HIGHLIGHTS

• MARKET TREND—Mixed @ 4:45 am—CH, -$.0050; SH, -$.0175; WH, +$.0050; KWH, +$.0124  
• MACRO:  Apple announces a rare cut to its sales forecast; expected tech weakness weighs on Wall Street futures.  Asia: Weaker-Nikkei, Holiday; Shanghai, -0.04%; Hang Seng, -0.26%.  EUROPE: Lower—DAX, -1.44%; FTSE, -0.43%; CAC, -1.06%.  WALL STREET: Futures are lower: DOW, -351; S&P, -40.75; NAS, -174.25.  EXTERNALS: Feb crude: -$0.42@ $46.12; Dec 19 Gold: +$6.10 @ $1,321; Mar $ Index, -.303 @ 96.120.Del’y: 01/04: SBM, 514; SBO, 75; RR, 16; SB, 1,091

·      T-storm Weather: In Brazil, scattered thunderstorms affect southern areas Thu.-Fri. and northern areas Sat.-Sun.  A dry and hot period follows as upper-level high pressure passes, limiting rainfall next week away from Rio Grande do Sul where dryness diminishes.  In Argentina, numerous thunderstorm clusters form over the next two weeks (including each of the next five days), producing heavy rainfall central and north

·      CH, dn $.0050 @ $3.7525; CK, down $.0050 @ $3.83.  Fund activity to begin 2019 was said to be even                 

• SH, dn $.0175 @ $9.0525; SK, dn $.02 @ $9.1750.  Funds: bought 5 K S; 5 K SBM, 3 K SBO. Board Crush: $0.96, +2; LY: $1.05 
• WH, up $.0050 @ $5.0725; WK, up $.0025 @ $5.1325.  On Wednesday, the funds bought back 2 K                         

CORN/SORGHUM

·      T-storm Weather: In Argentina, widespread coverage of near- and above-normal rainfall is likely for corn production areas with totals to range from 1.25” to 2.75” south to 2.75” to 5.50” north, or approximately twice normal

·      Consultant: In northern Argentina corn growing areas, there are ~800,000 ha left to plant (~15% of the country’s total acres).  If forecast for heavy rain there verifies, there is a possibility that remaining acres could be planted very late

·      U.S. corn export inspections as of Dec. 27 totaled 705 mbu compared to 417 mbu last year.  To reach the annual USDA forecast of 2.450 bbu, weekly shipment must average 49.9 mbu per week through August

·      March 2019 corn futures on Wednesday closed at $3.75 ½; one year ago, March 2018 corn futures settled at $3.53

SOYBEANS/WHEAT

·      T-storm Weather: In Brazil, except for heavy rain across soybeans in Rio Grande do Sul, only 1.75” to 3.50” is expected over the next fwo weeks with above-normal temps.  Normal rain over the next 2 weeks ranges from ~3.50” to ~5.00

·      Consultant: Argentina soybean crop est. is steady at 56.0 MMT.  If forecast for heavy rain for northern areas verifies, there could be some repeat localized flooding; in contrast, there is some dryness concern across southwestern areas

• ATI Research: Bias on near-term U.S. all wheat exports is 15-20 mbu per week

·      T-storm Weather: In the EU, mostly neutral weather is forecast the next 7-10 days for wheat in France and Germany

ENERGY

·      Mixed:  CLG19, -$0.42 @ $46.12; EBH, -$0.26 @ $54.66; EBH-QCLHG, +$0.12; RBG, +.0042; NGG, -.031; HOG, +.0043

·      Chicago ethanol gained $.01875 to $1.2475; basis values were weaker: New York, -$.01875 @ $.16750; Gulf, -$.00375 @ $.09750; Dallas, -$.00375 @ $.12625; Tampa, -$.01375 @ $.25250; and LA, -$.02375 @ $.23750    

·      RINs were mostly weaker: 2017’s, -$1.12 @ 15 ½ -17 ¾; 2018’s, -$.0625 @ 20 ¾- 20 1/8; 2019’s, unch @ 23-24 ½                             

·    &nbs​p; The Feb RBOB/Jan ethanol spread eased very little, $.0001 to 31 Monday to +$.05960/gal

 LIVESTOCK/POULTRY                    &nbs​p;                  

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• Choice boxed beef values firmed $1.29 on Wednesday at $216.64, and are up 95-cents vs. a week ago
• 5-Area Weekly Weighted Average Steer price up $3.61 v. last week at $122.52/cwt, but is $0.32 lower v. last year

·      USDA mandatory pork carcass cutout value fell 14-cents on Wednesday to $68.30, and is 70-cents lower vs. last week 

• CME Lean Hog Index eased $0.15 on Wed. to $53.08.  February futures gained $0.725, & are $8.62 above the index

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