HIGHLIGHTS
· MARKET TREND—Lower: CH, down $.0050; SH, down $.0550; WH, dn $.0250; KWH, down $.0125.
· MACRO—Friday’s record-high U.S. close is lifting overseas markets; U.S. to honor “one China” policy; meeting with Japan’s ABE eases some trade concerns. ASIA-Higher: Nikkei, +0.41%; Hang Seng, +0.58%; Shanghai, +0.64%. EUROPE--Higher: FTSE, +0.06%; DAX, +0.66%; CAC, +0.89%. Wall STREET-Pre markets are firm: DOW futures, +39; S&P, +3.00; NASDAQ, +3.50. EXTERNALS: $ Index, -0.066 @ 100.725; Gold, -$4.20 @ $1,231; and Mar Crude, off $.34 @ $53.52
· T-storm Weather: In Argentina, dry and seasonable weather continue through midweek. Changes recur Thu.-Fri. when the next in a series of systems passes, likely marking the start of another stormy period as thunderstorms occur every 1-3 days. The end result is that above-normal rain continues over the next 10 days, especially in central and southern areas that were unseasonably wet at one point or another since mid-January; 2.00” to 4.00” totals most common
· Corn: CH down $.0050 @ $3.74; CK down $.0050 @ $3.8150. Fund buying totaled 20 K on Friday
· SB: SH down $.0440 @ $10.5350; SK down $.0550 @ $10.6450. Funds: Bot 6 SB; 5 SBM; sold 3 SBO. Crush: $.74, -$.01; LY: $.54
· Wheat: down $.0275 @ $4.4625; WK down $.0225 @ $4.6075. The funds bought 7 K to close out the week
CORN/SORGHUM
· March 2017 corn futures on Friday closed at $3.74 ½--the highest settlement price for the contract since July 13, 2016
· T-storm Weather: Heavy thunderstorms impact Mato Grosso, Brazil through Wed. as 3.00”-6.00” of rain affect a large area. Thunderstorms break across the state Wed.-Thu., likely improving conditions for second-crop corn planting
· The 2017 projected crop insurance price average of December 2017 corn futures from Feb. 1-10 is $3.9553
· Consultant: Some longer-range forecasts continue to project drier-than-normal conditions for safrinha (double crop) corn in southern areas of Brazil
· Export Inspections released at 10 AM CST; Corn, 45.3 mbu needed; 43.8 last week. Milo—4.0 needed; 4.7 last week
SOYBEANS/WHEAT
· ATI Research: With U.S. outstanding soybean exports to Unknown (some are undoubtedly ear-marked for China) and other markets up 30%, the USDA’s 2.050 bbu U.S. soybean export forecast to all destinations appears a bit light
· The 2017 projected crop insurance price average of November 2017 soybean futures from Feb. 1-10 is $10.2013
· Export Inspections released at 10 AM CST; Soybeans, 18.8 mbu needed; 60.1 last week
· T-storm Weather: Heavy rain of 0.75”-1.50” affects HRW wheat in much of Texas & southern Oklahoma Mon.—Ttue.
· Export Inspections released at 10 AM CST: Wheat, 22.6 needed; 22.7 last week
ENERGY
· Weaker: CLH17, $0.34 @ $53.52; EBJ, -$0.37; EBH-CLH, $2.80, -$0.04; RBH, -$.0148;NGH, -$0.056; HOH, -$.0139
· Cash ethanol markets remained mixed on Friday: Chicago off 2 ¼; New York up 7/8; Gulf increased 2; Dallas and Tampa eased 2 ½; and LA was 2 lower at $1.76 ½ per gallon
· Ethanol RINs gained slightly on Fri.: 2015’s up ¼ at 48-49; 2016’s added ½ to 50-50 ½; & 2017’s firmed ¼ to 50-51
· The Mar RBOB/Mar ethanol was again weaker, off $.0074 to -0.01140/gallon, premium ETOH
LIVESTOCK/POULTRY    
· Choice boxed beef values declined $1.08 on Friday to $187.63 and are $3.77 lower vs. a week ago
· U.S. cattle slaughter week end Feb. 11 up 4.9% v. last year but beef production 4.3% higher due to lighter weights
· USDA mandatory pork carcass cutout gained 34-cents on Fri. to $84.89 and is 97-cents higher compared to last week
· CME Lean Hog Index was up $0.71 on Fri. to $73.51. February futures firmed $0.325 & are $1.04 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather