HIGHLIGHTS

• MARKET TREND—Mixed: CH: up $.0050; SF: up $.0250; WH: down $.0075; KWH: down $.0150

·       MACRO.  Stocks took a breather Tuesday after the recent strong performance. Senate approves tax legislation, now back to the House for a final vote.  ASIA—Mostly lower:Nikkei, +0.10%; Shanghai, -0.27%; Hang Seng, -0.07%.  EUROPE: Lower: DAX, -0.26%; FTSE, -0.16%; CAC, -0.33%.  WALL STREET—Futures are higher—DOW futures, +84; S&P, +8.25; NAS, +23.00.  EXTERNALS: $ Index: -.012 @ 93.015; Gold: +$3.30 @ $1,264; Feb crude: +$0.18 @ $57.74. 

• T-storm Weather: Generalized rain of 1.00"-2.00" affects central & northern areas of Argentina through Sat., but leaves southern soybeans & sunflowers considerably drier.  Five to seven days of drying follow before a round of scattered thunderstorms unfolds within Dec. 29 - Jan. 2.  Further north, widespread coverage of above-normal rain occurs over the next 10 days across southern Brazil & Paraguay, but northern areas of Brazil will likely be considerably drier than recently over the next week
• CH, up $.0050 @ $3.48; CK, up $.0050 @ $3.5650.  Fund buying was placed at 2 KTuesday           
• SF, up $.0250 @ $9.5850; SH, up $.0250 @ $9.6925.  Funds: sold 3 SB, 4 SBM, bot 2 SBO.  Board Crush: $1.03, +1; LY, $.71 
• WH, down $.0075 @ $4.1875; WK, down $.0150 @ $4.3125.  The funds were said to be even in yesterday’s trade                  

CORN/SORGHUM

• March 2018 corn futures on Tuesday equaled a contract low of $3.46 ½ before closing at $3.47 ½.  Since recording a calendar year high of $4.26 on July 11, March futures have declined $0.78 ½ (18.4%)

·       Consultant: Argentina corn production estimate for 2017/18 is unchanged this week at 42.0 MMT vs. 41.0 MMT last year.  This year’s corn planting pace continues to be the slowest on record and may not finish until later in January

• T-storm Weather: Heavy rainfall since Sat. aided ~50% of first-crop corn in Argentina but considerably more is needed

·       EIA report at 9:30 am CST.  Ethanol production for the week ending Dec. 8 was 1.089 million barrels per day

SOYBEANS/WHEAT

·       Consultant: Argentina soybean production est. is steady at 55.0 MMT.  Planting has been slowed by dry conditions.  If the majority of remaining beans are not planted within next two weeks, yield could start to suffer due to late planting

·       T-storm Weather: Despite drying across northern Brazil beans this week, a stormy period likely follows Dec. 26-Jan. 1

• ATI Research: Bias on near-term U.S. all wheat exports is 15-20 mbu per week
• T-storm Weather: Key HRW wheat areas of the U.S. Plains likely stay dry over the next week or longer

ENERGY

·       Firmer: CLG18, +$.18 @ $57.74; EBG, -$0.04 @ $63.76; EBG-QCLG, -$0.34; RBG,+.0040; NGG, +.038; HOG, +.0011

·       EIA Report Estimates (API): crude oil, -3.2 (-5.2); Gasoline, +1.1 (+2.0); Distillates, -0.5 (-2.9).  Estimates for ethanol prod. avg. 1.089 mil barrels/day (range 1.075-1.098).  Avg. est. for ethanol stocks is 22.4 mil barrels (range 22.0-22.7)

·       On Tuesday, cash ethanol markets were mostly lower: Chicago was quoted at $1.23, down $0.005; Basis to Chicago—New York, +11 ½; Gulf, +7 ½; Dallas, +7 ½; Tampa, +23 ½; and LA, +23 ½

·       On Tue., ethanol RINs eased: 2016’s down 1 ¼ to 69 ¼-71 ¼; 2017’s off 1 at 70-72; and 2018’s fell 1 to 70 ½-72 ½

·       The Jan RBOB/Jan ethanol spread added another $.0251 Tuesday, moving out to+$.42860/gallon  

  LIVESTOCK/POULTRY                           &nb​sp;         

• Choice boxed beef values fell $1.39 on Tuesday to $201.76, and are down $2.30 compared to a week ago
• Pre-report estimates for Friday’s Cattle on Feed: Dec. 1 On-Feed 106.7%; Nov. Placed 105.8%; Nov. Marketed 103.2%

·       USDA mandatory pork carcass cutout value firmed 78-cents on Tue. to $75.73, but is $4.59 lower vs. last week 

• CME Lean Hog Index declined $0.47 on Tue. to $62.71.  February futures eased $0.50, but are $4.19 above the index

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