HIGHLIGHTS

• MARKET TREND—Mostly firmer: CH, +$.0075; SH, +$.0025; WH, +$.0250;  KWH, +$.0425

·       MACRO.  Europe and Asia react positively to yesterday’s U.S. tech-led market gains; Europe economic outlook best in a decade.  ASIA—Mostly higher:  Nikkei, -0.08%; Shanghai, +0.65%; Hang Seng, +0.15%.  EUROPE: Higher: DAX,+0.47%; FTSE, +0.03; CAC, +0.39%.  WALL STREET—Market enthusiasm continues—DOW futures, +50; S&P, +5.00;NAS, +14.50.  EXTERNALS: $ Index: +.237 @ 91.810; Gold: $0 @ $1,314; Feb crude:+$0.19 @ $60.66.  Deliveries:  SBM, 261; SBO, 0 SB, 2; RR, 0 

• T-storm Weather: In Argentina, other than a few thunderstorms Thu.-Fri. in southern areas, mainly dry weather dominates this week & next, accompanied by heat next week.  In Brazil, northeastern corn & soybean areas were quite dry over the last two weeks, but southern areas were wet.  Thunderstorms focus on the dry area over the next several days, then in central & northern areas from this weekend forward.  Rain chances are low through 10 days in southern areas, but rain is not needed in this area
• CH, up $.0075 @ $3.54; CK, up $.01 @ $3.6225.  The funds began the New Year buying 6 K               
• SH, up $.0025 @ $9.65; SK, up $.0050 @ $9.7625.  Funds: Bot 6 SB, 2 SBM, 4 SBO.  Board Crush: $1.04, +4; LY, $.75 
• WH, up $.02i @ $4.3550; WK, up $.02 @ $4.4825.  Tuesday’s fund buying in wheat also totaled 6 K                     

CORN/SORGHUM

​ ·       T-storm Weather: In Argentina, some changes in the current dry weather pattern potentially develop in 10-14 days when a wave or two of energy trigger some thunderstorms, which will be a key forecast issue for some areas 

·       ATI Research: U.S. corn ending stocks for the 17/18 crop year are pegged at 2.452 bbu vs. USDA at 2.437 bbu

·       Consultant: Brazilian corn production estimate is steady at 88.0 MMT.  Most of the full-season corn in Rio Grande do Sul is pollinating and starting to fill grain with some of the most advance corn approaching maturity

·       USDA Grain Crushings report put corn consumed for fuel alcohol production in November at 476 mbu—5.2% v. 2016

SOYBEANS/WHEAT

·       T-storm Weather: Thunderstorms focus on driest northern soybean growing areas of Brazil through the end of the week.  In total, at least 90% of Brazil’s soybeans will receive near- and above-normal rainfall into mid-month

·       Consultant: Brazil soybean est. increased 1.0 MMT to 109.0 as weather in recent weeks has generally been beneficial

·       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. SRW wheat ending stocks for the 17/18 crop year are pegged at 212 mbu vs. USDA at 230 mbu

·       T-storm Weather: Upcoming temperature fluctuations start Sunday, which will lead to some rain and snow in the U.S. Delta & eastern Corn belt, but unlikely for wheat in central & southern Plains where agricultural drought continues

ENERGY

·       Firmer: CLG18, +$.19 @ $60.66; EBH, +$0.21 @ $66.78; EBH-QCLH, +$0.04; RBG,+.0076; NGG, -.043; HOG, +.0110

·       On Tuesday, cash ethanol markets were higher compared to Friday: Chicago was quoted at $1.315, up $0.01625; Basis to Chicago—New York, +13 ¼; Gulf, +8 ½; Dallas, +11 ½; Tampa, +26; and LA, +27

·       On Tuesday, ethanol RINs firmed: 2016’s added 1 to 68-71; 2017’s up 1 ¼ to 69-72; and 2018’s gained 1 ¼ to 69-72

·       The Feb RBOB/Jan ethanol spread shed $.0511 Tuesday and closed at+$.42810/gallon  

  LIVESTOCK/POULTRY                             ​        

• Choice boxed beef increased $2.24 on Tuesday to $205.14, and are $2.54 higher compared to a last week 
• 5-Area Weekly Weighted Average Steer price up $2.87 v. last week at $122.84/cwt, and is $5.40 higher v. last year

·       USDA mandatory pork carcass cutout value fell 15-cents on Tue. to $77.45, but is still up $1.79 vs. a week ago 

• Current nearby board hog crush value is $49.90/cwt vs. last week’s $49.34, last month’s $48.40 & last year’s $42.74

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