HIGHLIGHTS
· MARKET TREND—mostly weaker: CH, down $.0150; SF, up $.0225; WH, down $.0225; KWH, down $.0075
· MACRO: Wall Street hopes to open higher. ASIA-mixed in light trading; Toshiba books $850 million loss, falls 11+%: Nikkei, -0.01%; Hang Seng, +0.83%; Shanghai, -0.39%. EUROPE—mixed: FTSE, +0.37%; DAX, -0.04%; CAC, -0.08%. Wall STREET: Futures point to a positive start: the DOW, +33; S&P, +5.25; NASDAQ, +14.75. EXTERNALS: $ Index, +.208 @103.215; Gold, +$3.90 @ $1,141.20; Feb Crude, +$0.23 @ $54.14
· T-storm Weather: Upper-level high pressure suppresses rainfall across the northeast ~35% and ~25% of first-crop corn and soybeans in Brazil over the next 10 days; much of this region received minimal rainfall over the last week. To the south, heavy rainfall ended dryness in Argentina over the weekend, causing monthly deficits to turn into surpluses in a matter of just days. Although several days of heat begin later this week, several days with thunderstorms follow to maintain the wetter pattern
· Corn: CH down $.0150 @ $3.5350; CK down $.0150 @ $3.5975. The funds bought 20 K on Tuesday—Argentine weather worries
· SB: SF up $.0225 @ $10.17; SH, up $.0175 @ $10.2625. Funds—Bot 15 SB, 8 SBM, 5 SBO. Board Crush: $.71, $.00; LY, $.53
· Wheat: WH down $.0225 @ $4.0725; WK down $.02 @ $4.1950. The funds opened the week buying 15 K
CORN/SORGHUM
· Consultant: The situation of full-season corn in southern Brazil is mixed. In the states of Minas Gerais and Parana, the full-season corn is expected to do fine, but there are dry weather problems with corn in parts of Rio Grande do Sul
· T-storm Weather: In key corn areas of Argentina, a several-day period of heat starts Thu.-Fri. Warming occurs in advance of more rain Sat.-Tue., with 1.00”-3.00” amounts expected but just away from the small area still dry
· ATI Research: U.S. corn balance sheet; 16/17 carryout estimated at 2.577 bbu
· ATI Research: U.S. sorghum balance sheet; 16/17 carry-out pegged at 29 mbu
SOYBEANS/WHEAT
· Consultant: Nationwide Argentina soybean harvest estimate is unchanged at 56.0 MMT
· ATI Research: U.S. soybean balance sheet; 16/17 carry-out is estimated at 482 mbu
· T-storm Weather: At some point in January, high pressure that is suppressing rainfall across soybeans in northeast Brazil is probable to lose its grip on the area, but it will take time to determine the manner in which this will occur
· ATI Research: U.S. SRW wheat balance sheet; 16/17 carryout projected at 194 mbu compared to 157 last year
· T-storm Weather: Most U.S. wheat areas stay dry over the next five days, except in SRW areas of the Delta and Southeast where significant rainfall of 0.75” to 1.50” unfoldsSaturday-Sunday (Dec. 31-Jan. 1)
ENERGY
· Mixed: CLG17, +$0.23 @ $54.14; EBG, +$0.39; EBG-CLG, $2.33, +$.14; RBG, -$.0010;NGG, -$.047; HOG, +$.0108
· A mixed trend persisted in cash ethanol markets on Tuesday: Chicago and Gulf declined 1 ½; New York fell 10 ½; Tampa and Dallas gained 2; and LA was 1 lower at $1.84 per gallon
· Ethanol RINs higher: 2015’s up ¾ to 85-86 ½; 2016’s gained ¾ to 85-86 ½; and 2017’s added 1 to 85-87
· The Jan RBOB/Jan ethanol spread gained $.0366 on Tuesday, to $.09980/gallon, premium RBOB
LIVESTOCK/POULTRY  
· Choice boxed beef values gained 27-cents on Tuesday to $198.54, and are the highest since Aug. 26
· 5-Area Weekly Weighted Average Steer price up $3.75 v. last week to $115.14/cwt, but is $8.26 lower vs. last year
· USDA mandatory pork carcass up 95-cents Tue. to $81.54, is $2.82 higher vs. last week & the highest since July 27
· CME Lean Hog Index was down $0.04 to $58.14. February futures gained$1.55 and are $6.61 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather