HIGHLIGHTS
· MARKET TREND—higher-Arg rains-too little/too much: CH, up $.0275; SF, up $.1075; WH,up $.0550; KWH, up $.0550
· MACRO: Markets are mixed; data releases include Case-Shiller; the Dallas Fed and Consumer Confidence. ASIA-mostly lower: Nikkei, +0.03%; Hang Seng, -0.28%; Shanghai, -0.24%. EUROPE—slightly higher: FTSE, +0.06%; DAX, +0.11%; CAC, +0.06%. Wall STREET: Futures are steady to slightly higher: the DOW, flat; S&P, +0.50; NASDAQ, +3.25. EXTERNALS: $ Index, +.028 @103.030; Gold, +$5.50 @ $1,137.40; Feb Crude, +$0.14 @ $53.16
· T-storm Weather: Heavy rain of more to much-more than 1.00” expectedly focused on corn & soybeans in central & southern Argentina in recent days, especially on Sundaywhen a major thunderstorm dumped more than 3.00” in several key locations. Key areas of central & southern Argentina will now be dry over the next 5-7 days, with temps seasonable to cool through Wed. A period of heat develops in advance of the next system, which causes near- to above-normal rain to affect a large area Sun.-Mon.
· Corn: CH up $.0275 @ $3.4850; CK up $.0225 @ $3.5475. The funds sold 3 K on Friday
· SB: SF up $.1075 @ $9.9975; SH, up $.1075 @ $10.0825. Funds—Sold 6 SB, 3 SBO, 2SBM. Board Crush: $.71, +$.02; LY, $.53
· Wheat: WH up $.0550 @ $3.99; WK up$.0525 @ $4.12. Fund selling again totaled 2 Kon Friday
CORN/SORGHUM
· T-storm Weather: Northeast 20%-30% of first-crop Brazil corn forecast to stay drier/warmer than normal next 10 days
· Consultant: Rains over the last 10 days have helped to recharge soil moisture across Argentina corn, which is especially beneficial for the earlier planted crop that is now in its reproductive phase
· ATI Research: Support for corn feed/residual use may be seen from Friday’s USDAQuarterly Hogs and Pigs report, which pegged larger-than-expected hog inventory on Dec. 1. ATI still skeptical of USDA annual corn feeding estimate
· Export Inspections released at 10 AM CDT; Corn, 43.8 mbu needed; 30.3 last week. Milo—5.1 needed; 8.1 last week
SOYBEANS/WHEAT
· November 2017 soybean futures on Fri. closed at $9.81 ¼--one year ago, November 2016 futures settled at $8.90
· Consultant: Soybean production estimate for Brazil is unchanged at 103.0 MMT. For most of the country, recent weather has been beneficial for the soybean crop, with early harvest having already started in Mato Grosso
· Export Inspections released at 10 AM CDT: Soybeans, 26.0 mbu needed; 63.6 last week
· Export Inspections released at 10 AM CDT: Wheat, 18.3 needed; 17.6 last week
· T-storm Weather: Widespread rain and snow affected the central U.S. in recent days, notably including much of the HRW wheat belt where 0.25” to 0.50” was seen
ENERGY
· Lower: CLG17, +$0.14 @ $53.56; EBG, +$0.12; EBG-CLG, $2.02, -$.12; RBG, -$.0043;NGG, +$.09; HOG, +$.0019
· Cash ethanol markets were mixed on Friday: Chicago eased ½; New York and Tampa steady; Gulf and Dallas down ½; but LA was 3 higher at $1.85 per gallon
· Ethanol RINs declined: 2015’s, 2016’s and 2017’s all down 2 ½ at 84 ½-85 ½
· The carry in the Jan RBOB/Jan ethanol spread reversed course Friday, gaining $.04920 to +$0.06320/gallon
LIVESTOCK/POULTRY  
· Choice boxed beef values firmed 66-cents on Friday to $198.27, and are $3.64 higher compared to a week ago
· Cattle on Feed: Dec 1 on feed, 98.6% (98.5% avg est); Nov place, 115.0% (112.5%); Nov Marketed, 116.6% (116.4%)
· USDA mandatory pork carcass gained 68-cents Fri. to $80.59, is up $3.48 vs. last week & is the highest since Sep. 13
· CME Lean Hog Index was steady on Fri. at $58.18. February futures down $1.525 but are still $5.02 above the index
· Hogs and Pigs: All hogs & pigs, 103.7% (101.8% avg. est); breeding, 101.5% (100.3%); market, 104.0% (102.0%)
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather