HIGHLIGHTS

• MARKET TREND—Lower:  CH, -$.0075; SF, -$.0475; WH, -$.0325; KWH, -$.0275
• MACRO:  China’s economy slows more than expected, retail sales at a 15-year low.  Asia: Sizable losses--Nikkei, -2.02%; Shanghai, -1.53%;Hang Seng, -1.62%.  EUROPE: Weaker as well—DAX, -1.08%; FTSE,-0.85%; CAC, -0.96%.  WALL STREET: Futures are down: DOW, -213;S&P, -2275; NAS, -71.00.  EXTERNALS: Jan crude: -$0.18 @ $52.40; Dec Gold: -$5.20 @ $1,238; Dec $ Index, +.429 @ 97.485. Dely: SBO, 53; C, 68; HRW, 0; SRW, 2

·       T-storm Weather: In northern Brazil, isolated thunderstorms form over the next 7 to 10 days, but widespread and organized rainfall likely holds for 7 to 10 days when a cool front shifts northward and develops a wetter pattern.  Numerous heavy thunderstorm clusters affect central and northern Argentina through Tue.-Wed. (Dec. 18-19), then focus on southern Brazil and Paraguay from Tue.-Wed. (Dec. 18-19) forward

·       CH, dn $.0075 @ $3.8350; CK, dn $.0075 @ $3.91.  Funds sold 4 K yesterday          

• SF, dn $.0475 @ $9.0250; SH, dn $.05 @ $9.1550.  Funds: Sold 9 K SB, 5 SBM & 3 K SBO. Board Crush: $0.89, +2; LY: $1.05 
• WH, dn $.0325 @ $5.3275; WK, dn $.0325 @ $5.3850.  Fund buying Thursday was estimated at 6 K            

  CORN/SORGHUM

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·       ATI Research: USDA Supply/Demand report this week indicatedcompetitor (Argentina, Brazil & Ukraine) corn exports are projected to surge 20 MMT/31% this year to 85 MMT.  This is the 2^nd largest year to year increase on record

• Consultant: In Argentina, the first phase of corn planting in many areas is nearing completion and farmers are starting on their second phase of corn planting.  The early planted corn is rated 9% poor to very poor & 50% good to excellent

·       T-storm Weather: In southern Brazil, a sharply wetter period next week breaks dryness across full-season corn areas

·       March 2019 corn futures on Thursday closed at $3.84 ¼; one year ago, March 2018 corn futures settled at $3.48 ½

SOYBEANS/WHEAT

• Unshipped 18/19 export sales of U.S. soybeans as of Dec. 6 were 390 mbu—down 21% from 496 mbu last year.  The sale of 1.13 MMT of beans to China announced on Thursday will be included in next week’s USDA Export Salesreport
• T-storm Weather: In southern Brazil, a stormy period starts Dec. 17-18; multiple thunderstorms occur over 10 days that follow, wiping out dryness concern for soybeans.  Substantial rain (2.50”-5.00”) affects wide area through Dec. 27

·       Consultant: Soybeans in Argentina are 54% planted compared to 53% last year and 58% for the 5-year average

·       Unshipped 18/19 export sales of U.S. all wheat as of Dec. 6 were 213 mbu—up 1% from 211 mbu last year

·       T-storm Weather: A dry period starts today in southern Argentina (Buenos Aires and La Pampa) for wheat harvesting

ENERGY

·       Lower: CLF19, -$0.18 @ $52.40; EBG, -$0.24 @ $61.21; EBG-QCLG, -$0.01; RBF, -.0194; NGF, -.198; HOF, -.0108

·       Chicago ethanol eased $.00375 higher to $1.21875; basis values were mostly firmer: New York, +$.00875 @ $.17125; Gulf, -$.00125 @ $.13125; Dallas, +$.00875 @ $.10625; Tampa, +$.01875 @ $.24625; and LA, +$.01375 @ $.18125    

·       Ethanol RINs were again firme: 2017’s, +1.50 @ 21-212; 2018’s, +2 @ 23-24; 2019’s, +1.625@ 25 ½ 27 ½                           &​nbsp;

·       The Jan RBOB/Jan ethanol spread remains volatile, bouncing out $.0628 to +$.2282/gal 

 LIVESTOCK/POULTRY         ​                        &​nbsp;    

• Choice boxed beef firmed 22-cents on Thursday to $212.47 but is still 20-cents lower compared to a week ago
• Dressed steer weight for week end Dec. 1: 899 lbs, dn 3 lbs v. last week, 901.25 for the 4-week avg. and 903 last year
• USDA mandatory pork carcass cutout increased 99-cents on Thu. to $71.86 and is $1.53 higher vs. last week  
• CME Lean Hog Index fell $0.18 on Thu. to $55.36.  December futures firmed $0.075 but are $0.56 below the index

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

   

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