HIGHLIGHTS
· MARKET TREND—Lower: CH, down $.0150; SH, down $.0250; WH, dn $.02; KWH, down $.0325
· MACRO—U.S. producer price index accelerates at fastest pace in 4 years, inflation lurks; Yellen opens door for rate hike in March. ASIA-Mostly higher: Nikkei, +1.03%; Hang Seng, +1.23%; Shanghai, -0.16%. EUROPE—Higher: FTSE, +0.38%; DAX, +0.20%; CAC, +0.45%. Wall STREET-Pre markets mixed: DOW futures, +13; S&P, -2.00; NASDAQ, -1.75. EXTERNALS: $ Index, +0.212 @ 101.445; Gold, +$1.40 @ $1,226; and Mar Crude, off $.32 @ $52.88
· T-storm Weather: There are no changes to the T-storm Weather Outlook as a stormy period is expected to resume Thu.-Fri. in Argentina as storm systems pass and trigger t-storm clusters every 1-3 days. Widespread rain occurs with 2-6" most common over the next 10 days; highest coverage and amounts initially in / near Entre Rios. Heavy t-storms continue into tomorrow in Mato Grosso
· Corn: CH down $.0150 @ $3.7275; CK down $.0150 @ $3.8025. Funds were even on corn yesterday
· SB: SH down $.0225 @ $10.4275; SK down $.0275 @ $10.5325. Funds: Sold 4 SB; 4 SBM; 0 SBO. Crush: $.77, 0$.00; LY: $.50
· Wheat: down $.02 @ $4.4750; WK down $.0225 @ $4.6125. The funds sold 3 K on Tuesday  
CORN/SORGHUM
· Corn Export Outlook—unshipped sales as of the Feb 2 at an all-time seasonal high of 803 range & up 67% versus LY; BOY exports of 1.3 mbu needed for USDA forecast, 70 mbu or 5% less than last year
· Tuesday’s $3.99 ½ close on CZ17, was 17 ¾ cents above CZ16 a year ago
· Weekly EIA Ethanol report estimates: production off 2 to 6 K bpd; stocks 25 to 150 K barrels higher
· Milo exports lag: YTD sales off 47% at 128 mbu; USDA forecasting a more modest 33% decline
· Mexico to consider “buying Brazil” corn; won’t be easy (freight). Lowest U.S. share 86% in 12/13; might lose 1 MMT+
SOYBEANS/WHEAT
· Unshipped SBM exports at 3.54 have recently surpassed LY’s 3.34 MMT total. Per USDA, BOY exports need to total about 1% less to reach forecast.
· NOPA crush out at 11 am. Trade range 157-162 with 159.1 average and versus 150.5 mbu LY. Ideas on EOM oil stocks said to range from 1.5-1.55 billion pounds, up from 1.434 billion at the end of December
· 1 year ago Tuesday, SX16 closed at $8.86 or $1.37 BELOW yesterday’s close. Yet, S Am crop said to be 6 MMT larger than year AND, some are penciling in as much as a 6+ million increase in U.S. plantings this spring
· Wheat export outlook ramping up? O/S sales up nearly 75% yr to yr; recent sales pace double are double last year
ENERGY
· Weaker: CLH17, -0.32 @ $52.88; EBJ, -$0.22; EBH-CLH, $2.87, +$0.10; RBH, -$.0014;NGH, +$0.066; HOH, -$.0110
· EIA Report Estimates (API): crude oil, +2.9 (+9.9); Gasoline, -0.7 (+0.7); Distillates, -0.5 (+1.5)
· Cash ethanol markets off sharply: LA fell 6 to $1.71; the Gulf lsot 5 ¼ to $1.57; Dallas and Tampa were both 5 lower; NY was off 4 ½ cents and Chicago dropped $.0615 to $1.5023/gallon
· Ethanol RINs were weaker: 2015’s down 1 ¼ to 44-47; 2016’s 1 ½ lower to 45 ½ - 48 ½; 17’s down 1 ¼ to 46-49
· The Mar RBOB/Mar ethanol spread moved to a carry, up $.0451 to +0.00470/gallon, premium RBOB
LIVESTOCK/POULTRY   ;
· Choice boxed beef values firmed 10-cents on Tuesday, but are $1.60 lower vs. last week
· Cash cattle markets remained quiet on Tuesday with meaningful trade volume not expected until Thursday or Friday
· USDA mandatory pork carcass cutout gained 35-cents on Tue. to $85.08 and is 36-cents higher compared to last week
· CME Lean Hog Index was up $0.51 on Tue. to $74.62. April futures increased $1.60, but are $3.32 below the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather