HIGHLIGHTS

·         Market Trend—Trading begins at 8:30—biases: Steady/Lower

·         Global markets were mixed on the 1^st 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

• Export demand for corn remains light, but it is the holidays
• Corn closes out 2013 as the worst performer on the S&P GSCI Index of 24 commodities, losing nearly 40%
• 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

• DDGS said to be displacing SBM in some hog and poultry rations
• China said to have booked some South American beans for June and July to start the week
• 7 MMT/11% larger world canola crop boosting use in biodieasel, October US at 82 mil lbs versus only 16 last year
• Dryness in Central Turkey’s wheat growing areas are a concern with little rain expected the next 7-10 days
• 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                &n​bsp;                        &n​bsp;                 

Choice boxed beef values gained $2.72 yesterday and have increased $3.02 over the last four trading days
• USDA 5-area weekly average steer price for LW was $134.22, up $3.74 from the week before and a new record high
• After falling $2.66 over the previous two trading days, the USDA pork carcass cutout value firmed 25-cents yesterday
• 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