HIGHLIGHTS
· MARKET TREND—Firmer: CK, up $.0225; SK, up $.0675; WK, up $.0575; KWK, up $.06
· MACRO—Trump momentum returns to the markets, speech well accepted; much data out this morning. ASIA—Firmer: Nikkei, +1.44%; Shanghai, +0.15%; Hang Seng, +0.15%;EUROPE—Higher: FTSE, +0.93%; DAX, +1.40%; CAC, +1.44%. Wall STREET-Futures are up sharply: DOW, +91; S&P, +12.25; NASDAQ, +34.50. EXTERNALS: $ Index, +0.586 @ 101.715; Gold, -$9.10 @ $1,245; and April Crude, +$0.12 @ $54.13. Del’y: C, 0; SB, 565; SBM, 254; SBO, 844; HRW, 142; SRW, 719
· T-storm Weather: Numerous cool fronts impact central and northern areas of Brazil over the next two weeks, triggering thunderstorm and resulting in a continuation of above-normal rainfall; 3.50" to 7.00" is most probable with the potential for higher amounts. Scattered thunderstorms affect Argentina Thu.-Fri. when the last in the series of storm systems pass, producing 0.75" to 1.50" of rain in most areas, followed by one week of dry and cool weather
· Corn: CK up $.0225 @ $3.76; CH up $.0325 @ $3.70. The funds bought 7 K on Tuesday
· SB: SK up $.0675 @ $10.4250; SH up $.0575 @ $10.3075. Funds: bot 7 SB; 8 SBO, sold 2 SBM. Board Crush: 0.77, +4; LY: $.55 ½
· Wheat: WK, up $.0575 @ $4.4950; WH up $.0375 @ $4.2850. Funds bought 5 K yesterday
CORN/SORGHUM
· December 2017 corn futures on Tuesday traded $4.04—the highest price for the contract since June 28, 2016
· The period for utilizing December 2017 corn futures to determine the projected 2017 crop insurance price for corn concluded on Tuesday. This year’s final average is $3.96 compared to $3.86 in 2016
· Consultant: Argentina’s corn production estimate is unchanged this week at 36.0 MMT. Soil moisture in Buenos Aires province has been recharged, but in some areas excess moisture has kept tractors and sprayers out of the fields
· Ethanol margins: $0.19 per gallon—up from $0.17 last week but below $0.26 in 2016. EIA report at 9:30 AM CST
SOYBEANS/WHEAT
· The period for utilizing November 2017 soybean futures to determine the projected 2017 crop insurance price for soybeans concluded on Tuesday. This year’s final average is $10.19 compared to $8.85 in 2016
· Consultant: Brazil’s soybean production estimate is unchanged at 105.0 MMT, although it could move higher by several million tons if the soybeans in Rio Grande do Sul and in northeastern Brazil turn out as good as they look
· NWS forecast for March: Above- to much-above normal temps for Central Plains HRW wheat, below normal precip
· T-storm Weather: The climate of U.S. HRW wheat in the Plains usually turns sharply wetter from late-March forward
ENERGY
· Mixed: CLJ17, +$0.12 @ $54.13; EBK, +$0.20; EBK-CLK, $2.13, +$0.05; RBJ, -$.0240;NGJ, -$0.005; HOJ, +$.0091
· EIA Report Estimates (API): crude oil, +2.4 (+2.5); Gasoline, -1.6 (+1.8); Distillates, -0.9 (-3.7)
· A mostly firmer trend was noted in cash ethanol markets on Tuesday: Chicago up 3; New York and Gulf added 1 ½; Tampa climbed ½; Dallas gained 1; but LA was ½ lower at $1.69 ½ per gallon
· Ethanol RINs sharply lower on Tue: 2015’s fell 9 ¼ at 28-43; 2016’s off 9 ¼ at 29 ½-44 ½; & 2017’s down 9 ¼ to 30-45
· The Mar RBOB/Mar ethanol spread saw a $.0407 swing with ethanol now at a premium, -$0.01300/gallon
LIVESTOCK/POULTRY    
· Choice boxed beef values firmed $3.25 Tue.—largest one-day increase since Dec. 14—& are up $12.92 vs. last week
· At $204.73, choice boxed beef has increased $16.39 (8.7%) the past 9 trading days & is the highest since July 14, 2016
· USDA mandatory pork carcass cutout gained $1.87 on Tuesday to $81.67, but is still $2.19 lower vs. a week ago
· CME Lean Hog Index fell $0.83 on Tue. to $75.89. April futures declined $0.525 and are $8.29 below the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather