HIGHLIGHTS

• MARKET TREND—Firmer: CH: up $.0075; SF: up $.02; WH: up $.0175; KWH: up $.0250.

·       MACRO.  This morning’s line is cautious investors ahead of Fed and ECB rate decisions (with a +.25% hike expected in the U.S.).  ASIA—Mostly firmer: Nikkei, -0.47%; Shanghai, +0.70%; Hang Seng, +1.49%.  EUROPE: Mostly weaker: DAX, -0.15%; FTSE,+0.09%; CAC, -0.15%.  WALL STREET—Futures are firmer—DOW, +16; S&P, +0.25; NAS,+8.50.  EXTERNALS: $ Index: -.090 @ 93.990; Gold: +$1.80 @ $1,240; Jan crude: +$0.37@ $57.51/bl.  Del’y: SBM, 110; SBO, 79; C, 266; ETOH, 0; HRW, 18; SRW, 206

• T-storm Weather: Other than a few t-storms in SW Argentina the next 24-36 hours, mainly dry weather will continue there and in S Brazil and Paraguay.  Sat-Sun could bring widely scattered showers in Argentina and subsequently into S Brazil/Paraguay.  Several days of hot, dry weather will follow along with the possibility of 1-2” rain amounts later next week and/or the following week
• CH, up $.0075 @ $3.4850; CK, up $.0075 @ $3.5675.  Report day found the funds selling 5 K         
• SF, up $.02 @ $9.7775; SH, up $.0225 @ $9.8950.  Funds: sold 4 SB, 4 SBM, 0 SBO.  Board Crush: $1.07, 0; LY, $.70 
• WH, up $.0175 @ $4.1250; WK, up $.02 @ $4.26.  Selling continues, 2 K yesterday              

CORN/SORGHUM

• WASDE—Ending U.S. corn stocks were forecast 50 mbu lower on a like increase in corn production for ethanol as milo use has so far been very low this year
• WASDE—Milo inventories up 2 million to 21; USDA sees more exports and reduced ethanol grind
• Weekly ethanol production—production est @1.089 mb (1.077-1.100; 1.109 LW);  stx, 22.7 mb (22.5-23.0; 22.5 LW)
• CH closes at a contract low of $3.47 3/4, below the year-ago close of $3.61
• WASDE—Argentina and Brazilian corn production was unchanged at 42.0 and 95.0 (41.0 & 98.5 LY)

SOYBEANS/WHEAT

• WASDE--soybean inventories decline 20 million as 1^st quarter exports suffer from heightened South American competition (down 25) but seed use is increased 5 million as acreage is expecte to rise to 91.0
• WASDE—Arg/Brazil crop estimates continue at 57 and 108 this month (57.8 and 114.1 LY)
• SF18 closes at $9.75 ¾, lowest level since mid-November and nearly $.50 below the 12/13/16 close

·       WASDE—USDA boosts foreign wheat feeding estimate 1.9 MMT to 139.4; reduces U.S. exports 25 mbu

·       T-storm Weather: Dry weather continues over the next 10 to 14 days in HRW wheat areas of the U.S. Plains; better rain/snow chances are likely in an area extending from the Delta and much of the SRW producing belt

ENERGY

·       Firmer: CLF18, +$.37 @ $57.51; EBG +$0.46 @ $63.80; EBG-QCLF, +$0.08; RBF,+.0053; NGF, +.016; HOF, +.0057

·       Cash ethanol markets were again softer with Chicago down 3 1/8 cents to $1.2925. Basis levels versus Chicago were (+1/8 to +1 5/8’s) firmer with New York, +8 ¾; Gulf, +6 ¾; Dallas, +1 ¾; Tampa, +15 1/5 and and LA, +17 ¼

·       IEA (API) estimates: crude, -2.9 (-7.4); gasoline, +2.3 (+2.3); distillates, +1.2 (+1.5) 

·       Ethanol RINs gained a ½ cent: 2016’s, 73 ½ -76 ½; 2017’s, 74-77; and 2018’s, 74 ¼ - 77 ¼

·       The Jan RBOB/Jan ethanol spread narrowed $.0080 to +$.40260/gallon  

  LIVESTOCK/POULTRY                        &​nbsp;            

• Choice boxed beef values fell $1.47 on Tuesday to $204.06, and are $5.02 lower vs. last week
• February live cattle futures closed at $119.15 on Tuesday, up $1.42 ½

·       USDA mandatory pork carcass cutout value fell 53-cents on Tuesday to $80.32, and is $3.71 lower vs. a week ago 

• CME Lean Hog Index eased $0.20 on Tue. to $64.97.  December futures firmed $0.15, but are $1.22 below the index

Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather