HIGHLIGHTS
· MARKET TREND: Lower-CZ: down $.0325 SF: down $.05; WZ: down $.0525; KWZ: down $.0275
· MACRO: Dow surpasses 19,000; Trump easing investor worries over uncertainty. ASIA: A little weaker: Nikkei, closed; Hang Seng, -0.01%; Shanghai, -0.21%. EUROPE: Mostly lower: FTSE, +0.27%; DAX, -0.76%; CAC, -0.61%.Wall STREET: Pre-markets are a little weaker: DOW futures, -2; S&P, -1.25; NASDAQ, -4.75. EXTERNALS: $ Index, -.041 @ 101.065; Gold, -$0.40 @ $1,210.80; Dec Crude, +$0.03 @ $48.00
· T-storm Weather: A strong system breaks drying Sat.-Sun. in Argentina, most likely resulting in 1.00"-2.00" rain across northern half of corn & soybeans, and lesser amounts of 0.50"-1.00" in southern areas. A drier & increasingly warm pattern likely follows, allowing soybean planting to resume, but potentially leaving some areas drier than ideal leading into December. The same system triggers thunderstorms within drying areas of southern Brazil & Paraguay Sun.-Mon., followed by more rain next week
· Corn: CZ down $.0325 @ $3.4775; CH down $.0350 @ $3.5550 . Fund buying totaled 3 K contracts on Tuesday
· SB: SF down $.0475 @ $10.2525; SH dn $.05 @ $10.3375. Funds—bot 8 SB, 7 SBM, sld 2 SBO. Board Crush: $.73, +.01; LY, $.70
· Wheat: WZ down $.0525 @ $4.02; WH down $.04 @ $4.2325. Fund trading was even yesterday
       
CORN/SORGHUM
· Consultant: Two thirds of Brazil’s corn production will be from safrinha (double crop). The soybeans have been planted early enough so that the safrinha crop will be planted during the ideal planting window of January-February
· T-storm Weather: Much of Argentina, southern Brazil and Paraguay received little to no rain the last 14 days. Thus, forecasted rain for these areas starting this weekend & continuing into next week would be ideal for vegetative corn
· ATI Research: Near-term U.S. corn exports forecast at 30-40 mbu per week; sorghum estimated at 1.5-2.0 mbu
· Ethanol margins: $0.33 per gallon—down from $0.35 last week and below $0.34 in 2015. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· January 2017 soybean futures on Tuesday closed at $10.30, the highest settlement price for the contract since July 18
· Consultant: In Brazil, the condition of the soybean crop in the north has been better than average. The crop was planted at record pace, especially in the #1 producing state of Mato Grosso, and the weather has been favorable
· T-storm Weather: Most soybeans in northern Brazil remain moist from near-normal rainfall into early December
· ATI Research: U.S. all wheat exports are forecast to range from 15-20 mbu over the next 4 weeks vs. 12.8 last year
· T-storm Weather: Drought diminishes across the U.S. SRW wheat belt into December as several systems pass
ENERGY
· Mixed: CLF16, +$.03 @ $48.00; EBF, +$0.11; EBF-CLF, $1.10, +$0.04; RBZ, -$.0018; NGZ, -$.039; HOZ, +$.0015
· EIA estimates (API): Crude oil, +0.8 (-1.3); Gasoline, +0.9 (+2.7); Distillates, -0.7 (-0.4)
· Cash ethanol markets continued to move higher on Tuesday: Chicago gained 5/8; New York climbed 1 ¾; Gulf added 1 ½; Dallas increased 3 ½; Tampa firmed 3 ½; and LA was 3 ½ higher at $1.81 per gallon
· Ethanol RINs gained: 2015’s added ¾ to 86-87 ½; 2016’s firmed ¾ to 86-87 ½; and 2017’s up ¾ to 85 ¾-87 ¼
· The Dec RBOB/Dec ethanol inverse retreated $.0133 to -$0.19120/gallon in Tuesday’s trade
LIVESTOCK/POULTRY </wbr>
· Choice boxed beef was 46-cents lower on Tuesday at $185.22, but is still up $2.11 compared to last week
· Cash cattle trading remained quiet on Tuesday, with asking prices of $112 in the South and $174 in the North
· USDA mandatory pork carcass cutout was 46-cents higher on Tue. at $73.22, but is still down 38-cents vs. a week ago
· CME Lean Hog Index declined $0.23 on Tue. to $47.49. December futures down $0.475 & are $1.81 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather