HIGHLIGHTS

• MARKET TREND—Weaker: CH, -$.0050; SH, -$.0250; WH, -$.0325;  KWH, -$.0350

·       MACRO.  Markets expected to open higher though may be capped by an unexpected drop in Germany’s factory orders.  ASIA—Higher:  Nikkei, Closed; Shanghai, +0.54%; Hang Seng, +0.28%.  EUROPE: Mostly higher: DAX,+0.41%; FTSE, -0.04%; CAC, +0.41%. WALL STREET—Futures point to a positive opening—DOW, +40; S&P, +.25; NAS, +2.50. EXTERNALS: $ Index: +.237 @ 91.91; Feb Gold: -$1.70 @ $1,321; Feb crude: +$0.36 @ $61.80.  Deliveries:  SBM, 266; SBO, 0 SB, 21; RR, 10; ETOH, 0 

• T-storm Weather: Widespread and heavy rain is needed in Argentina.  A stormy period begins Thu.-Fri. and more-so Sat.-Sun. as a series of systems flow eastward, most likely producing widespread rainfall of 1.00” to 2.00” over the next 10 days.  That said, important atmospheric details remain unclear and will take another day or two to fully resolve.  Otherwise, mixed weather occurs in Brazil as some northern areas turn drier, while central and southern areas turn wetter
• CH, down $.0050 @ $3.5075; CK, up $.0025 @ $3.59.  The funds were even inFriday’s trade                
• SH, dn $.0250 @ $9.6825; SK, dn $.0250 @ $9.79.  Funds: Bot 5 K SB, 3 K SBM, sold 2 K SBO.  Board Crush: $1.09, -1; LY, $.75
• WH, down $.0325 @ $4.2750; WK, down $.0325 @ $4.3950.  The funds were estimated to have sold 1 K on Friday                        

CORN/SORGHUM

• T-storm Weather: In Argentina, a total of 89% of first-crop corn was drier than normal over the 60-day period ending Friday morning

·       Export Inspections released at 10 am CST: Corn 43.1 mbu needed; 26.9 last week.  Milo—5.6 needed; 4.8 last week

·       Consultant: Brazil’s farmers lack enthusiasm at this point for planting 2017/18 safrinha(double crop) corn.  Low corn prices are the big obstacle with the current domestic price well below breakeven levels

• ATI Research: Analog crop years suggest the potential for a modest increase in the updated 2017 U.S. corn yield

SOYBEANS/WHEAT

• T-storm Weather: In Argentina, a total of 85% of first-crop soybeans were drier than normal over the 60-day period ending Friday morning

·       Export Inspections released at 10 am CST: Soybeans 33.8 mbu needed; 41.9 last week

·       Consultant: The recent devaluation of the Argentine peso has been a boon to Argentina farmers as it results in a higher domestic soybean price.  As a result, Argentina farmers have increased sales of old-crop soybeans significantly

·       Export Inspections released at 10 am CST: Wheat 20.1 mbu needed; 10.1 last week

·       T-storm Weather: Some rain & snow affect U.S. HRW wheat in Colorado, northern Kansas & points north Wed.-Thu.

ENERGY

·       Firmer: CLG18, +$.36 @ $61.80; EBH, +$0.20 @ $67.82; EBH-QCLH, -$0.14; RBG,+.0025; NGG, ​+.068; HOG, +.0029

·       On Friday, cash ethanol markets were mixed: Chicago was quoted at $1.25625, down $0.0125; Basis to Chicago—New York, +14 ¼; Gulf, +10 ¼; Dallas, +14 ¼; Tampa, +30 ¾; and LA, +33 ¾

·       On Friday, ethanol RINs fell: 2016’s off 2 ¾ to 62 ½-65; 2017’s eased 2 ¾ to 63 ½-66; and 2018’s down 2 ¾ to 63 ½-66

·       The Feb RBOB/Feb ethanol spread lost $.0179 on Friday, slipping to +$.47080/gallon  

  LIVESTOCK/POULTRY           &nb​sp;                        &nb​sp;

• Choice boxed beef values were 84-cents higher on Friday at $209.51
• Moderate cash cattle trading occurred on Friday with most trades in the South pegged at $122—down $1 v. last week

·       USDA mandatory pork carcass cutout value firmed $1.01 on Fri. to $78.31, and is 71-cents higher vs. last week  

• CME Lean Hog Index firmed $0.59 on Fri. to $64.22.  February futures gained $0.05, & are $7.205 above the index

Sources: Bloomberg, Dow Jone

s, AP, DTN, T-storm Weather