HIGHLIGHTS
· MARKET TREND—Mixed: CH, steady; SH, down $.04; WH, up $.0025; KWH, down $.0050
· MACRO: Chinese purchasing mgr’s index rises to 51.9 (vs 50.7 expected), best gain in 3 years. ASIA-- Nikkei, still partying; Hang Seng, +0.68%; Shanghai, +1.05%. EUROPE—higher: FTSE, +0.40%; DAX, +0.02%; CAC, +0.54%. Wall STREET: The rally continues? DOW futures, +148; S&P, +17.25; NASDAQ, +38.50. EXTERNALS: $ Index, +1.149 @103.435; Jan Gold, +$2.00 @ $1,152.00; Feb Crude, +$1.33 @ $55.44. Deliveries: SBM, 69; SBO, 841; SB, 100
· T-storm Weather: A heavy thunderstorm cluster affected key (and wettest) areas of central and southern Argentina Sat.-Sun., producing 1.00” to 2.00” of unneeded rain (which was more than expected), while unfavorably dry weather continued in and adjacent far southwest Buenos Aires. Thunderstorms affect Argentina over Tue.-Thu. this week with highest totals along to just north of wettest corn and soybeans. Driest areas of/near southwest Buenos Aires stay dry as soybean planting nears an end
· Corn: CH steady @ $3.52; CK up $.0025 @ $3.5775. The funds closed out the year buying 3 K
· SB: SF down $.0425 @ $9.9225; SH, down $.04 @ $10.00. Funds—Sold 4 SB, 2 SBM, 2 SBO. Board Crush: $.70, +$.01; LY, $.46
· Wheat: WH up $.0025 @ $4.0825; WK down $.0025 @ $4.2025. Fund buying estimated at 2 K on Friday
CORN/SORGHUM
· T-storm Weather: More than 1.50” of rain this week affects the northern fringe of the wettest corn areas in Argentina
· Consultant: Recent heavy rains have resulted in localized flooding and delayed corn planting. In the hardest hit areas, the heavy rains and flooding will require some of the corn to be replanted if it dries up in time
· ATI Research: USDA Crop Production annual summary to be released Jan. 12. The last four times the U.S. corn yield in the November report was above 160.0 bpa, the January yield was higher twice (’04 & ’09) & lower twice (’14 & ’15)
· Export Inspections released at 10 AM CST; Corn, 43.9 mbu needed; 38.2 last week. Milo—5.1 needed; 6.6 last week
SOYBEANS/WHEAT
· November 2017 soybean futures on Fri. closed at $9.89 ¼--one year ago, November 2016 futures settled at $8.82 ¾
· Consultant: Some areas of the heart of Argentina soybean production received up to 10.00” of rain over Christmas and an additional 1.00”-2.00” over the New Year holiday. This is generally the same area that flooded last April
· Export Inspections released at 10 AM CST: Soybeans, 24.9 mbu needed; 62.8 last week
· Export Inspections released at 10 AM CST: Wheat, 18.2 needed; 19.1 last week
· T-storm Weather: Unseasonably cold weather occurs across much of central U.S. this week. However, minimums generally stay in the +0s & milder in snow-free areas of CO-NE & points south, limiting potential for wheat winterkill
ENERGY
· Firmer: CLG17, +$1.33 @ $55.44; EBH, +$1.27; EBH-CLH, $2.11, -$0.05; RBG, +$.0305; NGG, -$0.228; HOG, +$.0327
· A steady to weaker trend was evident in cash ethanol markets on Friday: Chicago declined 3 7/8; New York down 4 ¼; Gulf eased 3 ¼; Tampa unchanged; Dallas off ½; and LA was steady at $1.82 ½ per gallon
· Ethanol RINs were lower: 2015’s off 1 at 83 ½-84 ½; 2016’s eased 1 to 83 ½-84 ½; and 2017’s fell 1 1/8 to 83 ½-84 ½
· The Jan RBOB/Jan ethanol spread gained $0.0091 on Friday, settling at +$0.05910/gallon, premium RBOB
LIVESTOCK/POULTRY    
·   Choice boxed beef values eased 14-cents on Friday to $203.33, but are still $5.06 higher vs. last week
· Light-to-moderate cash cattle trading developed on Friday in the South at $118—up $3 compared to the prior week
· USDA mandatory pork carcass was 63-cents higher on Friday at $81.13, and is up 54-cents compared to a week ago
· CME Lean Hog Index eased $0.22 to $57.76. February futures rose $1.50 and are $8.39 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather