HIGHLIGHTS

·        MARKET TREND—Weaker:  CH, down $.0175; SH, down $.07; WH, down $.0375;  KWH, down $.0450

·        MACRO:  Fed policy statement positioning/strong business survery results buoy Europe markets.  ASIA-Mixed:  Nikkei, opened lower but rallied to close up 0.56%; Hang Seng, -0.18%.   EUROPE-firmer: FTSE, +0.75%; DAX, +1.00%; CAC, +1.19%.  Wall STREET-futures look positive:  DOW, +40; S&P, +5; NASDAQ, +25.75.  EXTERNALS: $ Index, +.084 @ 99.565;  Gold, +$1.00 @ $1,210.80;and Mar Crude is up $0.27 @ $53.08

·        T-storm Weather: Scattered thunderstorms dot much of Brazil and Paraguay through the weekend, including both drier and wetter areas.  Heavier rain follows next week in northern areas as the stormy pattern continues, including drier and wetter areas.  Heavy thunderstorms pound central and southern Argentina Thursday-Saturday, including both drier and wetter areas; 1.00" to 3.00" of rain occurs with locally higher amounts, likely focused on areas that were flooded earlier this month

·        Corn: CH down $.0175 @ $3.58; CK down $.1075 @ $3.6525.  Fund selling totaled 6 K yesterday

·        SB: SH dn $.07 @ $10.1750; SK dn $.0675 @ $10.2750.  Funds: even SB; sold 2 K SBM and bot 3 K SBO.  Crush: $.84; LY: $.54

·        Wheat: WH down $.0375 @ $4.17; WK down $.0350 @ $4.30 . The funds bought 4 KTuesday                            &​nbsp;

 

 

CORN/SORGHUM

·        The period for utilizing December 2017 corn futures to determine the projected 2017 crop insurance price for corn begins today and runs through the month of February

·        Consultant: Brazil corn crop est. unch at 86.0 MMT.  Planting of safrinha (double crop) corn underway in Mato Grosso, but is progressing slower than expected due to wet weather.  Est. of safrinha acreage increase--4% to as much as 20%

·        T-storm Weather: Heavy rain is plausible Feb. 5-10 across safrinha (double crop) corn areas of Mato Grosso, Brazil

·        Ethanol margins: $0.12 per gallon—up from $0.08 last week but below $0.26 in 2016.  EIA report at 9:30 AM CST

SOYBEANS/WHEAT

·        The period for utilizing November 2017 soybean futures to determine the projected 2017 crop insurance price for soybeans begins today and runs through the month of February

·        Consultant: The 2016/17 Brazil soybean est. was left unchanged this week at 103.0 MMT.  Generally, the growing season has been very favorable for most of Brazil with the exception of dryness in eastern and northeastern areas

·        NWS forecast for February: Above normal temps for all U.S. winter wheat, below normal precip for Southern Plains

·        T-storm Weather: Heavy rain Feb. 5-8 across U.S. Delta, SE third to half of Corn Belt; includes southern SRW wheat 

ENERGY

·        Higher:  CLH17, +$0.27 @ $53.08; EBJ, +$0.25; EBH-CLH, $2.76, -$0.02; RBG, +$.0157;NGH, +$0.072; HOH, +$.0072

·        EIA estimates (API): Crude oil, +2.2 (+5.8); Gasoline, +0.3 (+2.9); Distillates, -0.8 (+2.3)

·        A mixed trend was noted in cash ethanol markets on Tuesday: Chicago up ¼; New York down ¼; Gulf firmed ½; Dallas eased a penny; Tampa added 1; and LA was ½ lower at $1.60 per gallon

·        Ethanol RINs declined on Tuesday: 2015’s down 3 at 43-50; 2016’s off 3 5/8 at 43-50 ¼; and 2017’s fell 3 ½ to 43-51

·        The Mar RBOB/Feb ethanol spread settled at +0.032608/gallon, up $.0071 with the premium to RBOB     

  LIVESTOCK/POULTRY                                  &nbs​p;                 

·        Choice boxed beef values declined 48-cents on Tuesday to $192.87, but are still up $1.13 compared to the prior week

·        ATI Research: USDA Cattle inventory report confirmed a 3^rd year of growth in the total cattle herd (101.8% of 2016)

·        USDA mandatory pork carcass cutout value firmed $1.08 on Tuesday to $83.88, and is $2.95 higher vs. a week ago

·        CME Lean Hog Index was up $0.17 on Tue. to $68.61.  February futures soared $1.975 and are $0.465 above the index       

Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather