HIGHLIGHTS

• MARKET TREND—(5:24 am): CH, +$.0175; SF, +$.0350; WH, +$.0025; KWH, +$.0050
• MACRO:  DOW achieves its largest one-day gain ever but the celebration looks short-lived as futures are down significantly this morning.  Asia: Mostly lower--Nikkei, +3.88%; Shanghai, -0.61%; Hang Seng, -0.67%.  EUROPE: Mostly lower—DAX, -1.54%; FTSE, -0.79%;CAC, +0.07%.  WALL STREET: Futures are sharply lower:  DOW, -344;S&P, -38.00; NAS, -113.50.  EXTERNALS: Feb crude: -$0.74 @ $45.48;Dec 19 Gold: +$2.80 @ $1,307; Mar $ Index, -.308 @ 96.260

·      T-storm Weather: In Brazil, scattered thunderstorms occur within the northern two-thirds of the growing belt over the next 10- 14 days, producing near-normal to moderately below-normal rain totals of 2.25"-4.50".  In southern Brazil, however, below-normal rain & temps dominate over the next 7 to 10 days.  In Argentina, numerous heavy thunderstorms begin today & continue in varying areas over next 7-10 days, producing heavy totals of 2.25"-4.50" central & south (compared to normal rain of ~1.50")

·      CH, up $.0175 @ $3.75; CK, up $.01750 @ $3.83.  The funds sold 4 K after trading resumed following the holiday              

• SF, up $.0350 @ $8.7350; SH, up $.0375 @ $8.8675.  Funds sold 6 SB, 3 SBM & 2 SBO. Board Crush: $0.98, +1; LY: $1.00
•  WH, up $.0025 @ $5.1025 WK, down $.0025 @ $5.1750.  Funds:  sold 3 K on Wednesday         

CORN/SORGHUM

·​;      Consultant: Argentina corn production estimate for 2018/19 is lowered 0.5 MMT this week to 40.5 MMT.  Outside of the core production area, some of the earlier planted corn was impacted by late-season frosts & more recently by hail 

• T-storm Weather: In Argentina, heavy rains (2.25”-4.50”) affect early-crop corn the next 10 days.  The first round of significant rain begins tonight & Fri. across southeast half of the growing belt, followed by more rain Sat.-Sun. forward
• U.S. corn export inspections for the week ending Dec. 20 were 39.2 mbu vs. 24.4 mbu last year.  Accumulated corn exports for the first 16 weeks of the 2018/19 crop year totaled 669 mbu compared to 388 mbu last year (+72%)
• March 2019 corn futures on Wednesday closed at $3.73 ¼--the lowest settlement price for the contract since Nov. 29

SOYBEANS/WHEAT

·      Consultant: Argentina soybean production estimate for 2018/19 is lowered 1.0 MMT this week to 56.0 MMT. 

·      T-storm Weather: In Argentina, heavy rains (2.25”-4.50”) affect soybean areas the next 10 days.  The first round of significant rain begins tonight & Fri. across southeast half of the growing belt, followed by more rain Sat.-Sun. forward

• January 2019 soybean futures on Wed. closed at $8.70--the lowest settlement price for the contract since Nov. 26

·      MGE March 2019 wheat futures on Wednesday made a contract low of $5.48

·      T-storm Weather: Drought coverage, intensity diminished significantly the last month for EU, Russia, & Ukraine wheat

ENERGY

·      Lower:  CLG19, -$0.74 @ $45.48; EBG, -$0.83 @ $53.64; EBG-QCLG, -$0.090; RBG, -.0280; NGG, +.001; HOG, -.0096

·      Chicago ethanol $.00150 weaker at $1.21600; basis values were firmer: New York, +$.00150 @ $.17400; Gulf, +$.00650 @ $.09900; Dallas, +$.00150 @ $.10400; Tampa, +$.00150 @ $.23900; and LA, +$.00150 @ $.23400    

·      RINs were weaker: 2017’s, -$0.25 unch @ 18 ½- 19; 2018’s, -0.75 @ 21 -21 ½; 2019’s, -1.50 @ 24-25                            

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·      The Jan RBOB/Jan ethanol spread recovered Monday’s loss, rising $.0886 to +$.0984/gal

 LIVESTOCK/POULTRY                                  &n​bsp;    

• Choice boxed beef increased $1.64 on Wednesday to $215.69, and is $3.99 higher compared to last week 
• 5-Area Weekly Weighted Average Steer price up $0.67 v. last week at $118.81/cwt, but is $1.16 lower vs. last year
• USDA mandatory pork carcass cutout fell 67-cents on Wednesday to $69.00, but is still 77-cents higher vs. a week ago
• CME Lean Hog Index declined $0.55 on Wed. to $53.32.  February futures gained $0.075 & are $7.055 above the index

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

 

             

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