HIGHLIGHTS
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MARKET TREND—Mixed (6:00 am): CH, +$.0025; SF, +$.0525; WH, -$.0375; KWH, -$.0325.
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MACRO: WH says “very good call” with President Xi on Saturday, futures are higher; WSJ fades Trump’s comments. Asia: Limited trading-Nikkei, closed; Shanghai, closed; Hang Seng, +1.34%. EUROPE: Mixed—DAX, Closed; FTSE, -0.05%; CAC, +0.99%. WALL STREET: Futures are higher: DOW, +212; S&P, +20.75; NAS, +59.25. EXTERNALS: Feb crude: +$0.94 @ $46.27; Dec 19 Gold: +$2.80 @ $1,316; Mar $ Index, -.250 @ 95.715. Del’y: SBM, 264; SBO, 1,299; RR, 666; SB, 721
· T-storm Weather: Scattered thunderstorms continue to affect northern Brazil in some fashion over much of the next one to two weeks, ultimately diminishing the coverage and intensity of 14-day dryness. In southern Brazil, organized rains mostly hold off until Friday forward, but only near-normal totals are expected through Jan. 6. In Argentina, several heavy thunderstorm clusters produce 2.00"-4.00" through Wed.-Thu.; some flooding in central areas is possible following heavy rain on Sunday
· CH, up $.0025 @ $3.7575; CK, up $.0050 @ $3.8375. The funds were again estimated to be buyers of 1 K on Friday
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SF, up $.0525 @ $8.888; SH, up $.06 @ $9.0150. Funds bought 5 SB, 4 SBM & 1 SBO. Board Crush: $1.01, +1; LY: $1.00
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WH, dn $.0375 @ $5.0775; WK, dn $.0350 @ $5.1525. The funds bought 1 K to close out the week
CORN/SORGHUM
· Export Inspections released at 10 am CST; Corn, 49.5 mbu needed; 39.2 last week. Milo—2.4 needed; 1.3 last week
· Consultant: Brazil corn estimate lowered 1.0 MMT to 94.0. Full-season corn is pollinating so continued dryness would be detrimental for yield potential
· T-storm Weather: Across full-season corn in southern Brazil, below-normal rainfall dominates until better rain chances develop Friday forward; temperatures average above normal until rains arrive
· December 2019 corn futures on Friday closed at $3.97 ½; one year ago, December 2018 corn futures settled at $3.84
SOYBEANS/WHEAT
· Export Inspections released at 10 am CST; Soybeans, 36.6 mbu needed; 23.9 last week
· Consultant: Brazil soybean crop estimate lowered 2.0 MMT to 119.0. Soybeans in southern production areas are setting and filling pods so continued dryness would be detrimental for yield potential
· T-storm Weather: Across soybeans in southern Brazil, below-normal rainfall dominates until better rain chances develop Friday forward; temperatures average above normal until rains arrive
· Export Inspections released at 10 am CST; Wheat, 23.9 mbu needed; 20.0 last week
· T-storm Weather: Argentina stays very wet this week, slowing/stopping remaining wheat harvest in Buenos Aires
ENERGY
· Higher: CLG19, +$0.94 @ $46.27; EBH, +$1.18 @ $54.37; EBH-QCLHG, +$0.25; RBG, +.0356; NGG, -.208; HOG, +.0411
· Chicago ethanol gained $.00375 to $1.23125; basis values were firmer: New York, +$.00625 @ $.18375; Gulf, +$.00125 @ $.10375; Dallas, +$.00625 @ $.11875; Tampa, +$.00875 @ $.25875; and LA, +$.01625 @ $.25875
· RINs were weaker/unch: 2017’s, -$0.50 @ 17 ½- 18; 2018’s, unch @ 20 ½ -21; 2019’s, -0.50 @ 23 ½-24
· The Jan RBOB/Jan ethanol spread widened $.0142 on Friday to+$.0712/gal
LIVESTOCK/POULTRY
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Choice boxed beef declined 89-cents on Friday to $214.41, but is still 36-cents higher compared to last week
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February 2019 live cattle futures on Friday closed at $124.175, the highest settlement price for life of contract
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USDA mandatory pork carcass cutout firmed 10-cents on Friday to $68.94, but is still down 73-cents vs. a week ago
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CME Lean Hog Index eased $0.01 on Fri. to $53.11. February futures gained $0.075 and are $7.54 above the index
Source: Bloomberg, Dow Jones, AP, DTN. T-storm Weather
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