HIGHLIGHTS

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

·      MACRO.  Tax overhaul not final yet, some nervousness about the final details; market pausing after a good run.  ASIA—Lower: Nikkei, -0.37%; Shanghai, -0.2-%; Hang Seng,-1.01%.  EUROPE: Weaker: DAX, -0.61%; FTSE, +0.08%; CAC, -0.65%.  WALL STREET—Mostly weaker—DOW futures, +29; S&P, -1.00; NAS, -32.50.  EXTERNALS: $ Index: -.064@ 93.080; Gold: +$0.60 @ $1,275; Jan crude: -$0.31 @ $57.16/bl.  Del’y: SBM, 257; SBO, 329; C, 1,122; HRW, 0; SRW, 247; EU Wheat, 0

• T-storm Weather: Despite some thunderstorms, below to much-below normal rainfall affect Argentina, South Brazil, and Paraguay over the next two weeks.  Temps occasionally turn hot from Thu.-Fri. forward across the northwest two-thirds of Argentina and Paraguay, but not southeast Argentina and South Brazil.  Conversely, heavy rains continue in central and northern areas of Brazil, increasing or maintaining soil moisture across the Center-West, North and Northeast for planting or growth
• CH, up $.0050 @ $3.5425; CK, up $.0050 @ $3.6250.  The funds opened the week selling 5 K       
• SF, up $.0075 @ $9.9250; SH, up $.0025 @ $10.1050.  Funds: bot 7 SB, 7 SBM, sld 3 SBO.  Board Crush: $1.10, +$.08; LY, $.75 
• WH, down $.0150 @ $4.3375; WK, down $.0175 @ $4.4575.  The funds sold 2 K on Monday        

CORN/SORGHUM

·      T-storm Weather: Thunderstorms may develop in driest areas in approx. two weeks, which will be needed as normal rain until then ranges from ~2.25" in Argentina to ~3.25" in S. Brazil.  But will take many days to determine the setup

·      Consultant: Brazil corn production estimate for 2017/18 is unchanged this week at 88.0 MMT vs. 98.5 MMT last year and 67.0 MMT two years ago

·      ATI Research: Updated ending stocks estimate for 17/18 U.S. corn is 2.491 bbu vs. November USDA est. of 2.487

·      ATI Research: Updated ending stocks estimate for 17/18 U.S. sorghum is 25 mbu vs. November USDA est. of 19 mbu

SOYBEANS/WHEAT

·      Consultant: The earliest planted soybeans in Brazil have started to flower and a few of these fields might be harvested by New Year’s Day.  The harvest won’t gain speed until probably about the middle of January

·      ATI Research: Updated ending stocks estimate for 17/18 U.S. soybeans 0.537 bbu vs. November USDA est. of 0.425

• T-storm Weather: Extensive topsoil and subsoil moisture dryness exist for soybeans in Argentina & far-southern Brazil
• ATI Research: U.S. HRS wheat balance sheet; 17/18 carryout projected at 176 mbu compared to 235 last year

·      T-storm Weather: Heavy rain (1.00”-4.00”) stopped wheat harvest across New South Wales/South Australia/Victoria Thu.-Fri.  A dry period is now forecast to dominate through mid-month, improving harvest conditions with time

ENERGY

·      Weaker: CLF18, -$0.31 @ $57.16; EBG -$0.15 @ $63.30; EBG-QCLF, +$0.15; RBF,+.0137; NGF, -.032; HOF, -.0036

·      On Monday, cash ethanol markets were mixed: Chicago was quoted at $1.3525, up $0.0225; Basis to Chicago—New York, +9 ¾; Gulf, +7; Dallas, +4 ¼; Tampa, +19 ¼; and LA, +19 ¼

·      On Monday, ethanol RINs fell: 2016’s down 1 ½ at 85 ½-86 ½; 2017’s eased 1 ½ to 86-87; & 2018’s off 1 ½ to 86-87

·      The Dec RBOB/Dec ethanol spread narrowed by $.0464 on Monday, falling to+$.3452/gallon 

  LIVESTOCK/POULTRY                 &n​bsp;                    

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• Choice boxed beef values increased $2.20 on Monday to $208.19, but are still down $1.38 compared to a week ago
• 5-Area Weekly Weighted Average Steer price up $1.61 v. last week at $120.58/cwt, and is $6.55 higher v. last year

·      USDA mandatory pork carcass cutout value firmed 92-cents on Monday to $83.51, and is $2.17 higher vs. last week 

• CME Lean Hog Index gained $0.66 on Mon. to $63.92.  December futures fell $0.325 but are $1.03 above the index

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