HIGHLIGHTS
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MARKET TREND—Lower: CH, -$.0275; SH, -$.0675; WH, -$.0475; KWH, -$.0425
· MACRO: Global bourses are off rather sharply this morning, a continuation of the 6thlargest drop in the DOW ever, on Friday.. ASIA—Mostly weaker: Nikkei, -2.55%; Shanghai, +0.73%; Hang Seng, -1.09%. EUROPE: Lower: DAX, -0.94%; FTSE, -1.28%; CAC, -1.15%. WALL STREET—Sharply Lower —DOW futures, -163; S&P, -10.75; NAS, -17.00. EXTERNALS: $ Index: -.006 @ 89.030; Feb Gold: +$1.80 @ $1,336; Mar crude: -$.28 @ $65.17
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T-storm Weather: Weekend weather was within expectations of Friday’s report. In Argentina, mainly dry and hot weather continue through Thu. A strong system and cool front end the heat wave from south to north over Fri.-Sun., triggering scattered thunderstorms across a wide area, especially in central areas (Cordoba, Entre Rios and Santa Fe) where 0.75”-1.50” falls, but less-so to the south (Buenos Aires and La Pampa). Heavy rains (2.50”-5.00”) continue over the next week for northern Brazil crops
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CH, down $.0275 @ $3.5875; CK, down $.0275 @ $3.6675. Fund selling on Fridaywas said to be 1 K
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SH, dn $.0675 @ $9.72; SK, dn $.0675 @ $9.8375. Funds sold 4 SB, 3 SBM and 4 SBO. Board Crush: $1.08, -$.04; LY: $.75
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WH, down $.0475@ $4.42; WK, down $.0450 @ $4.5525. The funds ended the week selling 3 K
CORN/SORGHUM
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T-storm Weather: In Argentina, several days of dry & cool weather follow rain later this week. More thunderstorms form at some point(s) within Feb. 15-20; the end result is 1.25”-2.50” is probable next 2 weeks vs. 1.75”-2.50” normal
· Consultant: In Argentina, approximately 50% of the corn crop is pollinating or near pollination. This underscores the importance of near-term weather trends on yield potential
· Export Inspections released at 10 am CST: Corn 44.7 mbu needed; 39.1 last week. Milo—5.7 needed; 6.0 last week
· December 2018 corn futures Fri. closed at $3.92 ½, +$0.03 v. prior week. Last year, December 2017 settled at $3.92 ¾
SOYBEANS/WHEAT
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T-storm Weather: The wet pattern for soybean areas of northern Brazil changes Feb. 11-12. Thunderstorms develop across the south, as 1.75”-3.50” impacts the region Feb. 11-18. Less frequent rain occurs in the north over that time
· Export Inspections released at 10 am CST: Soybeans 30.1 mbu needed; 40.6 last week
· Consultant: Recent weather extremes across Brazil soybean producing areas may have capped top end yield potential
· Export Inspections released at 10 am CST: Wheat 21.1 mbu needed; 21.3 last week
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T-storm Weather: In the U.S., numerous light snows develop along the I-80 corridor of the Corn Belt and Plains into next weekend, including drought-stricken wheat in northern Kansas and northern Colorado, but unlikely to the south
ENERGY
· Lower: CLH18, -$.28 @ $65.17; EBJ, -$.54 @ $68.04; EBJ-QCLJ, -$.23; RBH, -.0104;NGH, +.017; HOH, -.0186
· On Friday, cash ethanol markets were higher: Chicago was quoted at $1.4375, up $0.025; Basis to Chicago—New York, +11 ¼; Gulf, +10 ¼; Dallas, +1 ¾; Tampa, +14 ¾; and LA, +20 ¼
· On Friday, ethanol RINs eased: 2016’s down ¼ at 61 ½-62; 2017’s off ¼ to 62 ½-63; and 2018’s fell ¼ to 63 ½-64
· The Mar RBOB/Feb ethanol spread shed $.0608 on Friday to close at +$.4090/gallon
LIVESTOCK/POULTRY  
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Choice boxed beef values declined 50-cents on Friday to $209.10, but are still up $2.27 compared to last week
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February live cattle futures on Friday closed at $126.85, the highest settlement price for the contract since Nov. 9
· USDA mandatory pork carcass cutout value fell 24-cents on Friday to $80.41, and is $1.37 lower vs. a week ago
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CME Lean Hog Index firmer $0.23 on Fri. to $74.10. February futures gained $0.375 and are $1.10 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather