HIGHLIGHTS

• MARKET TREND—Lower:  CH, -$.02; SF, -$.0050; WH, -$.05; KWH, -$.0625
• MACRO:  Same ol’, same ol’ . . . trade war fears continue to circulate; yesterday’s DOW action did little for investor confidence.  Asia: Weaker--Nikkei, -0.53%; Shanghai, -0.67%; Hang Seng, -1.62%. EUROPE: Lower—DAX, -0.82%; FTSE, -1.20%; CAC, -0.90%.  WALL STREET: Futures--Dead feline bounce?: DOW, +91; S&P, +14.00; NAS,+39.75.  EXTERNALS: Jan crude: -$0.09 @ $53.16; Dec Gold: -$4.60 @ $1,237; Dec $ Index, -.087 @ 96.815.  Dely: SBM, 44; SBO, 771; C, 2; HRW, 343

·       T-storm Weather: Dry and cool weather dominate Argentina, southern Brazil, and Paraguay over the next five days.  A warmer period begins over Sun.-Tue., which will allow a strong system to pass and produce significant rain in Argentina over Dec. 11-14, followed by rains further to the north in southern Brazil and Paraguay in 10 to 14 days.  Northern areas of Brazil will experience thunderstorms on many of the next 10 days, especially with northward extent

·       CH, dn $.02 @ $3.8275; CK, dn $.0150 @ $3.90.  3^rd straight day of fund buying, 6 K in yesterday’s trading session       

• SF, dn $.0050 @ $9.11; SH, dn $.01 @ $9.2275.  Funds: Bot 4 K SB, 0 K SBM and 3 K SBO. Board Crush: $0.98, -2; LY: $1.15 
• WH, dn $.05 @ $5.1750; WK, dn $.05 @ $5.2275.  The funds spent the day selling as much as they bought               

CORN/SORGHUM

• T-storm Weather: Rainfall coverage was limited in recent weeks in Argentina, but dryness is not a concern with at least 98% of early-crop corn having been near or wetter than normal over the last 30 days

·       Consultant: Argentina corn production est. for 2018/19 is unchanged this week at 41.0 MMT vs. 32.0 MMT last year

·       There are unconfirmed rumors that China is preparing to buy large amounts of U.S. corn and ethanol

·       Trade ideas for Dec. 11 USDA Supply/Demand report are that Ukraine corn production est. may increase 0.5-1.0 MMT

·       March 2019 corn futures on Tuesday closed at $3.84 ¾, the highest settlement price for the contract since Nov. 8

SOYBEANS/WHEAT

·       Consultant: Argentina soybean production is unchanged this week at 57.0 MMT with a neutral bias going forward.  Soybean planting was pegged at 40.7% as of late last week, which is 1% slower than last year

·       T-storm Weather: In Brazil, thunderstorms occur on many of the next 10 days across the northern two-thirds of the Northern production region, culminating in 2.50” to 5.00” across ~35% of total soybean production

• ATI Research: Bias on near-term U.S. all wheat exports is 13-18 mbu per week

·       T-storm Weather: Areas of rainfall over the next 7 to 10 days ease drought in the European Union, especially France and Germany

ENERGY

·       Lower: CLF19, -0.09 @ $53.16; EBG,-$0.20 @ $61.88; EBG-QCLG, -$0.10;RBF, -.0013; NGF, +.131; HOF, -.0022

·       Chicago ethanol edged up 1/8 to $1.22250; basis values were mixed: New York, dn ½ @ $.16250; Gulf, -.00125 @ $.12875; Dallas, -.01625 @ $.0975; Tampa, +.00375 @ $.19750; and LA, +.01375 @ $.19750    

·       Ethanol RINs were firmer: 2017’s, +1 ½ @ 11 ½-13; 2018’s, +1 3/8 @ 13 ¼ -15; 2019’s, +3/4 @ 16-17 ½                         

·       The Jan RBOB/Dec ethanol spread gained $.0070 on Tuesday, closing at +$.20840/gal 

 LIVESTOCK/POULTRY                                      

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• Choice boxed beef was 78-cents higher on Tuesday at $213.86 but is still 14-cents lower vs. a week ago
• February live cattle futures on Tuesday closed at $121.65, the highest settlement price for the contract since Nov. 2
• USDA mandatory pork carcass cutout firmed $1.18 on Tuesday to $69.78 and is up $3.01 compared to last week
• CME Lean Hog Index gained $0.02 on Tue. to $56.38.  December futures fell $1.15 but are $0.495 above the index

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

 

HIGHLIGHTS

• MARKET TREND—Lower:  CH, -$.02; SF, -$.0050; WH, -$.05; KWH, -$.0625
• MACRO:  Same ol’, same ol’ . . . trade war fears continue to circulate; yesterday’s DOW action did little for investor confidence.  Asia: Weaker--Nikkei, -0.53%; Shanghai, -0.67%; Hang Seng, -1.62%. EUROPE: Lower—DAX, -0.82%; FTSE, -1.20%; CAC, -0.90%.  WALL STREET: Futures--Dead feline bounce?: DOW, +91; S&P, +14.00; NAS,+39.75.  EXTERNALS: Jan crude: -$0.09 @ $53.16; Dec Gold: -$4.60 @ $1,237; Dec $ Index, -.087 @ 96.815.  Dely: SBM, 44; SBO, 771; C, 2; HRW, 343

·       T-storm Weather: Dry and cool weather dominate Argentina, southern Brazil, and Paraguay over the next five days.  A warmer period begins over Sun.-Tue., which will allow a strong system to pass and produce significant rain in Argentina over Dec. 11-14, followed by rains further to the north in southern Brazil and Paraguay in 10 to 14 days.  Northern areas of Brazil will experience thunderstorms on many of the next 10 days, especially with northward extent

·       CH, dn $.02 @ $3.8275; CK, dn $.0150 @ $3.90.  3^rd straight day of fund buying, 6 K in yesterday’s trading session       

• SF, dn $.0050 @ $9.11; SH, dn $.01 @ $9.2275.  Funds: Bot 4 K SB, 0 K SBM and 3 K SBO. Board Crush: $0.98, -2; LY: $1.15 
• WH, dn $.05 @ $5.1750; WK, dn $.05 @ $5.2275.  The funds spent the day selling as much as they bought               

CORN/SORGHUM

• T-storm Weather: Rainfall coverage was limited in recent weeks in Argentina, but dryness is not a concern with at least 98% of early-crop corn having been near or wetter than normal over the last 30 days

·       Consultant: Argentina corn production est. for 2018/19 is unchanged this week at 41.0 MMT vs. 32.0 MMT last year

·       There are unconfirmed rumors that China is preparing to buy large amounts of U.S. corn and ethanol

·       Trade ideas for Dec. 11 USDA Supply/Demand report are that Ukraine corn production est. may increase 0.5-1.0 MMT

·       March 2019 corn futures on Tuesday closed at $3.84 ¾, the highest settlement price for the contract since Nov. 8

SOYBEANS/WHEAT

·       Consultant: Argentina soybean production is unchanged this week at 57.0 MMT with a neutral bias going forward.  Soybean planting was pegged at 40.7% as of late last week, which is 1% slower than last year

·       T-storm Weather: In Brazil, thunderstorms occur on many of the next 10 days across the northern two-thirds of the Northern production region, culminating in 2.50” to 5.00” across ~35% of total soybean production

• ATI Research: Bias on near-term U.S. all wheat exports is 13-18 mbu per week

·       T-storm Weather: Areas of rainfall over the next 7 to 10 days ease drought in the European Union, especially France and Germany

ENERGY

·       Lower: CLF19, -0.09 @ $53.16; EBG,-$0.20 @ $61.88; EBG-QCLG, -$0.10;RBF, -.0013; NGF, +.131; HOF, -.0022

·       Chicago ethanol edged up 1/8 to $1.22250; basis values were mixed: New York, dn ½ @ $.16250; Gulf, -.00125 @ $.12875; Dallas, -.01625 @ $.0975; Tampa, +.00375 @ $.19750; and LA, +.01375 @ $.19750    

·       Ethanol RINs were firmer: 2017’s, +1 ½ @ 11 ½-13; 2018’s, +1 3/8 @ 13 ¼ -15; 2019’s, +3/4 @ 16-17 ½                         

<​p class="m_-2552051335983040754MsoListParagraphCxSpLast" style="margin: 0in 0in 10pt 0.5in; line-height: 16.8667px; font-size: 11pt; font-family: Calibri, sans-serif;"> ·       The Jan RBOB/Dec ethanol spread gained $.0070 on Tuesday, closing at +$.20840/gal 

 LIVESTOCK/POULTRY                                      

• Choice boxed beef was 78-cents higher on Tuesday at $213.86 but is still 14-cents lower vs. a week ago
• February live cattle futures on Tuesday closed at $121.65, the highest settlement price for the contract since Nov. 2
• USDA mandatory pork carcass cutout firmed $1.18 on Tuesday to $69.78 and is up $3.01 compared to last week
• CME Lean Hog Index gained $0.02 on Tue. to $56.38.  December futures fell $1.15 but are $0.495 above the index

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