HIGHLIGHTS
· MARKET TREND: Steady opening expected. Corn is steady in Europe, Milling wheat, +$01 ½. Dailian SB, -$.25; corn, -$.13 ¼
· MACRO: Light trading day expected. ASIA: Higher: Nikkei, +0.26%; Hang Seng, +0.51%; Shanghai, +0.61%. EUROPE: Lower: FTSE, -0.11%; DAX, -0.13%; CAC, -0.26%. Wall STREET: Futures are higher: DOW futures, +48; S&P, +3.50; NASDAQ, +6.00. EXTERNALS: $ Index, -.204 @ 101.555; Gold, -$1.900 @ $1,187.60; Dec Crude, $0.63 @ $47.34
· T-storm Weather: A strong system triggers thunderstorms across Argentina, southern Brazil, and Paraguay over Saturday-Tuesday.; 1.00" to 2.00" of rain occurs from central Argentina and points north, but likely leaves parts of southern Argentina dry. Occasional thunderstorms continue next week in Brazil and Paraguay as the associated cool front dissipates, further alleviating dryness in southern areas
· Corn: CZ closed $.025 lower @ $3.5075 Wed; CH, was up $.0025 @ $3.59250 . The funds were even in Wednesday trading
· SB: SF was up $.0425 @ $10.3425 Wed; SH, +$.0425 @ $10.43. Funds—bot 4 SB, 15 SBO, sold 5 SBM. Board Crush: $.75, +.02; LY, $.72
· Wheat: WZ closed down $.0575 @ $4.0150; WH down $.0375 @ $4.2375. The funds sold 4 K in pre-Thanksgiving activity
CORN/SORGHUM
· Export Sales to be released at 7:30 AM CST. Trade expects 35-47 for 16/17 corn
· T-storm Weather: Northern half of Argentina corn benefits from rain this weekend, but southern areas—e.g. Buenos Aires (BA)—only see light totals, and another period of drying immediately follows. BA includes ~33% of Arg corn
· The U.S. Environmental Protection Agency (EPA) on Wednesday set the Renewable Fuel Standard for corn ethanol next year at 15.0 billion gallons. EPA had proposed requiring 14.8 billion gallons of ethanol earlier this year
· Ethanol grind: 1,014,000 barrels/day for week end Nov. 18—down 0.3% vs. last week but 0.6% higher vs. last year
SOYBEANS/WHEAT
· Export Sales report. Trade expects 44-55 mbu for 16/17 soybeans; soymeal, 200-400 K MT; soyoil, 10-30
· T-storm Weather: The remnants of multiple cool fronts cause rain to occasionally dot much of Center-West and Southeast Brazil into next week, maintaining adequate soil moisture for soybeans into next month
· Consultant: Argentina soybeans have gotten off to a sub-par start and there are concerns about a dry weather pattern
· Export Sales report. Trade expects 13-20 mbu for 16/17 all wheat
· T-storm Weather: An array of evidence point to significant precipitation in the U.S. Corn Belt and Delta through early December, which is likely to alleviate drought in SRW wheat areas
ENERGY
· Mostly down: CLF16, -$.63 @ $47.34; EBF, -$0.60; EBF-CLF, $1.06, +$0.02; RBZ, -$.0168; NGZ, +$.012; HOZ, -$.0134
· A mixed trend was noted in cash ethanol markets on Wednesday: Chicago added ¾; New York eased ¼; Gulf firmed ½; Dallas declined 1 ½; Tampa down 2; and LA was 1 ½ higher at $1.82 ½ per gallon
· Ethanol RINs strongly higher: 2015’s up 4 ½ to 87 ½-95; 2016’s gained 4 ½ to 87 ½-95; & 2017’s added 4 ¾ to 87 ½-95
· The Dec RBOB/Dec ethanol inverse edgecd up $.0021 to -$0.1933/gallonWednesday
LIVESTOCK/POULTRY    
· Choice boxed beef increased $1.42 on Wednesday to $186.64, and is $4.04 higher vs. a week ago
· Moderate cash cattle trading developed on Wednesday at $110 to $112 in the South—$1-$3 higher vs. last week
· USDA mandatory pork carcass cutout eased 50-cents on Wed. to $72.72, and is 84-cents lower compared to last week
· CME Lean Hog Index was up $0.03 on Wed. at $47.52. December futures gained $0.45 & are $2.23 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather