Information provided may include opinions of the author and is subject to disclosures found at the end of this document.

HIGHLIGHTS

·      TRENDS—Lower: CH, -$.0150; SH, -$.0250; WH, -$.0250; KWH, -$.0150 

·      What caught my eye: Noted the trade is expecting SBM sales of 200-500 K MT tomorrow.  The low end of the range would put the past 4 weeks at all time seasonal high, in excess of 325 K/week. This should push Feb crush to a new record, above 165 mbu 

·      Coronavirus spreads to India, equities back-peddle. Asia: Weaker: Nikkei, -1.72%; Shanghai, closed; Hang Seng, -2.62%; EUROPE: Weaker—DAX, -0.90%; FTSE, -0.62%; CAC, -1.18%.  WALL STREET: Futures, down—DOW, -191; S&P, -58.25; NAS, -33.75.  EXTERNALS: March crude, -$1.07 @ $52.25; Gold: +$9.00 @ $1,585; Mar $ Index, +.061 @ 97.880.

• T-storm Weather®: Organized t-storms affect all South American corn and soybean areas at various times the next two weeks. Above-normal rainfall is only likely in southern Brazil and Paraguay from heavy t-storms through Monday as a cool front passes and dissipates.  Central and northern Brazil experience a few isolated t-storms until a cool front reaches the region next Tue.-Thu. (Feb. 4-6) and then dissipates the following few days
• CH, dn $.0150 @ $3.8275; CK, dn $.0150 @ $3.88.  The funds sold 5 K—demand worries persist     
• SH, dn $.0250 @ $8.9050; SK, dn $.0250 @ $9.0450.  Funds: sold 4 K SB; 2 SBM & bot 2 SBO.  Board crush: $1.05, -1; LY, $0.98,-; 
• WH, dn $.0250 @ $5.5975; WK, dn $.0250 @ $5.5875.  The funds sold futures for the 4 th straight session, 7 K Wednesday                 

CORN/SORGHUM

·    ​  Export Sales to be released at 7:30 am CST.  Trade expects 24-47 mbu for 19/20 corn

·      Argentine exporters requested no new export licenses the past week, down from 529 K MT in the year ago week as producer selling remains sub-par

·      Consultant: Deral says full-season corn in the state of Parana in southern Brazil is 5% in vegetative development, 21% pollinating, 54% filling grain, 20% mature and 1% harvested

·      Ethanol grind: Total of 1,029,000 barrels/day for week end Jan. 24—down 20,000 v. prior week and up 1.7% v. 2019

SOYBEANS/WHEAT

·      Export Sales report.  Trade expects 15-37 for 19/20 soybeans; 200-500 for 19/20 soymeal; and 8-40 for 19/20 soyoil

·      Consultant: Most of the rain LW in Brazil occurred across the Central and North regions with the South staying mostly dry.  Rains should continue in the north this week, with the south mostly dry but improved rain chances later

·      T-storm Weather®:  Upcoming thunderstorms in Argentina are primarily limited to Tue.-Thu. when a cold front helps produce 0.75" to 1.50" (preceded and followed by dry but generally cool weather).

·      Export Sales report.  Trade expects 11-26 mbu for 19/20 all wheat

·      Brazil harvest reached 4.2% last week, compared to 13.0% in 2018/19.  Mato Grosso is most advanced at 14% with the other states basically 1-2% complete

ENERGY

·      Down: CLH20, -$1.07 @ $52.25; EBH, -$1.21 @ $58.60; EBH-QCLH, -.12; RBH, -.0335; NGH, -.024; HOH, -.0389

·      Chicago ethanol was $.04275 higher at $1.35; basis values versus Chicago lower:  NYC, -$.03525 @ $.10; Gulf, -.03775 @ $.10; Dallas, -.0425 @ +$.0650; Tampa, -.03775 @ +$.16; LA, -$.03775 @ +$.19

·      Ethanol RINs values were firm: 2018’s, +0.50 @ 9 1/2 -10 ½; 2019’s, +1.25 @ 11 ½ -12 ½; 2020’s, +0.50 @ 17 ½-18 ¼                               &n​bsp;                        &n​bsp;                       &nb​sp;                       &nbs​p;           

·     &n​bsp;The February RBOB/February ethanol spread narrowed $.0022 yesterday, to $.1870/gallon       

LIVESTOCK/POULTRY                                    &nbs​p;   

• Choice boxed beef slipped 7-cents on Wednesday to $213.52 and is down $0.99 versus a week ago
• Live cattle futures ranged from $.40 to $.55 lower; the hog complex was again off sharply

·      USDA mandatory pork carcass cutout value plummeted $4.67 on Wed. to $70.38, down $7.33 versus last week 

·      CME Lean Hog Index rose $0.66 on Wed. to $62.40.  February futures were off $1.925 & are $1.900 above the index      

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