HIGHLIGHTS
· MARKET TREND—Lower: CH, down $.02; SF, down $.0075; WH, down $.0275; KWH, down $.0125
· MACRO: Another new high for U.S. equities lifts global markets. ASIA-Up: Nikkei, +0.70%; Hang Seng, +0.55%; Shanghai, +0.70%. EUROPE-firmer: FTSE, +1.49%; DAX, +1.49%; CAC, +0.92%. Wall STREET: Futures are higher: DOW, +22; S&P, +1.25; NASDAQ, +2.25. EXTERNALS: $ Index, +.040 @ 100.570; Gold, +$2.90 @ $1,70.50; Jan Crude, +$0.15 @ $51.08. Deliveries: SBO, 394; HRW, 24; SRW, 10; Oats, 27; EU Wheat, 40
· T-storm Weather: A wave of energy triggers thunderstorms within northern Argentina, southern Brazil, and Paraguay into the weekend, improving or maintaining soil moisture within the region. The associated cool front then drifts northward later this weekend and next week, focusing rain further to the north, including more of the dry areas in Brazil. To the south, central and southern Argentina remain dry and seasonable through 10 days as areas of surface-level high pressure suppress rainfall
· Corn: CH down $.02 @ $3.5850; CZ, down $.0125 @ $3.4975. More fund buying with 7 K estimated on Tuesday
· SB: SF down $.01 @ $10.4675; SH, down $.0075 @ $10.57. Funds—bot 6 SB; 4 SBM, 3 SBO. Board Crush: $.76, +$.02; LY, $.72
· Wheat: WH down $.0275 @ $4.04; WZ, NA. The funds bought 4 K yesterday
CORN/SORGHUM
·   Consultant: Corn that has been planted in Argentina varies from early vegetative development to some that is already past pollination. The vast majority of the corn thus far is rated in good to excellent condition
· T-storm Weather: Next chance for organized rain across Argentina corn is Dec. 17-21. The chance is currently low; future updates will focus on whether or not the chance is low, moderate or high, as well as coverage and amounts
· ATI Research: Near-term U.S. corn exports forecast at 40-45 mbu per week; sorghum estimated at 4.5 mbu
· Ethanol margins: $0.33 per gallon—unchanged from last week but above $0.32 in 2015. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· Since trading at $9.03 ½ Aug. 2, November 2017 soybean futures have rallied $1.24 (13.7%) to settle Tue. at $10.27 ½
· Consultant: It was generally a good week of weather for soybeans across Brazil. The production estimate is unchanged at 101.0 MMT (vs. 95.5 last year) but could edge higher if weather conditions remain favorable
· ATI Research: U.S. HRW export sales over the last 4 weeks totaled 29 mbu—the 2ndhighest total since 2005
· T-storm Weather: In the U.S., light snow affects parts of HRW wheat across the central Plains today although only limited coverage is forecast
ENERGY
· Firmer: CLF16, +$0.15 @ $51.08; EBG, +$0.11; EBG-CLF, $2.96, -$0.04; RBF, +$.0064; NGF, +$.077; HOF, +$.0005
· EIA estimates (API): Crude oil, -0.9 (-2.2); Gasoline, +1.7 (+0.8); Distillates, +1.5 (+4.0)
· A slightly firmer trend was noted in cash ethanol markets on Tuesday: Chicago added 1 3/8; New York gained 1; Gulf increased 1 1/8; Tampa climbed 1; Dallas up 1 ½; and LA was ½ higher at $1.83 ½ per gallon
· Ethanol RINs weakened: 2015’s, 2016’s and 2017’s all declined 2 to 105-106
· The Jan RBOB/Jan ethanol inverse gave up $.0114 to settle at -$0.057700/gallonyesterday
LIVESTOCK/POULTRY
· Choice boxed beef values were 88-cents lower on Tuesday at $190.51, but are up 95-cents vs. a week ago
· Cash cattle are called steady to $3 higher following Tuesday’s sharp rally in live cattle futures
· USDA mandatory pork carcass increased 17-cents on Tuesday to $73.70, and is 71-cents higher compared to last week
· CME Lean Hog Index firmed $0.47 on Tue. to $51.03. December futures gained $1.875 & are $2.345 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather