HIGHLIGHTS
· MARKET TREND—Mixed: CH, up $.01; SH, up $.0525; WH, down $.02; KWH, down $.0225
· MACRO—Mixed after the 3-day U.S. weekend; an active day of earnings reports as well as the February PMI coming out this morning. ASIA—Mostly higher: Nikkei, +0.68%; Shanghai, +0.41%; Hang Seng, -0.76%; EUROPE—Mostly higher: FTSE, -0.08%; DAX, +0.46%; CAC, +0.13%. Wall STREET-Pre markets are point to a higher opening: DOW futures, +60; S&P, +5.50; NASDAQ, +13.50. EXTERNALS: $ Index, +0.559 @ 101.510; Gold, -$7.70 @ $1,230; and Mar Crude, +$0.89 @ $54.29
· T-storm Weather: In Argentina, widespread heat occurs into the weekend as upper-level high pressure passes and keeps maximums in the 90s. It is most likely for generalized rainfall of 1.00”-2.00” to occur with some pockets of higher amounts. To the north, scattered thunderstorms dot far northern and southern areas of Brazil over the next week (Goias, Mato Grosso and Rio Grande do Sul) where 1.00”-2.00” falls, while upper-level high pressure keeps other areas (and Paraguay) drier than normal
· Corn: CH up $.01 @ $3.6925; CK up $.01 @ $3.7650. The funds sold 7 K on Friday
· SB: SH up $.0525 @ $10.3775; SK up $.0525 @ $10.4850. Funds: sold 8 SB; 2 SBM; 6 SBO. Crush: $.76, -$.01; LY: $.45
· Wheat: down $.02 @ $4.39; WK down $.02 @ $4.5350. Fund selling was estimated at 4 K on Friday
CORN/SORGHUM
· December 2017 corn futures on Fri. closed at $3.94 ¼; one year ago, December 2016 corn futures settled at $3.86 ½
· Consultant: The safrinha (double crop) corn in Brazil was 36% planted as of Feb. 16 vs. 33% last year and 32% avg. Planting is now only slightly ahead of last year due to the wet weather that has delayed the soybean harvest
· T-storm Weather: The remnant of a cool front causes new thunderstorms to form within the northern two-thirds of Brazil’s growing belt into the first week of March. Remaining safrinha (double crop) corn planting may be slowed
· The 2017 projected crop insurance price average of December 2017 corn futures from Feb. 1-17 is $3.969
· Export Inspections released at 10 AM CST; Corn, 45.1 mbu needed; 49.4 last week. Milo—3.9 needed; 8.1 last week
SOYBEANS/WHEAT
· Consultant: Recent rains have slowed Brazil’s soybean harvest. Of the major soybean producing states, Parana is the furthest behind with AgRural estimating 20% of the crop harvested as of Feb. 16 compared to 43% last year
· The 2017 projected crop insurance price average of November 2017 soybean futures from Feb. 1-17 is $10.2213
· Export Inspections released at 10 AM CST; Soybeans, 18.0 mbu needed; 42.1 last week
· T-storm Weather: Near-normal rain occurs across U.S. HRW wheat in the central/southern Plains over next two weeks
· Export Inspections released at 10 AM CST: Wheat, 23.2 needed; 11.3 last week
ENERGY
· Mixed: CLH17, +$0.89 @ $54.29; EBJ, +$0.97; EBH-CLH, $2.85, +$0.07; RBH, +$.0004;NGH, -$0.085; HOH, +$.0331
· Cash ethanol markets were mostly weaker on Friday: Chicago off 1 ¼; New York eased ½; Gulf, Tampa and Dallas down 1; while LA was unchanged at $1.69 ½ per gallon
· Ethanol RINs declined on Fri.: 2015’s off 1 ¾ at 43-46; 2016’s down 2 ¾ at 43-46 ½; & 2017’s fell 2 7/8 to 43-47
· The Mar RBOB/Mar ethanol spread eased $.0129, to -0.00340/gallon, premium ETOH
LIVESTOCK/POULTRY ;
· Choice boxed beef values firmed 42-cents on Monday to $190.91 and are up $2.65 compared to last week
· Cash cattle trading was active Friday with prices fully steady compared to the prior week at $119-$120 in the South
· USDA mandatory pork carcass cutout was 64-cents higher on Monday at $84.39 but is down 34-cents vs. a week ago
· CME Lean Hog Index gained $0.41 on Fri. to $77.07. April futures were $0.95 higher but are $6.295 below the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather