HIGHLIGHTS

• MARKET TREND—Mixed: CH, +$.0075; SH, -$.0325; WH, -$.01;  KWH, steady

·       MACRO.  A strong global economic outlook is keeping investor confidence in the New Year undaunted.  ASIA—Higher:  Nikkei, +0.57%; Shanghai, +0.16%; Hang Seng, +0.36%. EUROPE: Higher: DAX,+0.15%; FTSE, +0.35%; CAC, +0.52%.  WALL STREET—Futures are again positive—DOW, +35; S&P, +1.00; NAS, +5.25.  EXTERNALS: $ Index: +.220 @ 92.93;Feb Gold: -$5.40 @ $1,315; Feb crude: +$0.18 @ $61.9180.  Deliveries:  SBM, 170; SBO, 214; SB, 21; RR, 00; ETOH, 0 

• T-storm Weather: In Argentina, dry and hot weather occur through midweek.  A few thunderstorms dot southern areas Thu.-Fri. as heat de-stabilizes the atmosphere, but most rain occurs Sat.-Sun. when a system passes and produces generalized rainfall of 1.00" to 2.00".  In Brazil, a drier period dominates northern growing areas over much of the next two weeks as upper-level high pressure lingers in some fashion.  Widespread rains focus to the south of the upper-level high, keeping southern Brazil wet
• CH, up $.0075 @ $3.48; CK, up $.0075 @ $3.5625.  Fund selling was estimated at 6 Kon Monday                 
• SH, dn $.0325 @ $9.6350; SK, dn $.0325 @ $9.7425.  Funds: Sold 4 K SB, 1 K SBM, 3 K SBO.  Board Crush: $1.09, 0; LY, $.76
• WH, down $.01 @ $4.2675; WK, down $.0075 @ $4.3975.  The funds sold 3 K to open the week                         

CORN/SORGHUM​

·       March 2018 corn futures on Monday closed at $3.47 ¼--the lowest settlement price for the contract since Dec. 18

·       T-storm Weather: In Argentina, near-normal rainfall is probable across corn producing areas over the next two weeks, which will at least improve topsoil moisture through mid-month

·       ATI Research: U.S. corn ending stocks for the 17/18 crop year are pegged at 2.437 bbu vs. USDA at 2.437 bbu

• Consultant: Brazilian corn production estimate is steady at 88.0 MMT.  Concern remains about the safrinha (double crop) corn as the delay in soybean planting earlier will pushsafrinha seeding past the ideal planting window 

SOYBEANS/WHEAT

·       T-storm Weather: Rains affected most of Brazil’s soybean areas in recent days and weeks, only appearing to leave crops in/near Bahia in particular need of rain going forward.  Bahia accounts for ~5% of Brazil’s soybean output

·       Consultant: Brazil soybean crop est. is increased 1.0 MMT to 110.0 as the weather continues to be generally favorable

·       ATI Research: U.S. soybean ending stocks for the 17/18 crop year are pegged at 616 mbu vs. USDA at 445 mbu

·       ATI Research: U.S. HRS wheat ending stocks for the 17/18 crop year are pegged at 176 mbu vs. USDA at 167 mbu

• T-storm Weather: A mix of rain/snow moves across U.S. Plains Wed.-Thu., bringing 1^stsignificant precip in more than 90 days to HRW wheat in CO/KS & points north.  There is a low chance for a blizzard in the eastern Corn Belt Fri.-Sat.

ENERGY

·       Firmer: CLG18, +$.18 @ $61.91; EBH, +$0.04 @ $67.82; EBH-QCLH, -$0.12; RBG,+.0089; NGG, +.063; ​;HOG, +.0036

·       On Monday, cash ethanol markets were lower: Chicago was quoted at $1.24125, down $0.015; Basis to Chicago—New York, +14 ¾; Gulf, +10 ¼; Dallas, +13 ¾; Tampa, +28 ¾; and LA, +33 ¼

·       On Monday, ethanol RINs firmed: 2016’s up 2 ¼ to 64-68; 2017’s added 2 ¼ to 65-69; & 2018’s gained 2 ¼ to 65-69

·       The Feb RBOB/Feb ethanol spread eased $.0160 on Monday, closing at+$.48680/gallon  

  LIVESTOCK/POULTRY                     &​nbsp;               

• Choice boxed beef values firmed 69-cents on Monday to $210.20, and are $5.06 higher compared to last week
• Cash cattle trading was surprisingly active on Monday, with prices pegged at $120—down ~$1.50 vs. last week

·       USDA mandatory pork carcass cutout value fell $1.10 on Monday to $77.21, and is down 24-cents vs. a week ago

• Current nearby board hog crush value is $49.91/cwt vs. last week’s $49.90, last month’s $47.64 & last year’s $42.70

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