HIGHLIGHTS

• MARKET TREND—Higher @ 5:45 am—CH, +$.01; SH, +$.0375; WH, +$.0275; KWH, +$.0375  
• MACRO:  U.S./China trade talks to take place Jan 7-8 at vice-ministerial level.  Asia: Mostly firm-Nikkei, -2.26%; Shanghai, +2.05%;Hang Seng, +2.24.  EUROPE: Higher—DAX, +1.77%; FTSE, +1.35%; CAC, +1.38%.  WALL STREET: Futures are higher:  DOW, +310; S&P, +36.75;NAS, +177.75.  EXTERNALS: Feb crude: +$1.10 @ $48.19; Gold: -$1.20@ $1,294; Mar $ Index, -.133 @ 95,745. Del’y: 01/07: SBM, 288; SBO, 50; RR, 162; SB, 1,100

·       T-storm Weather: In Brazil, scattered thunderstorms shift from south to north through Sunday, producing 1.00" to 2.00" south and 0.75" to 1.50" north.  A notably drier and warmer period follows in most areas and lasts for at least 5-7 days as upper-level high pressure forms to suppress rain and induce some heat.  In Argentina, numerous thunderstorm clusters affect central and northern areas going forward, producing heavy totals of 2.00" to 4.00"

·       CH, up $.01 @ $3.8125; CK, up $.01 @ $3.8850.  Large fund buying reported yesterday at 10 K                  

• SH, up $.0375 @ $9.1625; SK, up $.0350 @ $9.29.  Funds: bought 5 K SB; 3 K SBM, 4 K SBO. Board Crush: $0.97, +1; LY: $1.10 
• WH, up $.0275 @ $5.1650; WK, up $.0275 @ $5.2275.  Thursday the funds bought an estimated 6 K          

 

              CORN/SORGHUM

·    &nb​sp;  The USDA on Thu. indicated it will have to delay Jan. 11 crop reports if the federal government is not funded today

·       Consultant: To be able to plant safrinha (double crop) corn earlier than normal this year, Brazilian farmers increased planting of early maturing soybeans.  In Mato Grosso & Parana, ~40-50% of the beans are earlier maturing varieties

• T-storm Weather: For full-season corn in central Brazil, forecasted hot & dry trend next week most likely breaks down in 10-14 days to allow rain to return; however, uncertainty exists & only scattered rain is forecast Jan. 14-15 forward
• Weekly EIA report detailing ethanol production and stocks is scheduled to be released at 10:00 am CST

SOYBEANS/WHEAT

·       Consultant: Hot & dry weather in December accelerated Brazil soybean maturity.  In drier areas, farmers are reporting that beans are maturing 20-30 days earlier than anticipated, resulting in small seeds & irreversible yield losses

• T-storm Weather: In Argentina, soil moisture continues to increase for soybeans over next two weeks; wetter north

·       NWS forecast for January: equal chances of above or below normal precip & temps for U.S. Southern Plains wheat

·       T-storm Weather: In Argentina, rain this week will be not be heavy in thesouth where ~40% of wheat is unharvested

ENERGY

·       Higher:  CLG19, +$1.10 @ $48.19; EBH, +$1.31 @ $57.26; EBH-QCLH, +$0.18; RBG, +.0273; NGG, +.088; HOG, +.0372

·       EIA Report Estimates (API): crude oil, -3.1 (-4.5); Gasoline, +2.0 (+8.0); Distillates, +1.6 (+4.0).  Estimates for ethanol production and stocks were unavailable

·       Chicago ethanol rose $.00875 to $1.25625; basis values were mixedr: New York, +$.01125 @ $.17875; Gulf, -$.00375 @ $.09375; Dallas, +$.00125 @ $.12375; Tampa, -$.00375 @ $.24875; and LA, -$.020875 @ $.22875    

·       RINs were mostly weaker: 2017’s, -$.0163 @ 14 -16; 2018’s, -$0.02125 @ 17¾- 19; 2019’s, -$.0275 @ 20-22                             

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·       The Feb RBOB/Jan ethanol spread expanded $.0159 on Thursday to+$.075500/gal

 LIVESTOCK/POULTRY            ​                        &​nbsp; 

• Choice boxed beef values eased 15-cents on Thursday to $216.49, but are still $1.19 higher compared to last week 
• Light-to-moderate cash cattle trading developed Thu. in Nebraska, Kansas & Texas at $125—steady with last week

·       USDA mandatory pork carcass cutout value firmed 25-cents on Thu. to $68.55, but is down 29-cents vs. a week ago 

• CME Lean Hog Index gained $0.17 on Thu. to $53.25.  February futures firmed $0.45, and are $8.90 above the index

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