HIGHLIGHTS
· Market Trend (FSA acreage worries): Corn, 8 Higher; Soybeans, 7-8 Higher; Wheat, 6 Higher
· Chinese Factory output growth slipped from 7.7% in Oct to 7.2% for Nov; Citigroup sees PRC economic growth falling below 7% in 2015, QIII 2014 hit a 5 year low. Performance suggests additional stimulus is possible: Shanghai, up .47%; Nikkei, +.66% while the Hang Seng lost .27%. IEA cuts 2015 global oil demand estimate. Mid-day Europe is lower: CAC-40, -1.73%; FTSE, -1.50% and DAX, -1.35%. So much for a happy Friday: DOW futures, off 118; S&P, down 12 ½; NAS, -31 ½. QCL, -$.50/bbl; gold, off $.40; $ Index, down ½ point to 88.475
· T-storm Weather: Some thunderstorms occur in dry portions of South Brazil and Paraguay the next 10 days, but surface-level high pressure off the coast limits coverage and amounts from this area southward through eastern Argentina. Instead, areas of heavy rain occur to the immediate west as thunderstorms drift into the pampas from the base of the Andes Mountains (similarly to how thunderstorms drift from the base of the Rocky Mountains in Colorado and then dissipate as dry air is encountered). Another multi-day stretch of heat is not foreseen for Argentina corn & soybeans; 5 of the last 8 days had a mean maximum of at least 90°F
· Dec Corn Up $.08 at $3.98; March Up $.08 at $4.0650. Dely: 75 Funds bought 5 K on Thursday
· Jan SB Up $.0650 at $10.5250; March Up $.0675 at $10.5550. Dely: 45 SBO. Funds: bought 6 K SB; 3 K SBM, 1 K SBO
· Dec Wheat, NA; March Up $.065 at $6.04. Dely: 1 SRW, 36 KW. The funds bought 4 K yesterday
CORN/SORGHUM      
· Outstanding U.S. corn export sales as of Dec. 4: 542 mbu vs. 694 mil last year and the 5-year avg. of 470 mil
· Outstanding U.S. sorghum export sales as of Dec. 4: 122 mbu vs. 67 mil last year and the 5-year avg. of 28 mil
· Year-to-date U.S. sorghum export sales to China as of Dec. 4 are 159 mbu compared to 41 million last year
· T-storm Weather: Conditions for corn planning in Argentina appear more favorable than previously going forward, though drying in South Brazil will need to be monitored. South Brazil accounts for 43% of first-crop corn production
SOYBEANS/WHEAT
· Outstanding U.S. soybean export sales as of Dec. 4: 651 mbu vs. 724 mil last year and the 5-year avg. of 541 mil
· T-storm Weather: Highest rainfall coverage and amounts focus on Center-West and Southeast Brazil through the next 10 days. Seasonably-heavy amounts of 2.00”-4.00” are forecast, which keep first-crop soybeans moist
· ATI Research: U.S. soybean meal exports during December are projected to average just under 300 K MT per week
· Outstanding U.S. wheat export sales as of Dec. 4: 184 mbu vs. 187 mil last year and the 5-year avg. of 197 mil
· T-storm Weather: Widespread rain would be ideal for U.S. HRW wheat production because coverage of deep-subsoil dryness sharply increased this week due to a lack of precip the last 60 days—now including 69% of production
ENERGY
· Futures are mixed: QCLF14, -$0.59 at $59.36; QRBF, +$0.0013; QNGF, +$.060; and QHOF, -$.0084
· Cash ethanol markets were firmer on Thursday: Chicago and Gulf climbed 5 ½; Dallas added 8; Tampa gained 9 ½; New York up 11; and LA was 9 ½ higher at $2.18 ½ per gallon
· RINs were mixed: 2013’s up ¼ to 59-60 ½; 2014’s off ½ to 60-61 ½; and 2015’s down 3/8 to 59 ½-60 ½
· January RBOB/January ethanol inverted further on weaker oil, up nearly 8 cents to $.1126/gallon
LIVESTOCK/POULTRY    
·  Choice boxed beef values declined $2.16 on Thursday, are down $6.63 vs. last week & at the lowest level since Oct. 24
· Asking prices for cash cattle in the South were firm at $168 on Thursday but trading activity was very slow
· USDA pork carcass cutout value decreased 95-cents Thurs., is $1.61 below last week and at lowest level since Feb. 6
· CME Lean Hog Index down $0.07 at $88.44. December futures up $0.275 to $87.55 & are $0.89 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather