HIGHLIGHTS
· MARKET TREND: CZ, Up $.0075; SF, Down $.0150; WH, Down $.0225; KWH, Up $.0150
· Yesterday’s weakness in raw material prices—notably oil-- is pressuring the equity markets this morning. In Asia, Shanghai closed down 1.89%; the Hang Seng was 1.34% weaker and the Nikkei ended off 1.04%. The trend is continuing in Europe where the DAX is leading the way down, off 1.14%; the CAC 40 is .93% lower and the FTSE, .73% to the downside. U.S. pre-markets have a negative slant: DOW futures off 113; NAS, down 33 ½ and the S&P 500, 14 ¼ lower. Outside markets: the $ Index is ever-so slightly weaker, off .024 at 98.645; energy is mostly higher this morning and gold is $3.70 cheaper at $1,071.70.
· T-storm Weather: A few thunderstorms dot northern areas of Brazil through today, but many areas stay dry with well-organized rainfall unlikely. Thereafter, upper-level high pressure establishes across the region, further limiting thunderstorms and helping maximums to return to the mid-90s into next week. A cool front potentially helps thunderstorms to return to the region after Dec. 15, but several uncertainties exist and it will take more time to determine coverage and amounts later this month
· CZ, Up $.0075 @ $3.6925; CH, Up $.01 @ $3.74 The funds sold 8 K to begin the week. Del’y: 0 Corn
· SF, Down $.0150 @ $8.81; SH, Down $.0150 @ $8.8425. Funds: sold 8 K SB; 4 K SBM, 4 K SBO. Del’y: 348 SBO
· WZ, Down $.0225 @ $4.68; WH, Down $.0225 @ $4.8050 The funds bought 3 K on Monday. Del’y: 1 HRW; 242 SRW
CORN/SORGHUM        
·   ATI Research: U.S. corn balance sheet; 15/16 carryout steady at 1.808 bbu; 16/17 carry-out estimated at 1.642 bbu
· ATI Research: U.S. sorghum balance sheet; 15/16 carryout steady at 52 mbu; 16/17 carry-out estimated at 58 mbu
· ATI Research: U.S. 2015/16 corn reported under loan as of Dec. 7 was 366.1 mbu. This is up 98.3 mbu (37%) from the 267.8 mbu of 2014/15 corn reported under loan at this time last year
· USDA export inspections: Year-to-date U.S. corn exports of 285 mbu are 25% lower compared to last year’s 379 mbu. This is the slowest pace of exports in 3 years
SOYBEANS/WHEAT
· ATI Research: U.S. soybean balance sheet; 15/16 carryout steady at 485 mbu; 16/17 carry-out estimated at 343 mbu
· USDA export inspections: Year-to-date U.S. soybean exports of 803 mbu are down 8% from last year’s 873 mbu total
· ATI Research: U.S. 2015/16 soybeans reported under loan as of Dec. 7 was 77.2 mbu. This is up 27.6 mbu (56%) from the 49.5 mbu of 2014/15 soybeans reported under loan at this time last year
· ATI Research: U.S. SRW wheat balance sheet, 15/16 carryout at 153 mbu vs. 1545 million for 14/15
· T-storm Weather: Wetness is beginning to diminish within the U.S. HRW and SRW wheat belts, though a majority was considerably wetter than normal over the last 30 days
ENERGY
· Firmer: CLF16, +$0.42 $38.07; EBF, +$0.65; EBF-CLF, $3.33, +$.25; RBF, +$.0180; NGF, -$.019; HOF, +$.0064
· Cash ethanol markets were noticeably weaker on Monday: Chicago down 3 ¼; New York off 4; Gulf eased 4 ½; Dallas declined 3; Tampa slipped 1 ½; and LA was 3 lower at $1.55 ½ per gallon
· Ethanol RINs firmer: 2014’s up ¼ to 72 ½ -73 ½; 2015’s added ¾ to 72-73; and 2016’s increased 1 to 72-73
· The Jan RBOB/Jan Ethanol inverse rose $.0188 on Monday to -$.2576 per gallon
LIVESTOCK/POULTRY    
· Choice boxed beef increased 27-cents on Monday but are down $2.78 vs. last week
· 5-Area Weekly Weighted Average Steer price down $2.95 last week to $123.39/cwt and is $43.44 lower vs. last year
· On Monday, USDA mandatory pork carcass cutout decreased 44-cents but is still a penny firmer vs. a week ago
· CME Lean Hog Index was $0.08 lower at $56.22. December futures down $1.575 and are $0.745 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather