HIGHLIGHTS

• TRENDS—(5:50 am) Lower: CH, -$.0075; SH, -$.0125; WH, -$.0450; KWH, -$.0425
• MACRO: Fed says biggest challenges to U.S. economy are sluggish productivity and the widening wealth gap; jobless claims out at 9:30.  Asia: Lower--Nikkei, -0.59%; Shanghai, Closed; Hang Seng, Closed. EUROPE: Lower—DAX, -1.36%; FTSE, -0.28%; CAC, -0.70%.  WALL STREET: Not a good start, potentially: DOW, -142; S&P, -16.25; NAS,-43.25.  EXTERNALS: March crude: -$0.37 @ $53.64; Gold:  -$3.50 @ $1,311; Mar $ Index, +0.253 @ 96.405 
• T-storm Weather: In South America, cool fronts this week and next week produce 3.00" to 6.00" of rain in central and northern areas of Brazil, near-normal rainfall of 1.00" to 3.00" in southern Brazil and Paraguay, and 0.50" to 1.50" in Argentina.  The coverage and / or intensity of drought diminishes as a result across Brazil, while the lack of frequent and heavy rains leaves soil moisture adequately moist through mid-month in Argentina  

·       CH, dn $.0075 @ $3.7925; CK, dn $.0050 @ $3.8750.  The funds were modest sellers at mid-week, 2 K 

• SH, dn $.0125 @ $9.2050; SK, dn $.0175 @ $9.34.  Funds: Even SB, sold 1 SBM, bought 4 SBO.  Board Crush:, $.98, +3; LY, $1.13
• WH, dn $.0450 @ $5.2150; WK, dn $.0425 @ $5.2450.  The funds were said to be even in Wednesday’s trading           

   CORN/SORGHUM

·&nb​sp;      Export Sales to be released at 7:30 am CST.  Trade expects 24-55 mbu for 18/19 corn

• Feb. 8 USDA Grain Stocks report: Avg. trade guess for Dec. 1 U.S. corn stocks is 12.092 bbu (range: 11.940-12.400)

·       Feb. 8 USDA Supply/Demand report: Avg. trade guess for U.S. corn 18/19 carryout is 1.708 bbu (range: 1.621-1.787)

• Consultant: In Argentina, weather has generally been good for early planted corn, which is 6% mature

·       T-storm Weather: In Argentina, only ~6% of corn received at least twice its normal rain for the 30 days ending Feb. 4

·       Ethanol grind: Total of 967,000 barrels/day for week ending Feb. 1—down 4.4% vs. prior week & down 8.5% vs. 2018

SOYBEANS/WHEAT

·       Export Sales to be released at 7:30 am CST.  Trade expects 15-37 mbu for 18/19 soybeans

• Feb. 8 USDA Grain Stocks report: Avg. trade guess for Dec. 1 U.S. soybean stocks is 3.743 bbu (range: 3.414-3.872)

·       Feb. 8 USDA Supply/Demand report: Avg. trade guess for U.S. soybean 18/19 carryout: 0.926 bbu (range: 0.800-1.015)

·       Consultant: Current estimate for Brazilian soybean production is 113.0 MMT with a lower bias; range is 105.0-116.0  

·       Export Sales to be released at 7:30 am CST.  Trade expects 6-15 mbu for 18/19 wheat

• Feb. 8 USDA Winter Wheat Seedings report: Avg. trade guess all winter: 32.1 mil; HRW, 22.6; SRW, 6.0; and White, 3.5

·       Feb. 8 USDA Supply/Demand report: Avg. trade guess for U.S. wheat 18/19 carryout: 0.989 bbu (range: 0.950-1.028)

ENERGY

·       Lower: CLH19, -$0.37 @ $53.64; EBJ, -$0.24 @ $62.45; EBJ-QCLJ, +$0.12;RBH, -.0144; NGH, -.040; HOH, -0.0092

·       Chicago ethanol was off $.0025 to $1.30250; basis values were mixed: New York, -$.0050 @ $.1075; Gulf, -$.0025 @ $.10250; Dallas, +$.0075 @ $.07750; Tampa, -$.0025 @ $.1675; and LA, +$.0075 @ $.16750    

·       Ethanol RINs, mostly weaker: 2017’s, -0.25 @ 16-16 ¾; 2018’s, -0.25 @ 17 -17 ¾; 2019’s, +0.125 @ 20 ½- 20 ¾                                    

​ ·       The March RBOB/March ethanol spread added $.0462 yesterday, to+$.15210/gal

LIVESTOCK/POULTRY              &​nbsp;                        <​/wbr>

• Choice boxed beef firmed 55-cents on Wednesday to $217.57, but is still 48-cents lower versus last week 
• Cash cattle trade was undeveloped on Wednesday with asking prices of $126 to $127 live and $200 to $203 dressed

·       USDA mandatory pork carcass cutout value was 74-cents lower on Wed. at $64.43, & is down 60-cents vs. a week ago

• CME Lean Hog Index fell $0.20 on Wed. to $57.16.  February futures eased $0.50, and are $1.235 below the index

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