HIGHLIGHTS

• MARKET TREND—Weaker: CH: down $.0175; SF: down $.0725; WH: down $.0475; KWH: down $.04.

·       MACRO.  Bitcoin begins trading on the CBOE; market looking ahead to the Federal Reserve regarding future interest rate hikes.  ASIA—Higher: Nikkei, +0.56%; Shanghai,+0.98%; Hang Seng, +1.14%.  EUROPE: Mostly higher: DAX, +0.11%; FTSE, +0.63%; CAC, -0.01%.  WALL STREET—Futures are firm—DOW, +52; S&P, +2.50; NAS, +10.75. EXTERNALS: $ Index: -.099 @ 93.775; Gold: +$3.90 @ $1,249; Jan crude: -$0.16 @ $57.20/bl.  Del’y: SBM, 192; SBO, 121; C, 39; ETOH, 0; HRW, 0; SRW, 285

• T-storm Weather: Except for some thunderstorms in southwest Argentina Tue.-Wed., dry and hot weather affect Argentina, southern Brazil and Paraguay over the next 5-7 days.  Scattered thunderstorms dot the region within Sat.-Mon. (Dec. 16-18) and more-so in 10 to 14 days, most likely resulting in near-normal rainfall over the next two weeks.  Otherwise, widespread rains continue in northern corn and soybean areas of Brazil over the next week
• CH, down $.0150 @ $3.5125; CK, down $.0150 @ $3.5950.  Friday found the funds buying 3 K        
• SF, down $.0725 @ $9.8250; SH, down $0675 @ $9.9475.  Funds: sold 2 SB, 3 SBM, bot 3 SBO.  Board Crush: $1.10, -$.02; LY, $.73 
• WH, down $.0475 @ $4.1425; WK, down $.0475 @ $4.2750.  Funds continue selling with 4 K estimated on Friday            

CORN/SORGHUM

·       T-storm Weather: Rain is needed across Argentina as 94% of its first-crop corn was drier than normal the last 30 days

·       Consultant: With a smaller full-season corn crop in Brazil this year, the safrinha(double crop) corn will take on even more importance as it will account for slightly less than 75% of Brazil’s total corn production

• Export Inspections released at 10 am CST; Corn, 41.4 mbu needed; 23.1 last week.  Milo—4.3 needed; 10.2 last week
• USDA WASDE report Dec. 12: 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

SOYBEANS/WHEAT

·       T-storm Weather: In Brazil, rainfall of 3.00”-6.00: affects soybeans across much of Bahia, Goias, Mato Grosso & the northern half of Minas Gerais, over the next week.  The focal zone for rain then expands further south next week

• USDA WASDE Dec. 12: 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

·       Export Inspections released at 10 am CST; Soybeans, 36.2 mbu needed; 66.2 last week

·       Export Inspections released at 10 am CST; Wheat, 20.4 mbu needed; 15.0 last week

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

ENERGY

·       Mixed: CLF18, -$0.16 @ $57.20; EBG -$0.01 @ $63.39; EBG-QCLF, +$0.17; RBF,-.0011; NGF, +.026; HOF, +.0038

·       On Friday, cash ethanol markets were mostly higher: Chicago was quoted at $1.3335, up $0.02125; Basis to Chicago—New York, +7 ¾; Gulf, +7 ¾; Dallas, +1; Tampa, +13; and LA, +17

·       On Friday, ethanol RINs fell: 2016’s eased 4 to 73-75 ½; 2017’s down 4 at 73 ½-76; and 2018’s off 4 at 73 ½-76

·       The Jan RBOB/Jan ethanol spread gained $.0026 Friday, closing at +$.38760/gallon  

  LIVESTOCK/POULTRY                                ​;     

• Choice boxed beef values firmed 51-cents on Friday to $205.59, but are still 40-cents lower compared to a week ago
• Over the past seven trading days, February live cattle futures have declined $8.30 (6.6%)

·       USDA mandatory pork carcass cutout value eased 7-cents on Friday to $82.81, but is still up 22-cents vs. last week 

• CME Lean Hog Index gained $0.18 on Fri. to $65.48.  December futures were up $0.10 but are $1.805 below the index  

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