 lower but are $3.54 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather