HIGHLIGHTS
· MARKET TREND: CORN: CU, Up $.0175; SOYBEANS: SU, Up $.1250; WHEAT: WU, Up $.0150; KWU: Up $.0075
· All seems well with the world, sort of. Yesterday’s Wall Street rally contributed to optimism in Asis where Shanghai posted its largest gain in 8 weeks, up 5.3%. The Nikkei rose 1.1% and the Hang Seng, +3.6%. Europe is clinging to Asia’s coat-tails, with the FTSE up 2.3% and both the DAX and CAC 40 showing early gains in excess of 3%. U.S. futures are positive as well: DOW, +198; S&P 500, +22 and the NAS, +60.50; suggesting 401-Ks may emerge from the day a little healthier. Jackson Hole is a focus today along with initial unemployment claims & a 2ndestimate on QII U.S.GDP with the bias for a sharply higher revision. Outlside markets: $ Index, +.314 @ 95.455; Oct WTI, +$1.78 and gold, $.40 higher at $1,225.00
· T-storm Weather: Cool to unseasonably cool weather continue into the weekend. A sharply warmer pattern begins Sunday-Monday and continues for around one week as upper-level high pressure expands. Mainly dry weather accompanies warmth as the main storm track focuses too far to the north for organized rainfall, and the remnant of Tropical Storm Erika likely stays in the Southeast. Better rain chances potentially begin across the central U.S. next weekend (within Sep. 5-7) as a cooler pattern most likely begins
· Sep Corn Up $.0175 at $3.6350; Dec Up $.0175 at $3.75. The funds sold 5 K at mid-week
· Sep SB Up $.1250 at $8.9025; Nov Up $.1175 at $8.7675. The funds sold 6 K SB, 2 K SBM and 6 K SBO
· Sep Wheat Up $.0150 at $4.9125; Dec Up $.0150 at $4.9575. The funds sold 4 K on Wednesday
CORN/SORGHUM         ;
· Export Sales to be released at 7:30 AM CDT. Trade expects 2 to 10 mbu old-crop corn, 18-26 new-crop
· T-storm Weather: Heavy rainfall affects a swath of the Corn Belt today-Friday. Highest totals in excess of 1.00" are most likely from northeast Nebraska through the northern half of Iowa and adjacent areas of Minnesota
· ATI Research: Accumulated rainfall from May 1-Aug. 25 in Bloomington, Illinois was approximately 26.18”, which is 46% above the 2014 total of 17.87” and 66% above the average for the period of 15.79”
· Ethanol grind: 952,000 barrels per day for week end Aug. 21—down 1.3% v. last week but 4.3% higher vs. a year ago
SOYBEANS/WHEAT
· Export Sales to be released at 7:30 AM CDT. Trade expects soybeans, 0 to 6 mbu old-crop, 22-33 new-crop; soymeal, 0-75 old-crop, 50-200 new-crop; soyoil, 0-20 old-crop, 0-10 new-crop
· T-storm Weather: Note that the National Weather Service is forecasting 30% and 9% of Iowa and Minnesota soybean production to receive at least 2.00" from the rain event that begins tonight, which is plausible but not yet probable
· Export Sales to be released at 7:30 AM CDT. Trade expects 8 to 15 mbu for 15/16 all wheat
· T-storm Weather: Mainly dry weather affects Argentina wheat short-term, leaving wettest areas favorably dry
ENERGY
· Firmer! CLV15, +1.78, $40.38; EBV,+$1.72; EBV-CLV, $4.51, +$.08, RBV, +$.0771; NGV, +$.002; HOV, +$.0498
· Cash ethanol markets were weaker on Wednesday: Chicago down 1 7/8; New York and Dallas off 1; Gulf declined 1 ¼; Tampa eased ½; and LA was 1 ¼ lower at $1.62 ¼ per gallon
· Ethanol RINs were mixed: 2013’s down ½ to 36 ¾-37; 2014’s up ¼ to 38 ¾-39 ¼; & 2015’s off ½ to 36 ¾-37
· The Sep RBOB/Sep Ethanol spread inverted further, up $.0587/gallon to -$0610 on Wednesday
LIVESTOCK/POULTRY   ;
· On Wednesday, choice boxed beef values were up 38-cents, but at $244.24 are $2.54 lower compared to a week ago
· Cash cattle trading has been quiet so far this week in the South with bids near $144 and asking prices around $150
· On Wednesday, USDA mandatory pork carcass cutout fell $2.40, and at $85.41 is at the lowest level since July 29
· CME Lean Hog Index was steady at $78.79. October futures down $0.50 at $67.00 and are $11.79 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather