HIGHLIGHTS

• MARKET TREND—Mostly firm: CH: up $.0050; SF: dn $.0075; WH: up $.0150; KWH: up $.03.  USDA WASDE report 11:00 am CST

·       MACRO.  Markets marking time ahead of Fed and ECB meetings.  ASIA—Weaker:Nikkei, -0.32%; Shanghai, -1.24%; Hang Seng, -0.59%.  EUROPE: Firmer: DAX, +0.03%; FTSE, +0.27%; CAC, +0.21%.  WALL STREET—Futures are a little firmer—DOW, +18; S&P, +0.25; NAS, -0.75.  EXTERNALS: $ Index: -.013 @ 93.830; Gold: -$1.10 @ $1,243; Jan crude: +$0.32 @ $58.31/bl.  Del’y: SBM, 169; SBO, 72; C, 66; ETOH, 0; HRW, 0; SRW, 15

• T-storm Weather: A stormy period begins over the next week in Argentina, southern Brazil, and Paraguay–initially from a few thunderstorms in southwest Argentina today and/or Wed., followed by higher coverage and amounts over Sat.-Mon., then one or two more systems next week.  The end result is that near-normal rainfall is expected over the next two weeks.  Elsewhere, northern growing areas of Brazil remain wet as air masses continually converge and trigger thunderstorms
• CH, up $.0075 @ $3.4975; CK, up $.0075 @ $3.58.  The funds began the week selling 7 K         
• SF, down $.0075 @ $9.8175; SH, down $.0050 @ $9.9350.  Funds: sold 5 SB, 6 SBM, 3 SBO.  Board Crush: $1.07, -$.03; LY, $.71 
• WH, up $.0150 @ $4.1; WK, up $.0150 @ $4.2875.  More selling, 5 K on Monday             

CORN/SORGHUM

• USDA WASDE report at 11:00 am CST: Avg. trade est U.S. corn carryout--17/18, 2.478 bbu (range 2.394-2.517) & 2.487 in Nov.

·       WASDE: Avg. trade est Brazil corn--17/18, 93.3 MMT v. 95.0 in Nov.; Argentina corn--17/18, 41.8 MMT vs. 42.0 in Nov

·       T-storm Weather: Near-normal rain across Argentina corn producing areas over the next two weeks will improve topsoil moisture and stabilize or improve subsoil moisture

·       Consultant: Full-season corn in Brazil is 95% planted v. 5-year avg. of 86%.  Total Brazil crop est. is steady at 88.0 MMT

SOYBEANS/WHEAT

• USDA WASDE report: Avg. trade est U.S. soybean carryout--17/18, 0.438 bbu (range 0.425-0.486) & 0.425 in Nov.

·       WASDE: Avg. trade est Brazil soybean--17/18, 108.2 MMT v. 108.0 in Nov.; Argentina--17/18, 56.5 MMT v. 57.0 in Nov

·       T-storm Weather: In northern Brazil, rainfall of 3.00”-6.00 over the next 10 days affects crops across a wide area, aiding growth/development across Bahia, Goias, Mato Grosso & Minas Gerais, including ~47% of soybean production

·       USDA WASDE Dec. 12: Avg. trade guess U.S. wheat carryout--17/18, 0.938 bbu (range 0.925-0.960) & 0.935 Nov.

·       T-storm Weather: Dry weather continues over the next 10 to 14 days in HRW wheat areas of the U.S. Plains, extending the unusually dry period to 75 to 80 days by the end of next week

ENERGY

·       Firmer: CLF18, +$.32 @ $58.31; EBG +$0.90 @ $65.59; EBG-QCLF, +$0.59; RBF,+.0249; NGF, +.009; HOF, +.0242

·       On Monday, cash ethanol markets were slightly weaker: Chicago was quoted at $1.32375, down $0.00975; Basis to Chicago—New York, +7 ¾; Gulf, +6 ½; Dallas, +1; Tampa, +13 ½; and LA, +16 ¾

·       On Mon., ethanol RINs firmed: 2016’s up ¼ to 73 ½-75 ½; 2017’s added ¼ at 74-76; and 2018’s gained ½ to 74 ¼-76 ¼

·       The Jan RBOB/Jan ethanol spread widened $.023/gallon on Monday. closing at+$.41060/gallon  

  LIVESTOCK/POULTRY                     &nb​sp;               

• Choice boxed beef values eased 6-cents on Monday to $205.53, and are $2.66 lower vs. last week
• 5-Area Weekly Weighted Average Steer price down $3.12 v. last week at $117.46/cwt, but is $7.94 higher v. last year

·       USDA mandatory pork carcass cutout value fell $1.96 on Monday to $80.85, and is $2.66 lower vs. a week ago 

• Current nearby board hog crush value is $47.64/cwt vs. last week’s $48.40, last month’s $49.23 & last year’s $41.13

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