HIGHLIGHTS
· Market Trend: Corn, Down 2-3; Soybeans, Down 1 Old; Up 2 New; Wheat, Down 4-5
· Crude is weaker this morning, contributing to mixed trade in Asia: the Hang Seng ended .87% lower; Shanghai rose .52% and the Nikkei is taking the day off. Greece is meeting with other Euro zone finance ministers today, likely to propose a bridge program with creditors and which is expected to receive a favorable response. Despite that, all of Europe is lower at mid-day with losses ranging from .36% (DAX) to .61% (CAC). NY is expected to open lower: DOW futures, -40; S&P, -3 ¾; NAS, -2 ½. Externals: crude is lower; the $ Index is up 1/5 of a point and March Gold futures, up $2.40 to $1,234.10
· T-storm Weather: The remnant of a cool front triggers multiple heavy thunderstorm clusters across / adjacent Paraguay and South Brazil through Sunday-Monday; 2.00" to 4.00" with locally higher amounts occur. Sharply drier weather occurs to the north as upper-level high pressure dominates, aiding soybean harvesting and second-crop corn planting. Moving forward, it remains most probable for thunderstorms to shift away from wet areas and into dry areas, but it will take another day or two to have more than low to moderate confidence. Most of Argentina stays drier than average over the next week with minor temperature fluctuations
· Mar Corn Down $.0225 at $3.8575; May Corn Down $.0275 at $3.9350. The funds sold 6 on Report Day
· Mar SB Down $.01 at $9.68; May Down $.0125 at $9.73. Funds sold 6 K SB; 4 K SBM and 7,000 SBO
· Mar Wheat Down $.0475 at $5.17; May Down $.0550 at $5.1675. Fund buying totaled 6 Kon Tuesday
CORN/SORGHUM   ;
· USDA WASDE report pegs U.S. corn ending stocks at 1.827 Bbu vs. the average trade estimate of 1.871 Bbu
· ATI Research: Corn production estimates for Argentina and Ukraine were increased 1.0 MMT and 1.45 MMT, respectively, vs. January. U.S. exports will be watched closely with increased competition from Argentina and Ukraine
· USDA report increased sorghum exports to 300 mbu reflecting strong sales and liftings by China
· T-storm Weather: Rainfall forecast for Center-West & Southeast Brazil next week may slow second-crop corn planting
SOYBEANS/WHEAT
· USDA WASDE report pegs U.S. soybean ending stocks at 385 mbu vs. the average trade guess of 402 mbu
· ATI Research: While demand for soymeal from regions other than China appears to be for real, the market is still looking at a huge increase in global soybean inventories
· T-storm Weather: Rainfall forecast for Center-West Brazil next week may slow soybean harvesting in the region
· USDA WASDE report pegs U.S. all wheat ending stocks at 692 mbu vs. the average trade estimate of 685 mbu
· ATI Research: Ample world supplies appear likely to continue to weigh on U.S. exports for 2014/15
ENERGY
· Futures are mostly lower this morning: QCLH15, -$.38 at $49.64; QRBH, -0.0071; QNGH, +$.093; and QHOH, -$.0176
· EIA estimates: crude, +4.0 (API: +1.6); Gasoline, +0.2 (+1.6); Distillates, -2.3 (+0.5)
· Cash ethanol markets were mixed yesterday: NY led on the up side, gaining 3 ½ cents; the Gulf was 2 higher; Dallas was quoted 1 ½ higher; Tampa & LA each lost 1 ½; Chicago increased 1 to $1.41 ½;
· RINs were steady/lower: 2013’s up 1/8 to 71-72 ¾; 2014’s steady at 73-74; and 2015’s were off 1/8 to 72-73
· The Mar RBOB/Mar Ethanol narrowed in $.0319/gallon to $.0893, premium RBOB
LIVESTOCK/POULTRY  
· Choice boxed beef values eased 5-cents on Tuesday and have declined $4.68 vs. last week
· Cash cattle are called steady to $2 higher this week with feedyards asking $164-165, but no packer bids
· After a 21-cents bounce on Monday, the USDA mandatory pork carcass cutout value fell 89-centsTuesday
· CME Lean Hog Index down $0.87 to $65.78. February futures up $0.25 to $61.52, but $4.26 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather