HIGHLIGHTS
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TRENDS—(5:00 am)—Higher: CH, +$.0225; SH, +$.0425; WH, +$.04; KWH, +$.0325
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MACRO: Brexit uncertainties have overseas markets mixed; U.S. futures are higher. Asia: Mostly higher--Nikkei, -0.55%; Shanghai,unch; Hang Seng, +0.27%. EUROPE: Mostly firm—DAX, +0.02%; FTSE,-0.37%; CAC, +0.30%. WALL STREET: Futures are higher: DOW, +60;S&P, +5.75; NAS, +1.25. EXTERNALS: Feb crude: -$0.19 @ $51.92;Gold: +$1.10 @ $1,290; Mar $ Index, -0.0458 @ 95.630
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T-storm Weather: In South America, a new pattern begins this weekend. Until then, only isolated thunderstorms dot central and northern Brazil, while scattered thunderstorms affect Argentina tonight and Thursday before ending; 5-7 days of drying follow in Argentina before some thunderstorms return Jan. 24-25. Scattered thunderstorms initiate over Fri.-Sun. in central and northern Brazil and then continue (except for northeast fringe of corn and soybeans in/near Bahia and central and northern Minas Gerais)
· CH, up $.0225 @ $3.7350; CK, up $.0250 @ $3.8225. Heavy fund selling on Tuesday, estimated at 10 K
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SH, up $.0450 @ $8.9750; SK, up $.0450 @ $9.1125. Funds: Sold 6 K SB, 3K SBM & 2 K SBO. Board Crush: $0.98, +3; LY: $1.03
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WH, up $.0375 @ $5.1475; WK, up $.0350 @ $5.1950. Management money accounts liquidated 3 K yesterday
CORN/SORGHUM
· Consultant: Argentina corn production est. for 2018/19 is unch this week at 40.5 MMT. Corn is 86% planted with approx. 7% of remaining acreage in the north. It is uncertain if northern acres will get planted due to wet conditions
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T-storm Weather: In Argentina, a dry period develops for 5-7 consecutive days starting Fri.-Sat. Scattered rain returns Jan. 24-25, most likely producing 1.00”-2.00” in southern areas, but sparing wettest northern areas with lesser totals
· Ethanol margins: $0.03 per gallon—up vs. $0.02 last week but well below $0.24 in 2018. EIA report at 9:30 am CST
SOYBEANS/WHEAT
· Consultant: Argentina soybean crop estimate is unchanged at 56.0 MMT. Planting progress is at 96% with approx. 2% of remaining acreage in the north. It is uncertain if northern acres will get planted due to wet conditions
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T-storm Weather: In Argentina, a dry period develops for 5-7 consecutive days starting Fri.-Sat. Scattered rain returns Jan. 24-25, most likely producing 1.00”-2.00” in southern areas, but sparing wettest northern areas with lesser totals
· T-storm Weather: Drought is no longer a significant issue for winter wheat across the EU, Russia or Ukraine
· Chicago March 2019 wheat futures on Tue. closed at $5.11; one year ago, Chi. March 2018 wheat settled at $4.16 ½
ENERGY
· Lower: CLG19, -$0.19 @ $51.92; EBG, +$0.05 @ $60.70; EBG-QCLG, +$0.21; RBG, -.0033; NGG, -.016; HOG, +0.0001
· EIA Report Estimates (API): crude oil, -2.0 (-0.56); Gasoline, +2.3 (+6.0); Distillates, +0.9 (+3.2). Estimates for ethanol prod. avg. 1.009 mbpd (range: 0.999-1.022). Avg. est. of ethanol stocks: 23.493 mb (range 23.300-23.594)
· Chicago ethanol was off $.0225 @ $1.2625; basis values were mostly firm: New York, +$.0125 @ $.1475; Gulf, unch @ $.1125; Dallas, +$.0175 @ $.0575; Tampa, +$.01 @ $.16; and LA, +$.0025 @ $.1925
· Ethanol RINs were rose: 2017’s, -.625 @ 11-11 ¾; 2018’s, +0.625 @ 15 -15 ¾; 2019’s, +0.3750 @ 18-18 ½
· The Feb RBOB/Feb ethanol spread reversed course, widening $.0584 to+$.1394/gal; trading $.1172 this morning
LIVESTOCK/POULTRY  
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Choice boxed beef values firmed 19-cents on Tuesday to $212.21, but are still $1.77 lower vs. a week ago
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Feb. live cattle futures on Tue. made a contract high of $127.10; highest price for nearby futures since Feb. 28, 2018
· USDA mandatory pork carcass cutout value was $1.33 lower on Tue. at $68.54, but is still a penny higher vs. last week
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CME Lean Hog Index gained $0.44 on Tue. to $57.65. February futures firmed $0.30, and are $4.50 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather
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