HIGHLIGHTS
· MARKET TREND—Lower: CH, down $.0025; SF, down $.0025; WH, down $.03; KWH, down $.0325
· MACRO: Equities mostly higher—Fed rate hike no surprise/possibility of 3 in 2017 was. ASIA-mostly lower: Nikkei, +0.10; Hang Seng, -1.77%; Shanghai, -0.71%. EUROPE—higher: FTSE, +0.18%; DAX, +0.65%; CAC, +0.88%. Wall STREET: Pre-markets look to be headed higher: DOW, +46; S&P, +3.75; NASDAQ, +3.25. EXTERNALS: $ Index, +1.29 @103.055; Gold, -$31.60 @ $1,129.70; Jan Crude, +$0.20 @ $51.24. Deliveries: SBM, 53; SBO, 152; Corn, 167; HRW, 23 SRW, 0; Oats, 103: EU wheat, 5
· T-storm Weather: Scattered thunderstorms affect corn and soybeans in Argentina from Saturday night forward as the dry pattern breaks and a seasonably-stormy period begins. Temperatures will be hot over Thursday-Saturday as maximums reach the mid- and upper-90s, but occasional thunderstorms limit the duration and intensity of heat from Sunday forward. In Brazil and Paraguay, some thunderstorms continue in varying areas at varying times, limiting concern over drying
· Corn: CH down $.0025 @ $3.6175 CK, down $.0025 @ $3.6825. The funds bought 3 K at mid-week
· SB: SF dn $.0025 @ $10.50; SH, dn $.01 @ $10.3350. Funds—Sold 2 SB, 2 SBM, Bot 2 SBO. Board Crush: $.71, +.01; LY, $.68
· Wheat: WH down $.0325 @ $4.1475; WK, down $.03 @ $4.26. Funds: bought 1 K
CORN/SORGHUM
· Export Sales to be released at 7:30 AM CST. Trade expects 31-43 for 16/17 corn
· T-storm Weather: Rain amounts of 1.25”-2.75” forecast Dec. 18-24 for corn in central & northern areas of Argentina, marking the first week with above-normal precip since October. Rain amounts in the south are pegged at 0.75”-1.50”
· ATI Research: This year, there seems to be an overwhelming amount of anecdotal evidence suggesting the USDA could be 250 million bushels too high on its annual corn feed/residual estimate
· Ethanol grind: 1,040,000 barrels/day for week end Dec. 9—up 1.7% vs. last week and 4.0% higher vs. last year
SOYBEANS/WHEAT
· Export Sales report. Trade expects 40-55 mbu for 16/17 soybeans; soymeal, 100-300 K MT; soyoil, 10-40
· Consultant: Soybeans in top producing state of Mato Grosso, Brazil are expected to do very well this growing season
· T-storm Weather: While diminished rainfall coverage through the weekend for soybeans near Southeast Brazil marks the start of a drier period, concern remains low over drying due to several factors; e.g. most areas were wet recently
· Export Sales report. Trade expects 11-18 mbu for 16/17 all wheat
· T-storm Weather: On top of the large winter storm projected across the central U.S.on Fri.-Sat., the setup remains conducive to additional rains and snows next week, especially in SRW wheat areas of the eastern Corn Belt and Delta
ENERGY
· Firmer: CLF17, +$0.20 @ $51.24; EBG, +$0.46; EBG-CLF, $3.10, +$0.24; RBF, +$.0024; NGF, -$.021; HOF, +$.0095
· Cash ethanol markets were weaker on Wednesday: Chicago down 4 ¾; New York off 6 ½; Gulf declined 1 ¼; Tampa eased 3; Dallas fell 2 ½; and LA was 3 lower at $1.97 per gallon
· Ethanol RINs were firmer: 2015’s, 2016’s and 2017’s all increased 5 to 87-95
· The Jan RBOB/Jan ethanol inverse gave up $.0454 Wednesday, closing at -$0.14690/gallon
LIVESTOCK/POULTRY   ;
· Choice boxed beef values were 85-cents lower on Wednesday at $190.88, but are $1.94 higher vs. last week
· Since February settling at $97.95 on Oct. 13, February live cattle futures have increased $15.75 (16.1%)
· USDA mandatory pork carcass eased 61-cents on Wed. to $74.46, but is still 3-cents higher compared to a week ago
· CME Lean Hog Index firmed $0.92 Wed. to $57.03. February futures were up $0.025 and are $4.745 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather