HIGHLIGHTS

• MARKET TREND—Mixed @ 5:20 am—CH, +$.0025; SH, +$.0250; WH, -$.0225; KWH, -$.0250  
• MACRO:  Not much in the way of news; China & the U.S. resume trade talks.  Asia: Higher-Nikkei, +2.44%; Shanghai, +0.72%; Hang Seng, +0.82%.  EUROPE: Weaker—DAX, -0.29%; FTSE, -0.41%; CAC, -0.31%. WALL STREET: Futures are slightly lower:  DOW, -4; S&P, -3.25; NAS,-14.25.  EXTERNALS: Feb crude: +$1.25 @ $49.21; Gold: +$6.80 @ $1,293; Mar $ Index, -.250 @ 95.500. Del’y: 01/08: SBM, 497; SBO, 37; RR, 31; ETOH, 246; SB, 1,139

·       T-storm Weather: In Brazil, below-normal rain and above-normal temps are expected in the heart of the growing belt over the next 10 to 14 days as upper-level high pressures limits thunderstorm coverage, only leading to sharply below-normal totals of 1.00” to 2.00” for ~40% and ~55% of first-crop corn and soybean production.  In Argentina, numerous waves of energy flow along the southern edge of an upper-level high, triggering  heavy thunderstorms every one to three days over the next two weeks

·       CH, up $.0025 @ $3.8325; CK, dn $.0025 @ $3.9075.  The funds ended the 1^st week of the new year buying 6 K                  

• SH, up $.0250 @ $9.12; SK, up $.02 @ $9.2350.  Funds: bought 6 K SB; 4 K SBM, 3 K SBO. Board Crush: $0.97, +1; LY: $1.10 
• WH, dn $.0225 @ $5.1475; WK, dn $.0250 @ $5.2025.  Fund buying on Friday: 2 K    

 CORN/SORGHUM

·       The USDA on Friday confirmed it is delaying release of Jan. 11 crop reports due to the federal government shutdown

·       Export Inspections released at 10 am CST; Corn, 49.9 mbu needed; 36.0 last week.  Milo—2.3 needed; 1.1 last week

·       T-storm Weather: Weekend rain across full-season corn in Brazil was near expectations; highest coverage was noted in Parana, Mato Grosso do Sul and Sao Paulo.  More rain is needed

·       Consultant: Excess rain in Argentina is being monitored.  Corn can be planted until mid-January without a yield loss if weather cooperates later in the growing season.  The area to watch is the north to see when the last corn is planted 

SOYBEANS/WHEAT

·       Export Inspections released at 10 am CST; Soybeans, 36.9 mbu needed; 24.9 last week

·       T-storm Weather: In Argentina, widespread coverage of heavy to locally very-heavy rainfall develops across soybean areas over the next two weeks.  Forecasted amounts: 2.75”-5.50” central & north in contrast with 1.25”-2.75” south

·       Consultant: The end of Argentina soybean planting may be delayed due to adverse weather (e.g. wet in north).  Late planted beans could still have an acceptable yield, but the risk of lower yields increases with any delay

·       Export Inspections released at 10 am CST; Wheat, 24.3 mbu needed; 13.8 last week

·       T-storm Weather: Cold temps with occasional rain/snow forecast next 7-10 days for wheat in EU, Russia & Ukraine

ENERGY

·       Higher:  CLG19, +$1.25 @ $49.21; EBH, +$1.36 @ $58.42; EBH-QCLH, +$0.12; RBG, +.0406; NGG, -.085; HOG, +.0412

·       Chicago ethanol rose $.01875 to $1.2750 on Friday; basis values were mostly lower: New York, -$.02375 @ $.1550; Gulf, +$.04125 @ $.1350; Dallas, -$.00875 @ $.1150; Tampa, -$.02375 @ $.22500; and LA, -$.00375 @ $.2250    

·       RINs were mostly weaker: 2017’s, -$.0050 @ 14 -15; 2018’s, -$0.0025 @ 17 ½ - 18; 2019’s, -$.0050 @ 20-21                          ​;   

·       The Feb RBOB/Jan ethanol spread narrowed $.0259 Friday to+$.04980/gal

 LIVESTOCK/POULTRY                               &nbs​p;      

• Choice boxed beef values fell $1.98 on Friday to $214.51, but are still  up 10-cents vs. a week ago
• Light-to-moderate cash cattle trading developed on Friday in parts of the North at $195—steady with last week

·       USDA mandatory pork carcass cutout value eased 17-cents on Friday to $68.38, and is 56-cents lower vs. last week 

• CME Lean Hog Index firmed $0.38 on Fri. to $53.63.  February futures declined $0.20, but are $8.32 above the index

Source: Bloomberg, Dow Jones, AP, DTN. T-storm Weather