HIGHLIGHTS
· MARKET TREND: Higher--CZ: Up $.04; SF: Up $.185; WZ: Up $.0525; KWZ: Up $.0475
· MACRO: World stock markets are posting strong gains on ideas that newly elected president Donald Trump will implement fiscal stimulus for the U.S. economy. ASIA: Weaker: Nikkei, +6.73%; Hang Seng, +1.89%. EUROPE:Higher following strength on Wednesday: FTSE, +0.63%; DAX, +0.98%. WALL STREET: Sharply higher: DOW, +118; S&P, +11; NASDAQ, +25. EXTERNALS: $ Index, +.306 @ 98.835; Gold, +$8.44 @ $1,281.04; Dec Crude, -$0.27 @ $45.00. Deliveries: 164 SB
· T-storm Weather: Heavy rainfall of 3.00" to 6.00" affects northern corn and soybean areas of Brazil through next week, increasing wetness and breaking dryness. Most other areas of South America also receive significant rainfall, though most occurs through Sunday-Monday as cool fronts pass (amounts mostly within 0.50" to 1.50"), followed by at least five to seven days of drying for planting
· Corn: CZ up.04 @ $3.4475; CH up $.0375 @ $3.535. The funds sold 15 K on Wednesday
· SB: SX up $.19 @ $10.01; SF up $.185 @ $10.095. Funds: Sold 8 SB; 4 SBM; and 7 SBO.
· Wheat: WZ up $.0525 @ $4.12; WH up $.0525 @ $4.2975. The funds sold 5 K Wednesday
CORN/SORGHUM
· Export Sales to be released at 7:30 AM CST. Trade expects 43-55 for 16/17 corn
· ATI Research: Negative USDA WASDE report with national U.S. corn yield rising 1.9 bpa to a record 175.3. Projections for 16/17 show corn export potential for Brazil and Argentina set to rise sharply for crop currently being planted
· Consultant: The 16/17 corn growing season for Argentina started out better than average but has now slipped to below average. Heavy rains and localized flooding have slowed down planting and resulted in some replanting
· Ethanol grind: 1,002,000 barrels/day for week end Nov. 4—down 2.0% vs. last week but 2.0% higher vs. last year
SOYBEANS/WHEAT
· Export Sales report. Trade expects 62-73 mbu for 16/17 soybeans; soymeal, 150-350 K MT; soyoil, 10-40
· Consultant: Start of the soybean growing season for Argentina would be characterized as average to below average
· T-storm Weather: Rapid and sustained drying improves conditions for soybean planting in many areas of South America from early next week forward, except in northern areas of Brazil including 50% of Brazil’s soybean crop
· Export Sales report. Trade expects 11-18 mbu for 16/17 all wheat
· T-storm Weather: Dry weather continues for central U.S. through at least Nov. 17. Nov. 18-20 system produces some rain; highest chances are in Corn Belt & Delta. Rain needed given extensive dryness in key HRW & SRW wheat areas
ENERGY
· Mixed: CLZ16, -$.27 @ $45.00; EBF, +$0.22; EBF-CLF, $0.79, +$0.37; RBZ, +$.0101; NGZ, -$.032; HOZ, +$.0007
· Cash ethanol markets were weaker on Wednesday: Chicago off 3; New York eased 4 ½; Gulf declined 3; Tampa slipped 1 ½; Dallas down 2 ¼; and LA was 1 ½ lower at $1.75 per gallon
· Ethanol RINs declined: 2014’s, 2015’s and 2016’s were all 4 ½ lower at 76 ½-83 ½
· The Dec RBOB/Nov ethanol inverse is -0.15070/gallon
LIVESTOCK/POULTRY    
· Choice boxed beef declined 79-cents on Wednesday to $184.55, and is $2.89 lower vs. a week ago
· U.S. cattle slaughter for Wednesday was estimated at 115,000 head vs. 115,000 last week and 102,000 last year
· USDA mandatory pork carcass cutout was 75-cents lower on Wednesday at $72.96, but is still up $1.53 vs. last week
· CME Lean Hog Index $0.34 lower on Wed. at $49.80. December futures down $0.425 & are $3.25 below the index
Sources: Bloomberg, Dow Jones, AP, DTN
Brian Basting
mail to: bbasting@advance-trading.com
http://www.advance-trading.com