HIGHLIGHTS

• MARKET TREND—trading resumes at  8.30 CST; steady to weaker

·       MACRO.  Asia is mixed; Europe is closed for the day and U.S. futures are a bit weaker; not much in the way of news this morning.  ASIA—Mixed: Nikkei, -0.20%; Shanghai,+0.78%; Hang Seng, closed.  EUROPE: Taking the day off: DAX,NA; FTSE, NA; CAC, NA. WALL STREET—Futures are weaker—DOW, 30; S&P, -0.50; NAS, -13.  EXTERNALS: $ Index: -.029 @ 92.895; Gold: +3.60 @ $1,281; Feb crude: -$0.09 @ $58.38. 

• T-storm Weather: Dry weather is forecast for Argentina through Fri.  Some thunderstorms return over the weekend and the next week when a couple systems pass, but heavy rain is not anticipated.  Areas of Southern Brazil stay fairly dry for much of this week until thunderstorms return from the weekend forward.  Northern areas of Brazil will be drier than normal through Thu.  An uptick in rainfall occurs over Dec. 29-Jan. 4 as cool fronts shift further to the norther, ultimately producing 1.75” to 3.50”  
• CH, closed up $.01 @$3.5225 on Friday; CK, +$.0125 @ $3.6075.  The funds were even in Friday trading             
• SF, up $.0150 Fri @ $9.5025; SH, up $.0175 @ $9.6075.  Funds: Bot 1 SB, 1 SBO, sold 2 SBM.  Board Crush: $0.94, -4; LY, $.73 
• WH, down $.02 @ $4.25 Fri; WK, down $.0125 @ $4.3775.  The funds closed out the week selling 2 K                    

 

CORN/SORGHUM

&m​iddot;       T-storm Weather: Despite recent rain across Argentina corn areas and forecasts for more this upcoming weekend, additional amounts may be needed as substantial deficits exist—especially in Buenos Aires & southern La Pampa

·       Friday’s USDA Cattle on Feed report indicated placements on feed during November were the largest since 2007 and above trade expectations.  The next update of U.S. corn feed/residual usage will be made on Jan. 12

·       Consultant: Several factors suggest Brazil’s 17/18 corn crop could face more obstacles than the Brazilian soybean crop

·       Export Inspections released at 10 am CST; Corn, 42.2 mbu needed; 23.4 last week.  Milo—5.5 needed; 7.7 last week

SOYBEANS/WHEAT

·       T-storm Weather: Soybeans areas across Brazil have been drying recently, but turn wetter over the next 1-2 weeks

·       Consultant:  Early soybean yield reports from Paraguay are poor, with some reported to be as low as 15-20 bpa.  Hot and dry weather over the last three weeks occurred during the critical pod filling period

·       Export Inspections released at 10 am CST; Soybeans, 34.4 mbu needed; 65.2 last week

·       Export Inspections released at 10 am CST; Wheat, 19.7 mbu needed; 21.5 last week

• NWS Seasonal Drought Outlook shows drought to persist in HRW wheat areas of southern Kansas, Oklahoma and Texas through March 31.  In contrast, some improvement in drought is forecast for SRW wheat in Arkansas

ENERGY

·       Lower: CLG18, -$.09 @ $58.39; EBG, -$0.09 @ $65.16; EBG-QCLG, $0.00; RBG, -.0009;NGG, +.093; HOG, -.0040

·       Friday saw cash ethanol markets again firmer: Chicago was quoted at $1.28725, up $0.01 ¾; Basis to Chicago—New York, +10 ¼; Gulf, +6; Dallas, +4 ½; Tampa, +20 ½; and LA, +25

·       On Thu., ethanol RINs were ¾ weaker: 016’s were 64 ¼ to 64 ¾; 2017’s at 65-65 ½ and 2018’s, 65-65 ½

·       The Jan RBOB/Jan ethanol spread moved up  $.0037 on Friday to +$.45630/gallon  

  LIVESTOCK/POULTRY       &nbs​p;                        ​;     

• Cattle on Feed: Dec. 1 on feed, 108.1% (106.7% avg est); Nov. place, 113.9% (105.8%); Nov. Market, 103.2% (103.2%)
• ATI Research: November placements on feed at 113.9% of 2016 were the largest for the month since 2007
• Hogs and Pigs report: All hogs & pigs, 102.4% (102.0% avg. est); breeding, 101.1% (100.7%); market, 102.5% (102.1%)
• ATI Research: USDA Quarterly Hogs and Pigs indicated pig crop & farrowing intentions on high side of expectations 

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