HIGHLIGHTS
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MARKET TREND—grains/oilseeds slightly weaker: CH, -$.0050; SH, -$.0250; WH, -$.02; KWH, -$.0175
· MACRO. A rising tide lifts all boats—here and overseas. ASIA—Higher: Nikkei,+3.26%; Shanghai, +0.52%; Hang Seng, +0.57%. EUROPE: Higher: DAX,+0.96%; FTSE,+0.04; CAC, +1.00%. WALL STREET—Repeating--Market enthusiasm continues—DOW futures, +73; S&P, +3.25; NAS, +11.75. EXTERNALS: $ Index: -.201 @ 91.695; Feb Gold:-$4.60 @ $1,314; Feb crude: +$0.14 @ $61.77. Deliveries: SBM, 300; SBO, 0 SB, 21; RR, 3
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T-storm Weather: In Argentina, scattered thunderstorms focus on / near Buenos Aires tonight, but more rain will be needed given the coverage of 14- and 30-day dryness. One week of dry weather follows / continues the exit of thunderstorms, also accompanied by heat net week. In Brazil, thunderstorms focus on driest areas of / near Goias and Minas Gerais over the next few days, followed by varying areas of thunderstorms in central and northern areas over the following week
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CH, down $.0050 @ $3.5250; CK, down $.0050 @ $3.6075. The funds were said to have been even in mid-week trading
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SH, down $.0225 @ $9.6650; SK, dn $.0225 @ $9.7725. Funds: Bot 3 K SB, 1 K SBM, 3 K SBO. Board Crush: $1.05, +1; LY, $.74
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WH, down $.02 @ $4.3400; WK, down $.02 @ $4.4625. More buying in wheat on Wednesday, estimated at 4 K
CORN/SORGHUM
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T-storm Weather: Increased rain for Argentina corn is possible starting late next week. Generalized totals of 0.75" to 1.50" north and 0.50" to 1.00" south are most likely over Jan 12-16. ~2.00" to ~2.25' is normal of the next two weeks
· Consultant: Argentina corn production estimate for 2017/18 is unchanged this week at 42.0 MMT vs. 41.0 MMT last year. The most advanced corn is in central Argentina where the crop is either in the milk stage or the dough stage
· Ethanol margins: $0.23 per gallon—up vs. $0.22 last week but below $0.35 in 2017. EIA report at 10:00 am CST
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December 2018 corn futures on Wednesday closed at $3.86; one year ago, December 2017 futures settled at $3.86 ¾
SOYBEANS/WHEAT
· Consultant: Argentina soybean production est. is steady at 55.0 MMT. Recent weather has been good enough to stabilize the situation in the central region, but they could still use more moisture especially in northern crop areas
· T-storm Weather: Southern Brazil soybeans will be dry the next 10 days, but rain likely returns beyond next weekend
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ATI Research: Bias on near-term U.S. all wheat exports is 15-20 mbu per week
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T-storm Weather: A stormier period affects U.S. SRW wheat starting Jan. 8, but a winter storm is unlikely for HRW
ENERGY
· Weaker: CLG18, +$.14 @ $61.77; EBH, -$0.14 @ $67.70; EBH-QCLH, -$0.24; RBG,-.0009; NGG, -.001; HOG, -.0136
· EIA Report Estimates (API): crude oil, -4.7 (-5.0); Gasoline, +2.0 (+1.9); Distillates, +0.2 (+4.3). Estimates for ethanol prod. avg. 1.080 mil barrels/day (range 1.070-1.090). Avg. est. for ethanol stocks is 22.1 mil barrels (range 21.7-22.5)
· On Wednesday, cash ethanol markets were weaker: Chicago was quoted at $1.29, down $0.025; Basis to Chicago—New York, +13 ½; Gulf, +10 ½; Dallas, +12 ½; Tampa, +27 ½; and LA, +28 ½
· On Wednesday, ethanol RINs fell: 2016’s off ¾ to 67 ½-70; 2017’s down ¾ to 68 ½-71; and 2018’s eased ¾ to 68 ½-71
· The Feb RBOB/Jan ethanol spread recovered all of Tuesday’s losses, up $.0513 to+$.47940/gallon
LIVESTOCK/POULTRY  
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Choice boxed beef values were $3.48 higher on Wednesday at $208.62, and are up $7.02 v. a week ago
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The week-to-week increase in choice boxed beef values of $7.02 is the largest since Nov. 6
· USDA mandatory pork carcass cutout value firmed 16-cents on Wednesday to $77.61, and is $1.68 higher v. last week
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CME Lean Hog Index climbed $0.52 on Wed. to $62.75. February futures gained $0.325, & are $8.30 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather