HIGHLIGHTS

·       TRENDS—Mixed: CH, -$.0075; SF, +$.03; WH, -$0.0275; KWH, -$.0075.  Del’y: SBM, 100; SBO, 689; C, 65; ETOH, 0; HRW, 4

·       What caught my eye:  Brazil corn export competition appears to be drying up as the line-up is reported at 75 mbu , down from 102 million just a week ago and WELL BELOW the 142 mbu reported a year ago at this time

·       Sharp drop in PRC exports to the U.S. weighs on equities. ASIA: Mostly firm—Nikkei, +0.33%; Shanghai, +0.08%; Hang Seng, -0.01%; EUROPE: Weaker—DAX, -0.13%; FTSE, -0.10%; CAC, -0.36%.  WALL STREET—Futures, weaker—DOW, -20; S&P, -2.00; NAS, -6.50.  EXTERNALS: Feb crude: -$0.62 @ $58.48; Gold: +$2.50 @ $1,468; $ Index, -.116 @ 97.584

·       T-storm Weather®: A mix of weather affects South America corn and soybean production areas over the next two weeks as: 1) low humidities likely worsen drought in southern Argentina, while 2) hot upper-level high pressure turns the northeast third of first-corn and soybeans in Brazil drier, and 3) the main storm track aligns near southern Brazil and Paraguay from next weekend forward to improve soil moisture with time

• CH, dn $.0075 @ $3.76; CK, dn $.0075 @ $3.81375.  The funds were said to be even in Friday’s trade
• SF, up $.03 @ $8.9250; SH, up $.0350 @ $9.0725.  Funds, bot 5 K SB; 8 K SBO; sold 3 K SBM.  Board crush: $1.12, -3; LY, $.93,-3; 
• WH, dn $.0275 @ $5.2175; WK, dn $.02 @ $5.2575.  The funds were also estimated to be even in wheat on Friday

CORN/SORGHUM

·       T-storm Weather®: in the U.S., challenging weather continues today for remaining corn harvest in MI, ND, and WI due to  light rain and snow.  A couple of systems also occur later this week, producing some rain & snow across the north

• Export Inspections released at 10 am CST; Corn, 41.3 mbu needed; 26.9 last week.  Milo—2.2 needed; 5.2 last week
• Consultant: corn exports from Brazil in 2019 could set a new record of 41.0 MMT.  As a result, domestic corn prices in Brazil are rising, with some suggesting Brazil may need to import corn prior to its safrinha (double crop) harvest
• ATI Research: as exportable supplies of corn from Brazil decline, there is more attention on Argentina crop prospects

SOYBEANS/WHEAT

·       T-storm Weather®: most soybean areas in central & northern Brazil receive less to much-less than 3.00” of rain over the next two weeks, which is below the normal amount of ~4.00”.  This includes ~33% of Brazil’s total soybean crop

·       Export Inspections released at 10 am CST; Soybeans, 30.5 mbu needed; 56.9 last week

·       Export Inspections released at 10 am CST; Wheat, 18.7 mbu needed; 9.1 last week

• T-storm Weather®: most U.S. HRW wheat areas are forecast to be dry this week, while SRW wheat sees normal to above normal precip

ENERGY

·       Down: CLG20, -$0.62 @ $58.48; EBG, -$0.53 @ $63.86; EBG-QCLG, +.100; RBG, -.0201; NGG, -.092; HOG, -.0136

·       Chicago ethanol was a ½ cent weaker on Friday at $1.4825; basis values versus Chicago were unch/firm:  NYC, +$.015 @ $.0875; Gulf, +$.015 @ $.1125; Dallas, unch @ +$.0575; Tampa, unch@ +$.1625; LA, +$.0050 @ +$.2125

·       Ethanol RINs values were unch/weak: 2018’s, unch @ 6 ½ -7; 2019’s, unch @ 12 ½ -13; 2020’s, -.25 @ 19 ½ -20                                              &​nbsp;                       &n​bsp;                       &nb​sp;          

·      &​nbsp;The January RBOB/January ethanol spread widened $.0253 Thursday to $.2724      

LIVESTOCK/POULTRY              &nb​sp;                        

• Choice boxed beef was $1.04 lower on Friday at $224.56 and is down $7.56 versus a week ago 
• Light cash cattle trade developed Fri. afternoon at $188 in Nebraska, $1.00 higher than the prior week's weighted avg.

·       USDA mandatory pork carcass cutout value gained 55-cents on Fri. to $81.43 and is up 26-cents versus the prior week

·       CME Lean Hog Index was up $0.15 on Fri. to $58.49.  December futures fell $0.450 but are $2.635 above the index   

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