HIGHLIGHTS
· MARKET TREND—Mixed: CH, steady; SH, up $.0125; WH, down $.0125; KWH, up $.01
· MACRO: Global stocks are mixed overnight. ASIA-- Nikkei,+2.51%; Hang Seng, -0.07%; Shanghai, +0.76%. EUROPE—mostly weaker: FTSE, +0.09%; DAX, -0.24%; CAC, -0.08%. Wall STREET: Futures point to a positive start. DOW, +26; S&P, +3.75; NASDAQ, +7.25. EXTERNALS: $ Index, -0.226 @102.975; Jan Gold, +$4.20 @ $1,164.600; Feb Crude, +$0.22 @ $52.55. Deliveries: SBM, 150; SBO, 727; SB, 500
· T-storm Weather: A slow-moving cool front triggers heavy thunderstorms across central / northern Argentina, southern Brazil, and Paraguay within the next five days, and again next week. The potential for excessive rainfall exists, especially in parts of central Argentina and southern Brazil where 14-day totals already exceeded 6.00" and another 3.00" to 6.00" is probable over the next 10 days (though heaviest rain most likely focuses along the northern fringe and north of the wettest crops in Argentina)
· Corn: CH steady @ $3.55752; CK steady @ $3.6150. The funds bought 8 K on Tuesday
· SB: SH up $.0125 @ $9.9625; SK, up $.01 @ $10.0450. Funds—Sld 6 SB, 3 SBM, bot 2 SBO. Board Crush: $.75, +$.01; LY, $.57
· Wheat: WH down $.0125 @ $4.0525; WK down $.0125 @ $4.1675. Fund buying totaled 2 K yesterday
CORN/SORGHUM
· Consultant: The full-season corn crop in Brazil will be good, but maybe not quite as good as previously expected due to earlier dry weather in parts of Rio Grande do Sul
· T-storm Weather: Rainfall remains below normal within northern growing areas of Brazil through at least Saturday (Jan. 7), including the drying northeast third of first-crop corn
· ATI Research: U.S. corn balance sheet; 16/17 carryout estimated at 2.507 bbu
· ATI Research: U.S. sorghum balance sheet; 16/17 carry-out pegged at 29 mbu
SOYBEANS/WHEAT
· Consultant: Nationwide Brazil soybean harvest estimate is unchanged at 103.0 MMT
· ATI Research: U.S. soybean balance sheet; 16/17 carry-out is estimated at 457 mbu
· T-storm Weather: Upper-level high pressure near Bahia, Brazil is probable to limit rainfall coverage and amounts in Northeast soybean producing areas, keeping ~10% of soybean output intensely dry through mid-month
· ATI Research: U.S. HRW wheat balance sheet; 16/17 carryout projected at 597 mbu compared to 446 last year
· T-storm Weather: In the U.S., outside of some light snow in parts of the central and southern Plains over Wednesday-Friday, mainly dry weather occurs for at least 7 to 10 days in most winter wheat areas
ENERGY
· Mixed: CLG17, +$0.22 @ $52.55; EBH, +$0.18; EBH-CLH, $2.18, $0.00; RBG, +$.0076;NGG, -$0.018; HOG, -$.0020
· Cash ethanol markets were notably weaker on Tuesday compared to last Friday: Chicago down 5 ¾; New York off 1; Gulf slid 9 ¼; Tampa fell 5; Dallas declined 7 ½; and LA was 6 ½ lower at $1.76 per gallon
· Ethanol RINs were weaker: 2015’s, 2016’s and 2017’s were all down ½ at 82-85
· The Feb RBOB/Feb ethanol spread lost $.0073 yesterday and settled at +$0.05180/gallon, premium RBOB
LIVESTOCK/POULTRY     </p>
· Choice boxed beef values were unchanged on Tuesday at $203.33, but are still $4.79 higher vs. a week ago
· 5-Area Weekly Weighted Average Steer price up $2.30 v. last week to $117.44/cwt, but is $16.51 lower vs. last year
· USDA mandatory pork carcass was $1.02 lower on Tuesday at $80.11, and is down $1.43 vs. the previous week
· Current nearby board hog crush value is $42.74/cwt vs. last week’s $41.46, last month’s $37.75 & last year’s $44.95
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather