HIGHLIGHTS

• MARKET TREND—Firm:  CH, $.01; SF, +$.0450; WH, +$.0625; KWH, +$.0575
• MACRO:  Futures are mixed after Friday’s sell-off left all 3 major U.S. indices in correction territory—global growth worries.  Asia: Modestly higher--Nikkei, +0.62%; Shanghai, +0.16%; Hang Seng, -0.03%. EUROPE: Lower—DAX, -0.15%; FTSE, -0.24%; CAC, -0.44%.  WALL STREET: Futures are mixed: DOW, -11; S&P, 0; NAS, +3.00.  EXTERNALS: Jan crude: +$0.44 @ $51.64; Dec19 Gold: +$2.40 @ $1,275; Dec $ Index, -.190 @ 97.240. Dely: SBO, 154; C, 134; HRW, 0; SRW, 51

·       T-storm Weather: Rains are needed in southern Brazil and Paraguay, and a stormier period unfolds with time (especially Thursday-Friday forward).  Drier than normal weather coincides with heat over the next week in northern Brazil, followed by a wetter period as upper-level high pressure breaks down.  In Argentina, cool and dry weather unfold over the next several days, but not before another round or two of heavy thunderstorms central and north 

·       CH, up $.01 @ $3.8575; CK, up $.01 @ $3.9325.  Managed money accounts purchased an estimated 4 K on Friday          

• SF, up $.0450 @ $9.05; SH, up $.0425 @ $9.18.  Funds: Sold 3 K SB, 1 SBM & 3 K SBO. Board Crush: $0.89, unch; LY: $1.03 
• WH, up $.0625 @ $5.3625; WK, up $.06 @ $5.4250.  The funds sold 4 K to close out the week                  

CORN/SORGHUM

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·       T-storm Weather: In southern Brazil, the ongoing period of drying generally continues for 4-7 more days, followed by occasional thunderstorms; rainfall of 2.00”-4.00” expected across a wide area of full-season corn the next two weeks

·       USDA’s  latest Feed Outlook report indicated total grain consuming animal units for the 2018/19 marketing year are 100.9 million, which is down 0.2 million from November but 2.0% higher than the previous year

·       Consultant: Early soybean planting in Mato Grosso, Brazil to support earlysafrinha (double crop) corn planting in ‘19

·       Export Inspections released at 10 am CST; Corn, 48.8 mbu needed; 34.5 last week.  Milo—2.2 needed; 0.7 last week

SOYBEANS/WHEAT

·       Consultant: Widespread dryness has developed over the last 2-3 weeks for southern Brazil soybeans.  Reports are coming in of poor germination and spotty stands, especially for the later planted soybeans

·       T-storm Weather: In southern Brazil, the ongoing period of drying generally continues for 4-7 more days, followed by occasional thunderstorms; rainfall of 2.00”-4.00” expected across a wide area of soybeans over the next two weeks

·       Export Inspections released at 10 am CST; Wheat, 24.8 mbu needed; 15.4 last week

• T-storm Weather: Heavy rain impacts central and northern Argentina this week, but southern areas only receive a few showers and thunderstorms within a cool period.  This should aid drying for wheat harvesting in Buenos Aires

ENERGY

·       Higher: CLF19, +$0.44 @ $51.64; EBG, +$0.64 @ $60.92; EBG-QCLG, +$0.20; RBF, +.0166; NGF, -.167; HOF, +.0173

·       Chicago ethanol rose $.00475 Friday to $1.22350; basis values were mixed firmer: New York, -$.01225 @ $.1590; Gulf, -$.00475 @ $.12650; Dallas, +$.00025 @ $.10650; Tampa, +$.00025 @ $.23650; and LA, +$.05525 @ $.23650    

·       Ethanol RINs were lower/unch: 2017’s, -0.25 @ 21-21 ½; 2018’s, -.0025 @ 23-23 ½; 2019’s, unch @ 26-27                            

·  &​nbsp;    The Jan RBOB/Jan ethanol spread closed $.0519 lower at  +$.1763/gal 

 LIVESTOCK/POULTRY                ​                      ​

• Choice boxed beef declined $1.51 on Friday to $210.96 and is down $3.33 compared to last week
• Light-to-moderate cash cattle trade developed Fri. with prices in the South pegged at $119—up $1 v. the prior week
• USDA mandatory pork carcass cutout fell $1.35 on Friday to $70.51 and is $1.36 lower compared to a week ago
• CME Lean Hog Index eased $0.19 on Fri. to $55.17.  February futures declined $0.325 but are $9.33 above the index

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

 

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