HIGHLIGHTS
· MARKET TREND: CZ, Down $.01; SF, Up $.02; WZ, Up $.0250; KWZ, NA
· Global equity markets are mostly higher ahead of tomorrow’s ECB meeting & U.S. jobs #’son Friday. Fed Chairperson Yellen has speaking engagements today/Thursday & traders will be sifting through her remarks for insight on rate hikes. Shangia closed up 2.33%; the Hang Seng rose .44% while the Nikkei slipped .37%. Mid-day trade in Europe is higher, led by a .55% boost in the FTSE; the CAC 40 is up .33% and the DAX, +.12%. Futures suggest a positive start for Wall Street: DOW, +21; NAS, +6.75; S&P, +2.25. Externals: $ Index, +.265 @100.105; gold, +$3 at $1,066.80; Jan WTI is down 45 cents a $41.40/barrel
· T-storm Weather: Dry and very warm to hot weather occur into the weekend for key areas of Center-West Brazil. Changes occur within Sunday-Tuesday when a cool front shifts to the north and triggers seasonably-scattered thunderstorms, but only 1.00" to 1.50" of rain is expected. While seemingly significant, if better rain chances do not immediately follow, the upcoming 10-day period will only have received 1.00" to 1.50", which is considerably drier than the 2.50" to 3.00" that is normal of the period
· CZ, Down $.01 @ $3.66 CH, Down $.0125 @ $3.7250. The funds bought 2 K on Tuesday. Deliveries, 0 corn
· SF, Up $.02 @ $8.9125; SH, Up $.0225 @ $8.9375. The funds bot 5 K SB; 0 K SBM, 5 SBO. Del’y: 0 SB, 0 SBM, 230 SBO
· WZ, Up $.0250 @ $4.59; WH, Up $.0050 @ $4.72. The funds again sold 3 K. Del’y: 198 HRW; 478 SRW
CORN/SORGHUM         ;
· ATI Research: U.S. 2015/16 corn reported under loan as of Nov. 30 was 295.5 mbu. This is up 77.6 mbu (36%) from the 217.9 mbu of 2014/15 corn reported under loan at this time last year
· ATI Research: Weekly U.S. corn exports for the balance of December are forecast at 15-20 mbu vs. 17.1 mbu last year
· Crop consultant: Heavy rain has recently fallen in southern Brazil has actually benefitted full-season corn in the region
· Ethanol margins: $0.23 per gallon--unchanged vs. last week but below $1.10 last year. EIA report at 9:30 AM CST
SOYBEANS/WHEAT
· ATI Research: U.S. 2015/16 soybeans reported under loan as of Nov. 30 was 68.7 mbu. This is up 25.4 mbu (59%) from the 43.3 mbu of 2014/15 soybeans reported under loan at this time last year
· ATI Research: Last year, U.S. soybean exports averaged 71 mbu per week for the up-coming 4-week period vs. 96 for the previous 4-week period. The current 4-week avg. is 72.4 with 60-65 anticipated for the up-coming 4-week period
· ATI Research: U.S. all wheat exports are pegged to continue to range from 10-15 mbu per week short-term
· T-storm Weather: Dryness is no longer an issue for U.S. HRW and SRW wheat because only 1% and 12% of production were drier than normal over the last 60 days
ENERGY
· Lower: CLF16, -$0.45, $41.40; EBF, 0$0.55; EBF-CLF, $2.49, -$.10; RBF, -$.0203; NGF, -$.034; HOF, -$.0086
· EIA estimates: crude, -0.3 (API: +1.6); Gasoline, +1.0 (+0.9); Distillates, +0.1 (+2.7)
· A firmer trend was noted in cash ethanol markets on Tuesday: Chicago up 1 ¼; New York added 2 ½; Gulf climbed ¾; Tampa firmed 2; Dallas gained 2 ¼; and LA was ½ higher at $1.62 per gallon
· Ethanol RINs up sharply: 2014’s jumped 27 ¾ to 69 -90; 2015’s soared 29 ¼ to 71-90; & and 2016’s up 29 ½ to 72-90 ½
· The Dec RBOB/Dec Ethanol inverse widened further, $.0247 to -$.1560/gallon
LIVESTOCK/POULTRY    
· Choice boxed beef were $1.94 lower on Tuesday but are unchanged compared to the prior week
· February 2016 live cattle futures closed at $134.625 Tues., the highest settlement price for the contract since Nov. 12
· On Tuesday, USDA mandatory pork carcass cutout declined $1.37 and is $1.11 lower vs. a week ago
· CME Lean Hog Index was $0.08 lower at $55.54. December futures up $1.525 and are $4.41 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather