HIGHLIGHTS
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MARKET TREND—Higher: CH: up $.01; SF: up $.0975; WH: up $.0325; KWH: up $.0225. Weekend Argentine rains disappoint
· MACRO. Senate narrowly passes tax plan, markets react favorabley. ASIA—Mostly lower: Nikkei, -0.49%; Shanghai, -0.22%; Hang Seng, +0.22%. EUROPE: Firmer: DAX, +1.23%; FTSE, +0.82%; CAC, +0.99%. WALL STREET—Higher—DOW futures, +213; S&P, +16.00; NAS, +30.25. EXTERNALS: $ Index:+.339 @ 93.180; Gold: -$6.40 @ $1,272; Jan crude: -$0.61 @ $57.75/bl. Del’y: SBM, 294; SBO, 155; C, 1,270; HRW, 27; SRW, 437; EU Wheat, 0
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T-storm Weather: Areas of surface-level high pressure leave Argentina, South Brazil and Paraguay drier than normal over the next 10 to 14 days in a weather pattern that is typical of a La Niña event. Only ~25% to ~50% of normal rainfall occurs, increasing the coverage and intensity of topsoil and/or subsoil dryness. Temperatures also turn warm to hot in Argentina from late-week forward. Conversely, heavy rains continue in the Center-West and Southeast of Brazil with 4.00”-8.00” over the next two weeks
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CH, up $.01 @ $3.5975; CK, up $.0125 @ $3.6775. The funds bought 4 K on Friday
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SF, up $.0975 @ $10.04; SH, up $.0950 @ $10.1550. Funds: bot 4 SB, 3 SBM, sld 1 SBO. Board Crush: $1.02, -$.02; LY, $.75
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WH, up $.0325 @ $4.4175; WK, up $.0275 @ $4.5375. Wheat buying by the funds was also pegged at 4 K on Friday
CORN/SORGHUM
·  T-storm Weather: Normal rain next two weeks is ~2.25” for Argentina corn, but totals are only expected to be 0.50”-1.50”. Temps across Argentina also turn much warmer late-week forward, reaching the 90s in central/western areas
· Friday’s USDA Grain Crushings and Co-Products Production report indicated total corn consumed for alcohol & other uses was 523 mbu in October 2017. That’s was up 5% from September 2017 and up 3% from October 2016
· Consultant: Eventual safrinha (double crop) corn acreage in Brazil will depend on domestic corn prices and Feb/March weather. Domestic corn prices in Brazil are expected to be somewhat higher in 2018, but weather is still uncertain
· Export Inspections released at 10 am CST; Corn, 41.0 mbu needed; 25.1 last week. Milo—4.4 needed; 4.2 last week
SOYBEANS/WHEAT
· T-storm Weather: Round after round of thunderstorms impact central/northern Brazil soybeans over next two weeks
· Friday’s USDA Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks report indicated soybeans crushed for crude oil was 176 mbu in October 2017 vs. 145 mbu in September 2017 and 176 mbu in October 2016
· Export Inspections released at 10 am CST; Soybeans, 37.0 mbu needed; 58.0 last week
· Export Inspections released at 10 am CST; Wheat, 20.2 mbu needed; 12.7 last week
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Market is assessing impact of widespread and heavy rain across wheat in southeastern Australia over the weekend
ENERGY
· Weaker: CLF18, -$0.61 @ $57.75; EBG -$0.38 @ $63.35; EBG-QCLF, +$0.23; RBF, -.0135; NGF, +.034; HOF, -.0157
· On Friday, cash ethanol markets remained mixed: Chicago was quoted at $1.33, down $0.0125; Basis to Chicago—New York, +14 ½; Gulf, +9; Dallas, +6 ½; Tampa, +20 ½; and LA, +21
· On Friday, ethanol RINs weakened.: 2016’s off 2 at 86 ½-88 ½; 2017’s down 2 at 87-89; & 2018’s eased 2 at 87-89
· The Dec RBOB/Dec ethanol spread widened an additional $.0062 on Friday, to +$.3916/gallon
LIVESTOCK/POULTRY      
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Choice boxed beef values firmed $1.35 on Friday to $205.99, but are still $5.00 lower vs. last week
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February live cattle futures on Friday closed at $121.975—the lowest settlement price for the contract since Oct. 23
· USDA mandatory pork carcass cutout value was steady on Friday at $82.59, but is up 92-cents vs. a week ago
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CME Lean Hog Index was $0.27 higher Fri. at $63.26. December futures gained $1.00 & are $2.015 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather