HIGHLIGHTS

• MARKET TREND—Lower: CH, -$.0275; SH, -$.0675; WH, -$.0475; KWH, -$.0425

·       MACRO:  Global bourses are off rather sharply this morning, a continuation of the 6^thlargest 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

• 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
• CH, down $.0275 @ $3.5875; CK, down $.0275 @ $3.6675.  Fund selling on Fridaywas said to be 1 K                     
• 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
• WH, down $.0475@ $4.42; WK, down $.0450 @ $4.5525.   The funds ended the week selling 3 K

CORN/SORGHUM

• 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

• 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

• 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                                   &nb​sp; 

• Choice boxed beef values declined 50-cents on Friday to $209.10, but are still up $2.27 compared to last week 
• 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

• 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