HIGHLIGHTS

• MARKET TREND—Steady  (prices below are Monday’s closes)
• MACRO:  “The only problem our economy has is the Fed”—WH tweet.  Asia: Mixed--Nikkei, +0.89% (fell 5% Tuesday); Shanghai,-0.26%; Hang Seng, closed.  EUROPE: Taking a holidau—DAX, NA; FTSE,NA; CAC, NA.  WALL STREET: Futures are again, positive:  DOW, +115;S&P, +15.25; NAS, +24.75.  EXTERNALS: Feb crude: +$0.60 @ $43.13;Dec 19 Gold: +$0.40 @ $1,306; Mar $ Index, +.228 @ 96.235

·       T-storm Weather: Scattered thunderstorms affect the northern two-thirds of Brazil's corn and soybean growing belt on most of the next 10 days, but miss much of the southern belt to leave ~15% and ~20% of each crop drier than ideal (as well as ~50% of soybeans in Paraguay), though temperatures will be cool and some thunderstorms follow.  Conversely, several rounds of organized thunderstorms affect Argentina from Thursday forward

·       CH, dn $.00750 @ $3.7775 CK, dn $.0050 @ $3.8575.  Funds were net sellers of 1 K ahead of the holiday             

• SF, dn $.0050 @ $8.8425; SH, dn $.0075 @ $8.97.  Funds bot 1 SB, 2 SBM & sold 2 SBO. Board Crush: $0.97, +3; LY: $0.98 
• WH, up $.02 @ $5.16; WK, up $.02 @ $5.2325.  Funds:  bot 1 K on Monday                      

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CORN/SORGHUM

·       Consultant: Brazil corn production est. is lowered 1.0 MMT to 95.0 MMT.  Dryness is impacting the full-season corn crop; corn in Minas Gerais—largest full-season producer—is pollinating so continued dryness would be deterimental

·       T-storm Weather: A stormier period most likely unfolds for full-season corn areas of southern Brazil in approximately 10 days as a cool front lifts northward from Argentina over Jan. 2-6

• ATI Research: Bias on near-term U.S. corn exports is 35-45 mbu per week

·       Export Inspections released at 10 am CST; Corn, 49.2 mbu needed; 34.8 last week.  Milo—2.2 needed; 0.9 last week

SOYBEANS/WHEAT

·       Consultant: Brazil soybean production est. is lowered 1.0 MMT to 121.0 MMT.  Early planted or early maturing beans across south-central areas that were setting and filling pods have been adversely impacted by hot and dry weather

·       T-storm Weather: A stormier period most likely unfolds in for soybeans in southern areas of Brazil in approximately 10 days as a cool front lifts northward from Argentina over Jan. 2-6

·       Export Inspections released at 10 am CST; Soybeans, 36.3 mbu needed; 35.8 last week

·       Export Inspections released at 10 am CST; Wheat, 23.7 mbu needed; 25.1 last week

• ATI Research: Bias on near-term U.S. all wheat exports is 15-20 mbu per week

ENERGY

·       Firmer:  CLG19, +$0.60 @ $43.13; EBG, +$0.61 @ $51.08; EBG-QCLG, +$0.010; RBG, +.0134; NGG, -.088; HOG, +.0039

·       From Friday: Chicago ethanol gained $.00875 to $1.21750; basis values were mixed: New York, +$.01125 @ $.17250; Gulf, +$.00125 @ $.09250; Dallas, -$.00375 @ $.10250; Tampa, -$.01375 @ $.23750; and LA, +$.01125 @ $.23250    

·       Repeated from Friday: RINs were mixed: 2017’s, unch @ 17-19; 2018’s, -0.50 @ 21 ½ -22; 2019’s, +2.50 @ 24-26                            

·       The Jan RBOB/Jan ethanol spread plunged $.0714 on Monday to a narrow +$.0088/gal

 LIVESTOCK/POULTRY            ​;                    ​;      

• December live cattle futures on Monday traded to a contract high of $121.25
• ATI Research: Cattle supplies should continue to increase the next 18 months due to higher calf crops in 2017 & 2018
• ATI Research: USDA Quarterly Hogs and Pigs report indicates gilt retention during Sep-Nov was down 3% vs. last year
• February lean hog futures on Monday closed at $60.30—the lowest settlement price for the contract since Nov.9

Source: Bloomberg, Dow Jones, AP, DTN. T-storm Weather