HIGHLIGHTS
· MARKET TREND—Mostly Lower: CH, down $.0125; SH, down $.0450; WH, steady; KWH, down $.0150
· MACRO—Global markets take a pause after DOW/S&P make 5 consecutive record highs. ASIA-Mostly higher: Nikkei, -0.47%; Hang Seng, +0.47%; Shanghai, +0.51%. EUROPE—Weaker: FTSE, -0.49%; DAX, -0.28%; CAC, -0.45%. Wall STREET-Pre markets are a bit lower: DOW futures, -31; S&P, -3.75; NASDAQ, -1.25. EXTERNALS: $ Index, -0.364 @ 100.880; Gold, +$5.20 @ $1,237; and Mar Crude, +$0.34 @ $53.45
· T-storm Weather: Outlook unchanged as several storms move across Argentina Thu.-Fri. forward, triggering t-storms and producing generalized rainfall of 2.00" to 6.00" over the next 10 days. To the north, the wet period is ending in Mato Grosso, but near- and above-normal rainfall continue through 10 days as scattered t-storms occur along the western edge of a large upper-level high off the Atlantic coast. Sharply drier weather occurs elsewhere in most other areas of Brazil during the period.
· Corn: CH down $.0125 @ $3.7750; CK down $.0125 @ $3.8475. The funds were back in a big way yesterday, buying 20 K
· SB: SH down $.0475 @ $10.5650; SK down $.0450 @ $10.6725. Funds: bot 7 SB; 7 SBM; sold 3 SBO. Crush: $.75, -$.02; LY: $.51
· Wheat: unch @ $4.5475; WK down $.0025 @ $4.68. The funds bought 5 K on Wednesday
CORN/SORGHUM
·   Corn Export Sales released 7:30 CST—Trade estimates: 35-43 mbu with 20.1/wk needed
· Milo Export Sales released 7:30 CST—Needed: 4.1
· The USDA’s February Feed Outlook raised GCAU’s 200 K to 96.0 million as the result of higher COF and dairy cattle #’s. And, led to a 34 mbu increase in the ATI feed/residual estimate to 5.554 bbu (USDA: 5.6). The implied Dec-Aug total represents a 12.5%/370 mbu increase over last year
· Weekly ethanol production was off 15 K to an average of 1.05 mb/day; inventories rose 415 K to 22.5 million barrels
· Stellar corn demand from Other Western Hemisphere markets—YTD exports to these markets up 45% at 236 mbu. All time high and not over—unshipped sales are likewise a new seasonal high at 116 mbu, 72% MORE than this time LY
SOYBEANS/WHEAT
· Soybean Export Sales—Trade estimates: 18-28 with 5.9/wk needed:
· 160.6 Jan NOPA crush tops trade average by 1.5; Sep-Jan total (census-adjusted) 11 mbu ahead of USDA forecast
· Product Export Sales—SBM—trade estimating 150-350 with 103/wk needed, 103; SBO-8-30 with 8.2 K/wk needed
· Wheat Export Sales—trade estimating 11-18 with 11/wk needed
· Wednesday’s 4.54 ¾ WH17 close was the contract’s highest close since $4.50 on August 23rd, 2016
ENERGY
· Firmer: CLH17, +0.34 @ $53.45; EBJ, +$0.32; EBH-CLH, $2.64, $0.00; RBH, +$.0058;NGH, -$0.006; HOH, +$.0144
· Cash ethanol markets were mixed: NY held at $1.60; LA was off ½ cent to $1.70 1/2; the Gulf, Dallas and Tampa all edged up a ½ cent and Chicago was quoted 1 ¼ higher at $1.51 ½
· Ethanol RINs were firmer: 2015’s up 1 ¼ to 45 ½ -48; 2016’s, 1 ½ higher, 47 ¼ -49 ¾; 2017’s, up 1 ¼, 47 ½- 50
· The Mar RBOB/Mar ethanol spread inverted slightly, up nearly a pennty to -0.00510/gallon, premium ETOH
LIVESTOCK/POULTRY ;
· Choice boxed beef values eased 2-cents on Wednesday and are $1.09 lower vs. last week
· Cash cattle markets remained quiet with bids in the South at $116 while asking prices are around $122
· USDA mandatory pork carcass cutout gained 13-cents on Wed. to $85.21 and is up 38-cents v. a week ago
· CME Lean Hog Index was up $0.69 on Wed. to $75.31. April futures fell $0.525 and are $4.535 below the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather