HIGHLIGHTS
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MARKET TREND—Mixed: CH: up $.0050; SF: down $.0050; WH: steady; KWH: up $.0050
· MACRO. Tax signature day approaching with greater certainty, most global markets higher on expected economic growth benefits. ASIA—Mostly higher: Nikkei, -0.15%; Shanghai, +0.88%; Hang Seng, +0.70%. EUROPE: Mostly weaker: DAX, -0.10%; FTSE,+0.16%; CAC, -0.17%. WALL STREET—No end to the optimism?—DOW futures, +28; S&P, +1.25; NAS, +2.75. EXTERNALS: $ Index: -.109 @ 93.130; Gold: +$1.90 @ $1,264 Jan crude: +$0.34 @ $57.50.
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T-storm Weather: In Argentina, scattered thunderstorms occur through Sat. producing 1.00"-2.00" in central & northern areas. Southern areas also receive some rain, but amounts are more questionable due to a lack of humidity in southwestern soybean & sunflower areas. Several cool fronts trigger thunderstorms across Southern Brazil and Paraguay & produce near-normal rainfall of 2.00" to 4.00" over the next two weeks. Northern areas of Brazil will be considerably drier than normal over the next 10 days
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CH, up $.0025 @ $3.472; CK, up $.0075 @ $3.56. The funds were estimated to be even in Monday’s trade
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SF, down $.0050 @ $9.61; SH, down $.0075 @ $9.7175. Funds: sold 5 SB, 3 SBM, 1 SBO. Board Crush: $1.02, -1; LY, $.68
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WH, steady @ $4.2050; WK, down $.0025 @ $4.3325. The funds bought 3 K to begin the week
CORN/SORGHUM
· T-storm Weather: A drier period for Argentina corn follows exit of rain Sat.-Sun., especially southward. As such, rain needs to be wetter than expected this week, else subsoil dryness will linger and topsoil dryness will begin to increase
· U.S. corn exports for the 17/18 crop year through Dec. 14 were 362 mbu, which is 40% below last year’s 607 mbu
· Consultant: Due to delay in getting early soybeans planted, it is estimated 30-40% of potential safrinha (double crop) corn acreage in Brazil will be planted later than desired. As a result, all intended safrinha acreage may not get planted
· Export Inspections released at 10 am CST; Corn, 41.8 mbu needed; 25.9 last week. Milo—5.6 needed; 5.9 last week
SOYBEANS/WHEAT
· January 2018 soybean futures on Monday traded to $9.57 ¼, the lowest price for the contract since Sep. 13
· T-storm Weather: Northern areas of Brazil (~50% of soybean prod.) will be considerably drier than normal over the next week. The lack of rain is not particularly concerning as most of the region was seasonable to wet last 1-2 weeks
· Consultant: Brazil soybean est. steady at 108.0 MMT. Harvest in Mato Grosso may be 2-4 weeks later than last year
· U.S. wheat exports for the 17/18 crop year through Dec. 14 were 503 mbu, which is 6% below last year’s 536 mbu
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T-storm Weather: HRW wheat in the U.S. Plains turn sharply colder from Thu.-Fri. forward. Temperatures will be cold enough for winterkill from Nebraska north, but light snows that precede coldness next week limit the overall threat
ENERGY
· Firmer: CLF18, +$.34 @ $57.50; EBG +$0.29 @ $63.70; EBG-QCLF, -$0.05; RBF,+.0087; NGF, -.019; HOF, +.0118
· On Monday, cash ethanol markets were mixed: Chicago was quoted at $1.235, up $0.01375; Basis to Chicago—New York, +11 ¼; Gulf, +6 ½; Dallas, +7 ½; Tampa, +23 ½; and LA, +24
· On Mon., ethanol RINs fell: 2016’s off ¼ to 70 ¾-72 ¼; 2017’s down ¼ to 71-73; and 2018’s eased ¼ to 71 ½-73 ½
· The Jan RBOB/Jan ethanol spread picked up $.0107 to begin the week, and closed at+$.4035/gallon
LIVESTOCK/POULTRY  
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Choice boxed beef gained $1.28 on Monday to $203.15, but are still $2.38 lower vs. the previous week
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5-Area Weekly Weighted Average Steer price up $2.25 v. last week at $119.71/cwt, and is $8.32 higher v. last year
· USDA mandatory pork carcass cutout value fell $1.74 on Monday to $74.95, and is $5.90 lower compared to last week
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CME Lean Hog Index eased $0.93 on Mon. to $63.18. February futures fell $1.125, but are $4.22 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather