HIGHLIGHTS
· MARKET TREND—Mixed: CH, up $.0025; SH, up $.0475; WH, dn $.0150; KWH, up $.0025.
· MACRO—U.S. business tax cut plan out in 3 weeks-Trump; latter to honor “one China policy”; global equities move higher. ASIA-Higher: Nikkei, +2.49%; Hang Seng, +0.21%; Shanghai, +0.44%. EUROPE- Mostly higher: FTSE, +0.27%; DAX, +0.14%; CAC, -0.11%. Wall STREET-Futures are to the plus side—more earnings reports out: DOW, +21; S&P, +1.50; NASDAQ, +4.50. EXTERNALS: $ Index, +0.118 @ 100.765; Gold, -$9.30 @ $1,238; and Mar Crude is up $.43 @ $53.43
· T-storm Weather: Thunderstorms affect parts of Argentina into Sunday, then again as next week progresses. Heavy rainfall of 4.00" to 6.00" with pockets of higher amounts results through 10 days within the northern third of the growing belt (along to just north of where flooding developed last month), while 2.00" to 4.00" of rain occurs in central areas that were flooded last month, and 1.00" to 2.00" affects southern areas that were unusually wet last week
· Corn: CH up $.0025 @ $3.6975; CK up $.0025 @ $3.7750. The funds sold 2 K on report day
· SB: up $.0475 @ $10.5525; SK up $.0475 @ $10.6625. Funds: sold 4 K SB; 3 SBM; 2 SBO. Crush: $.75, +$.02; LY: $.53
· Wheat: down $.01 @ $4.4250; WK down $.01 @ $4.5425. Active fund buying, a total of 7 K yesterday
CORN/SORGHUM
· March 2017 corn futures Thu. traded $3.72 ¾—highest price since July 15—but settled $0.01 ¼ lower at $3.69 ½
· ATI Research: The USDA in Thursday’s WASDE report revised its U.S. ending corn stocks estimate 35 mbu lower to 2.320 bbu , which was 14 million less than the average trade estimate
· Export sales of U.S. corn week end Feb. 2: 38.3 mbu, down 13% v. 4-week avg. but more than double last year’s 15.9
· T-storm Weather: Thunderstorms frequently form across safrinha (double crop) corn areas in Mato Grosso, Brazil over the next 10-14 days, resulting in 4.00” to 8.00” of rain with highest totals in the north
SOYBEANS/WHEAT
· ATI Research: The USDA in Thursday’s WASDE report lowered its forecast of Argentina soybean production by 1.5 MMT to 55.5 but the trade has expected a 2.7 MMT decline. U.S. soybean ending stocks were unchanged at 420 mbu
· Export sales of U.S. soybeans week end Feb. 2: 19.7 mbu, down 14% v. 4-week avg. and below last year’s 24.5
· ATI Research: The USDA in Thursday’s WASDE report revised its world ending wheat stocks estimate 4.7 MMT lower to 248.6 MMT , but the average trade estimate was looking for a 0.2 MMT increase
· Export sales of U.S. wheat week end Feb. 2: 19.4 mbu, up 9% v. 4-week avg. and more than double last year’s 9.7
· T-storm Weather: Moderate/high chance for significant precip Mon.-Tue. for Texas HRW wheat; but lower in OK & KS
ENERGY
· Higher: CLH17, +$0.43 @ $53.43; EBJ, +$0.53; EBH-CLH, $2.74, +$0.11; RBH, +$.0220;NGH, -$0.114; HOH, +$.0138
· A mixed trend was evident in cash ethanol markets on Thursday: Chicago down 1 5/8; New York up 1; Gulf steady; Dallas firmed 5 ½; Tampa added 6 ½; and LA was a penny higher at $1.78 ½ per gallon
· Ethanol RINs firmed on Thu.: 2015’s climbed 3/8 to 47 ½-49; 2016’s up 5/8 at 49-50 ½; & 2017’s gained ¾ to 49 ½-51
· The Mar RBOB/Mar ethanol weakened further, losing $.0325 to -0.01880/gallon, premium ETOH
LIVESTOCK/POULTRY  
·   Choice boxed beef values were 72-cents lower on Thursday at $188.71 and are down $4.30 compared to last week
· ATI Research: USDA WASDE report raised 2017 U.S. beef export projection 75 mil. lbs on strong international demand
· USDA mandatory pork carcass cutout eased 28-cents on Thursday to $84.55, but is still up $1.54 vs. a week ago
· CME Lean Hog Index was up $0.61 on Thu. to $72.80. February futures gained $0.875 & are $1.425 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather