HIGHLIGHTS

• MARKET TREND—Mixed: CH: up $.0025; SF: down $.0125; WH: up $.01; KWH: up $.0050

·       MACRO.  International markets have a “muted” response to U.S. Congressional approval of the tax code overhaul.  ASIA—Mostly firmer: Nikkei, -0.11%; Shanghai,+0.40%; Hang Seng, +0.45%.  EUROPE: Uncertain: DAX,+0.01%; FTSE, +0.27%; CAC, -0.04%.  WALL STREET—Futures are mostly higher—DOW futures, +20; S&P, +4.25; NAS,-0.25.  EXTERNALS: $ Index: +.054 @ 92.945; Gold: -0.50 @ $1,267; Feb crude: -$0.10 @ $57.99. 

• T-storm Weather: Scattered thunderstorms dot Argentina through Fri.-Sat., followed by 5-7 days of dry weather.  Some rain returns next weekend and the following week, but more will probably be needed since ~2.25" is normal of the next two weeks and generalized rain of 1.00"-2.00" is most likely central and south; slightly wetter north.   Southern Brazil turns considerably wetter over the next two weeks as occasional cool fronts trigger thunderstorms, but amounts are questionable to the north
• CH, up $.0025 @ $3.4950; CK, up $.0075 @ $3.5825.  The funds were estimated to have bought 5 K at mid-week           
• SF, down $.0125 @ $9.5275; SH, down $.0150 @ $9.63.  Funds: sold 2 SB, 3 SBO, bot 1 SBM.  Board Crush: $1.02, -1; LY, $.71 
• WH, up $.01 @ $4.2450; WK, up $.0075 @ $4.37.  Fund buying totaled 3 K yesterday                   

CORN/SORGHUM

·   &​nbsp;   Export Sales to be released at 7:30 am CST.  Trade expects 28-47 mbu for 17/18 corn

·       Consultant: Planting of safrinha (double crop) corn in Brazil is likely to be later than desired in early 2018 due to delayed soybean planting.  In addition, low domestic corn prices may discourage planting of safrinha acreage

• T-storm Weather: Heavy rain last weekend aided ~50% of first-crop corn in Argentina, but considerably more needed as 30-day dryness barely diminished.  Amounts next 2 weeks forecast to be normal north, but less-so central & south
• Ethanol grind: Total of 1,077,000 barrels/day for week end Dec. 15—down 1.1% vs. prior week but up 4.0% v. 2016

SOYBEANS/WHEAT

·       Export Sales report.  Trade expects 37-79 for 17/18 soybeans; 100-350 for 17/18 soymeal; and 8-22 for 17/18 soyoil

·       Consultant: Basically, Brazil soybean crop completely planted; most advanced beans are flowering, starting to fill pods

• T-storm Weather: Brazil has not been nearly as dry as Argentina last 30 days.  However, 53% of soybeans were drier than normal over last 14 days from a lack of rain in southern areas, leaving 42% drier than normal the last 30 days

·       Export Sales report.  Trade expects 9-22 mbu for 17/18 all wheat

·       T-storm Weather: In the U.S, a low chance for a winter storm exists within Dec. 26-29across a large area (including driest HRW wheat areas of the central and southern Plains), but the exact setup will take many days to resolve

ENERGY

·       Lower: CLG18, -$.10 @ $57.99; EBG, -$0.20 @ $64.36; EBG-QCLG, -$0.11; RBG,-.0017; NGG, -.011; ​HOG, -.0005

·       On Wednesday, cash ethanol markets were higher: Chicago was quoted at $1.26, up $0.03; Basis to Chicago—New York, +9 ½; Gulf, +6; Dallas, +5; Tampa, +21; and LA, +21 ½

·       On Wed., ethanol RINs fell: 2016’s off 2 ¾ to 65 ¾-69 ¼; 2017’s eased 2 ¾ to 66 ½-70; & 2018’s down 3 ¼ at 66 ½-70

·       The Jan RBOB/Jan ethanol spread gained $.0207 yesterday, widening to+$.45030/gallon  

  LIVESTOCK/POULTRY                               ​      

• Choice boxed beef values fell $3.67 Wed. to $198.09—largest decline since June 28—and are down $4.39 v. last week
• Trade estimates for Dec. 22 USDA Cattle on Feed: Dec. 1 On-Feed 106.7%; Nov. Placed 105.8%; Nov. Marketed 103.2%

·       USDA mandatory pork carcass cutout value eased 15-cents on Wed. to $75.58, and is down 38-cents vs. a week ago  

• Trade estimates Dec. 22 USDA Quarterly Hogs & Pigs: All Hogs & Pigs, 102.0%; Breeding, 100.7%, Marketing, 102.1%

Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather