HIGHLIGHTS
· Market Trend—Trading begins at 8:30—biases: Steady/Lower
· Global markets were mixed on the 1st day of the New Year. Two separate Chinese manufacturing indices showed a slight decline in December activity, suggesting a slowing economy. Japan was closed while the Shanghai Composite fell .3%; S Korea markets dropped 2.2% and Malaysia and Thailand were also lower. EU equity markets are lower: Frances’s CAC-40 is off 1%; the DAX, -.5% and the FTSE, -.33%. US futures are weaker: S&P, down 3; Dow, off 16 and the Nasdaq, 10 lower. Gold is up $15; energies are mostly weaker and the $ Index is up ½ point at 80.7 on the March
· Wire services report ¼ to 3/4” showers for Cordoba, Santa Fe and N BA the past 48 hours. More scattered showers are likely today, heavier North, then dry through Monday with temps running near to above normal. La Pampa and S BA was mostly dry the past 2 days. In Brazil, Mato Grosso received ¼ to ¾” the past two days; Parana and RGDS had from ¼ to 1 ½” during the period. Scattered showers should be fairly common for the southern growing areas the next few days while amounts in the north will be a little less. The far NE areas of South Africa had limited rainfall over the holiday; temps reach 100+ on the high side. Light showers possible east with the western regions generally dry through Monday
· Mar Corn closed Down $.0150 at $4.22 Tues; May Down $.0150 at $4.30250. The funds sold 2 K to close out 2013
· Jan SB closed Down $.1575 at $13.1250; Mar SB Down $.1625 at $12.9250. Funds sold 6 K SB, 5 K SBM and bought 2 K SBO
· Mar Wheat closed Up $.0475 at $6.0525; May Wheat Up $.0450 at $6.12. The funds bought 3 K on Tuesday
CORN/SORGHUM
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Export demand for corn remains light, but it is the holidays
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Corn closes out 2013 as the worst performer on the S&P GSCI Index of 24 commodities, losing nearly 40%
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South African white maize prices soar to a 17-year high, 2013 output down 20% and its very dry in the North West
SOYBEANS/WHEAT
· Deliveries: No SB, 1 SBM and 749 SBO
· Soybean futures fall 7 ½% in 2013; wheat prices off 22%--Dow Jones
· India announces 160 K MT export tender with bids due January 8; trade talk has over 500 K offered through mid-Jan
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DDGS said to be displacing SBM in some hog and poultry rations
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China said to have booked some South American beans for June and July to start the week
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7 MMT/11% larger world canola crop boosting use in biodieasel, October US at 82 mil lbs versus only 16 last year
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Dryness in Central Turkey’s wheat growing areas are a concern with little rain expected the next 7-10 days
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Indian Ag Attache expects producers there to plant 8+% MORE wheat acres planted through December 20
ENERGY
· Energy markets—mostly lower: QCLG14,-$0.23 to $98.19; QRBG, -$0.0242; QNGG, +$.023 and QHOG, -$.0336
· Cash ethanol markets were again mixed ahead of the New Year: NY was steady; LA gained 2 cents; Dallas and Tampa were both a penny higher while Chicago and the Gulf each declined 2 cents per gallon
· RINs found 2012’s up 1 to 32 ½-34; 2013’s gained 2/3’s of a cent to 33-34 ¼ and & 2014’s were 33-34 ¼, up 3/8’s
· The January RBOB/January ethanol spread widened nearly 3 cents, to $.8748/gallon
LIVESTOCK/POULTRY    
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Choice boxed beef values gained $2.72 yesterday and have increased $3.02 over the last four trading days
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USDA 5-area weekly average steer price for LW was $134.22, up $3.74 from the week before and a new record high
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After falling $2.66 over the previous two trading days, the USDA pork carcass cutout value firmed 25-cents yesterday
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The USDA’s Iowa/Minnesota average cash lean hog price gained $1.11 yesterday to $77.39
Sources: Bloomberg, Dow Jones, AP, T-storm Weather