HIGHLIGHTS
· MARKET TREND—mixed: CH, down $.0150; SF, up $.0225; WH, up $.01; KWH, down $.0150
· MACRO: Mixed results on the final 2016 trading day. ASIA-- Nikkei, closed; Hang Seng, +0.96%; Shanghai, +0.24%. EUROPE—lower: FTSE, -0.42%; DAX, -0.22%; CAC, -0.25%. Wall STREET: Going out with a bang? DOW futures, +31; S&P, +4.75; NASDAQ, -9.50. EXTERNALS: $ Index, -.421 @102.290; Jan Gold, +$2.90 @ $1,159.30; Feb Crude, +$0.07 @ $53.84. Deliveries: SBM, 103; SBO, 1,644
· T-storm Weather: In Brazil, upper-level high pressure suppresses rainfall across the northeast third of the first-crop corn and soybean growing belt through 7 to 10 days, and especially the northeast ~10% of production. Much of Argentina receives significant rainfall of 1.25" to 2.75" over the next 10 days, except in far southern areas where little to none occurs, including the small areas of dry soybeans and sunflowers
· Corn: CH down $.0150 @ $3.4825; CK down $.0150 @ $3.5425. The funds bought 3 K yesterday
· SB: SF up $.0225 @ $10.0550; SH, up $.0125 @ $10.14. Funds—Sold 2 SB, 1 SBM, 3 SBO. Board Crush: $.69, -$.03; LY, $.48
· Wheat: WH up $.01 @ $4.0575; WK up $.0125 @ $4.19. Fund buying totaled 3 K on Thursday
CORN/SORGHUM
·   Export Sales to be released at 7:30 AM CST. Trade expects 31-47 for 16/17 corn
· T-storm Weather: In Argentina, several days of heat occur through Monday with maximums into the mid-90s. Heat will be tempered, however, by a weak cool front and a few thunderstorms Saturday-Sunday with more rain next week
· Consultant: Two-thirds of Brazil’s corn will be safrinha (double-crop) production and with the early soybean harvest getting started in Mato Grosso, should start hearing about the first safrinha corn being planted probably by next week
· Ethanol grind: 1,036,000 barrels/day for week end Dec. 23—down 0.8% vs. last week but 3.6% higher vs. last year
SOYBEANS/WHEAT
· Export Sales report. Trade expects 37-55 mbu for 16/17 soybeans; soymeal, 40-200 K MT; soyoil, 5-20
· Consultant: In Brazil, early soybean harvest should begin this week in Parana—the 2nd largest soybean producing state
· T-storm Weather: Dry weather impacts ~25% of Brazil’s soybeans across the northeast over the next 7-10 days. Surrounding this area, occasional thunderstorms form leading to near-normal rain in other areas
· Export Sales report. Trade expects 7-18 mbu for 16/17 all wheat
· T-storm Weather: In the U.S. several systems pass into early next week, mostly producing rain in SRW wheat areas but not HRW wheat areas where drying likely continues
ENERGY
· Mixed: CLG17, +$0.07 @ $53.84; EBG, NA; EBG-CLG, NA; RBG, -$.0132; NGG, $.00;HOG, +$.0004
· A mixed trend was evident in cash ethanol markets on Thursday: Chicago gained 3 ½; New York added 7; Gulf increased 3 ¼; Tampa eased ½; Dallas firmed 1; and LA was steady at $1.82 ½ per gallon
· Ethanol RINs were weaker: 2015’s down ¾ to 84-86; 2016’s off ¾ to 84-86; and 2017’s declined 5/8 to 84-86 ¼
· The Jan RBOB/Jan ethanol spread lost $.0556 on Thursday, falling to +.0500/gallon, premium RBOB
LIVESTOCK/POULTRY ;
· Choice boxed beef values were $1.63 higher on Thursday at $203.47, and are up $5.86 compared to a week ago
· February live cattle futures traded to $118.05 on Thursday, the highest price for the contract since June 9
· USDA mandatory pork carcass was 54-cents lower on Thursday at $80.50, but is still 59-cents higher vs. last week
· CME Lean Hog Index gained $0.03 to $57.98. February futures declined $0.45 but are still $6.67 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather