HIGHLIGHTS
· MARKET TREND—Mostlyl lower: CH, down $.0050; SF, up $.0325; WH, down $.0150; KWH, down $.02
· MACRO: Global stocks are mixed after Wall Street’s move into record territory yesterday. ASIA-mostly higher: Nikkei, -0.26%; Hang Seng, +0.37%; Shanghai, +1.15%. EUROPE—lower: FTSE, -0.15%; DAX, -0.04%; CAC, -0.49%. Wall STREET: Futures are mixed with the DOW, +4; S&P, -1.25; NASDAQ, -2.50. EXTERNALS: $ Index, -.163 @103.125; Gold, +$4.60 @ $1,136.10; Feb Crude, +$0.26 @ $53.56
· T-storm Weather: Two storm systems and cool fronts trigger thunderstorms across much of Argentina, southern Brazil, and Paraguay over the next 7 to 10 days – most notably in unusually-dry corn and soybean areas of central and southern Argentina where developing drought breaks. To the north, mainly dry and increasingly hot weather unfold over the next week across the northeast ~35% and ~25% of first-crop corn and soybean production in Brazil
· Corn: CH down $.0050 @ $3.4975; CK down $.0050 @ $3.5650. The funds followedon Tuesday selling 5 K
· SB: SF up $.0325 @ $10.0850; SH, up $.0325 @ $10.19. Funds—Sold 8 SB, 5 SBM, 8 SBO. Board Crush: $.71, +.04; LY, $.61
· Wheat: WH down $.0150 @ $4.0175; WK down $.0150 @ $4.1450. The funds were even yesterday
CORN/SORGHUM
· Consultant: Harvest of full-season corn in southern Brazil will begin early January; vast majority rated good/very good
· T-storm Weather: While the near-term forecast of warm and dry conditions across full-season corn in northeast Brazil is not ideal, most of this area was wet leading into the period and rain chances improve toward the end of the month
· ATI Research: Despite a high level of unshipped sales, the sluggish pace of U.S. corn exports in relation to the level needed to reach the USDA annual forecast suggests the forecast may be too optimistic
· Ethanol margins: $0.48 per gallon—down from $0.54 last week but above $0.25 in 2015. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· T-storm Weather: An unseasonable dry period affects Brazil soybeans across/adjacent Bahia, Goias & Minas Gerais over the next week. However, pattern is unlikely to last given late-December & January is wettest period of the year
· Consultant: While farmers in northeast Brazil are concerned the weather may be turning drier, Mato Grosso and other areas of central Brazil continue to get ample rain, which is benefitting crops that are setting and filling pods
· ATI Research: U.S. HRS export sales over the last 4 weeks totaled 36 mbu—the highest total since at least 1997
· T-storm Weather: Rain-snow chances this week remain low for U.S. HRW wheat in central and southern Plains
ENERGY
· Higher: CLG17, +$0.26 @ $53.56; EBG, +$0.30; EBG-CLG, $2.08, +$0.03; RBG, +$.0045; NGG, +$.063; HOG, +$.0053
· EIA estimates (API): Crude oil, -2.3 (-4.1); Gasoline, +1.1 (-2.0); Distillates, -0.9 (-1.5)
· A mixed trend persisted in cash ethanol markets on Tuesday: Chicago eased 5 ¼; New York increased 4; Gulf declined 4; Dallas down 1 ½; Tampa up 1; and LA was ¾ higher at $1.85 ½ per gallon
· Ethanol RINs were firmer: 2015’s, 2016’s and 2017’s all increased 1 ¼ to 94-96
· The Jan RBOB/Jan ethanol spread moved to a carry, off $.0557 to +$0.02660/gallon
LIVESTOCK/POULTRY    
· Choice boxed beef values increased $2.24 on Tue. to $197.63, and up $5.90 vs. last week & highest since Aug. 29
· Over the past 7 trading days, choice boxed beef values have gained $8.69 (4.6%)
· USDA mandatory pork carcass firmed 73-cents Tue. to $78.72, is $3.65 higher vs. a week ago & highest since Sep. 20
· CME Lean Hog Index firmed $0.09 Tue. to $58.14. February futures declined $2.10 but are still $5.86 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather