HIGHLIGHTS
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MARKET TREND—Mixed: CH: down $.0025; SF: down $.0525; WH: up $.0050; KWH: up $.01
· MACRO. Fed boosts interest rates .25% as expected; cautions the inflation remains below its target--3 rate hikes in 2018. ASIA—Weaker: Nikkei, -0.28%; Shanghai, -0.29%; Hang Seng, -0.19%. EUROPE: Lower: DAX, -0.58%; FTSE, -0.27%; CAC, -0.41%. WALL STREET—Futures are firmer—DOW, +35; S&P, +3.00; NAS, +10.00. EXTERNALS: $ Index:-.029 @ 93.390; Gold: +$8.40 @ $1,254; Jan crude: -$0.04 @ $56.56/bl. Del’y: SBM, 123; SBO, 7; C, 137; ETOH, 0; HRW, 97; SRW, 20
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T-storm Weather: Some thunderstorms over Sat.-Mon. and multiple areas of thunderstorms next week produce generalized rain totals of 1.25"-2.50" in Argentina and 1.75"-3.50" in South Brazil and Paraguay over the next two weeks. Such amounts are fairly close to normal for the next two-week period, which will break topsoil dryness and improve subsoil dryness. Elsewhere in South America, heavy rains focus on northern growing areas of Brazil, including the key states of Goias and Mato Grosso
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CH, down $.0025 @ $3.4875; CK, down $.0025 @ $3.57. Post report the funds bought 3 K
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SF, down $.0525 @ $9.74; SH, down $.0525 @ $9.8525. Funds: bought 2 SB, 3 SBM, sold 2 SBO. Board Crush: $1.5, -2; LY, $.71
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WH, up $.0050 @ $4.17220; WK, up $.0075 @ $4.30. Funds were also buyers of 3 K of wheat
CORN/SORGHUM
· Export Sales to be released at 7:30 am CST. Trade expects 28-43 mbu for 17/18 corn
· Consultant: Argentina corn production estimate is steady this week at 42.0 MMT. The most advanced corn in Argentina is starting to pollinate & it is estimated that approximately 25% of the crop will pollinate during December
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T-storm Weather: Significant rain occurs over next two weeks in Argentina. It is plausible for more rain than we are forecasting to occur, but it will come down to specific atmospheric details of each event, which are unknown today
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Ethanol grind: Total of 1,089,000 barrels/day for week end Dec. 8—down 1.7% vs. prior week but up 4.7% v. 2016
SOYBEANS/WHEAT
· Export Sales report. Trade expects 51-73 for 17/18 soybeans; 100-300 for 17/18 soymeal; and 5-30 for 17/18 soyoil
· Consultant: Brazil soybean production est. for 17/18 is raised 1.0 MMT this week to 108.0 MMT (114.1 MMT last year)
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T-storm Weather: Converging air masses trigger thunderstorms each of the next 10 to 14 days in northern soybean growing areas of Brazil, producing generalized totals of 3.50” to 7.00” across a wide area
· Export Sales report. Trade expects 9-17 mbu for 17/18 all wheat
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T-storm Weather: Dry/mild weather continue through late next week for HRW wheat from Nebraska south. A colder period begins late next week/weekend, which should help rain/snow to form (but no major winter storm seen today)
ENERGY
· Mixed: CLF18, -$.04 @ $56.56; EBG +$0.05 @ $62.49; EBG-QCLF, +$0.07; RBF, +.0112;NGF, -.047; HOF, -.0046
· On Wednesday, cash ethanol markets were mixed: Chicago was quoted at $1.295, down $0.0025; Basis to Chicago—New York, +8 ½; Gulf, -¼; Dallas, +1 ¼; Tampa, +15 ½; and LA, +19
· On Wed., ethanol RINs were steady: 2016’s unch at 74 ½-75 ½; 2017’s unch at 75-76; & 2018’s unch at 75 ½-76
· The Jan RBOB/Jan ethanol spread fell sharply, losing $.0509 on Wednesday, to+$.35170/gallon
LIVESTOCK/POULTRY  
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Choice boxed beef values were $1.58 lower on Wednesday at $202.48, and are down $3.92 compared to a week ago
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Cash cattle trading remained quiet on Wednesday with asking prices in the south pegged at $119 to $120
· USDA mandatory pork carcass cutout value plummeted $4.46 on Wed. to $75.86, and is down $6.23 vs. last week
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CME Lean Hog Index fell $0.11 on Wed. to $64.86. December futures gained $0.20, but are $0.91 below the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather