HIGHLIGHTS
· Market Trend: Corn, Up 1-2; Soybeans, SU Down ½; SX, Up 4-5; Wheat, ¼ to ½ Higher
· Japan reported a 2.6% gain year to year gain in wages during the month of July, much higher than expected and critical to its economic recovery. This contributed to a 1.5% gain in the Nikkei. Shanghai rose .9% with the Hang Seng .2% easier. Data from Europe is unavailable. S&P futures point to a 13.75 higher start; the S&P looks 3.75 higher and Dow futures are up 35. The outside markets have energy futures weaker; gold is off $18.10 to $1,267.10 per oz and the $ Index is up a 1/5 of a point to 82.98
· T-Storm Weather: Numerous cool fronts sweep across northern U.S. over the next week, but fail to penetrate hot and muggy air in the southern U.S. The alignment of temps forces the energy-laden jet stream to flow directly across the central U.S., resulting in multiple thunderstorm clusters. Widespread rain of 1.00” – 3.00” (and locally higher) is expected away from the western Plains, focused on concentrated corn and soybean areas. Except for northern Plains, most areas remain warmer than average
· Sep Corn Up $.0150 at $3.6050; December Up $.0150 at $3.6625. Deliveries: 0. The funds bought 7 K on Friday
· Sep Soybeans Down $.0050 at $10.89; Nov Up $.0475 at $10.29. Del’y: SBO, 259. The funds bought 5 K SB; 2 K SBM; sold 6 SBO
· Sep Wheat Up $.0025 at $5.5050; December Up $.0050 at $5.64. Del’y: 546 HRW; 49 SRW. Funds: sold 6 K
CORN/SORGHUM
· ATI Research: USDA Crop Progress likely to show U.S. corn crop Good/Excellent 72-74% vs. 73% last week, 56% last yr.
· U.S. corn mature estimated est. at 5-10% as of Aug. 31 compared to 3% last year and the 5-year avg. of approx. 16%
· Closing price for nearby corn futures on August 31 (last day of the crop year): 2012, $8.02 ¾; 2013, $4.95; 2014, $3.59
· International Grains Council raises its forecast for world corn production by 4 MMT to 973 mmt
· Commitment of Traders report: Non-Commercial long corn futures only positions decrease 12,069 contracts
SOYBEANS/WHEAT
· ATI Research: Crop Progress likely to show U.S. soybean crop Good/Excellent 69-71% vs. 70% last week, 54% last year
· U.S. soybeans dropping leaves est. at 5-10% compared to 4% last year and the 5-year average of approx. 8%
· Commitment of Traders report: Non-Commercial long soybean futures only positions decrease 2,487 contracts
· ATI Research: Crop Progress likely to show U.S. spring wheat Good/Excellent 65-66% vs. 66% last week, 70% last year
· International Grains Council raises its forecast for world wheat production by 11 MMT to 713 mmt
· Commitment of Traders: Non-Commercial long CBT wheat futures only positions decrease 538 contracts
ENERGY
· Futures are weaker: QCLV14, -$0.82 at $95.14; QRBV,-$0.0367; QNGV, -$.061; and QHOV, -$.0272
· A mixed trend was seen in cash ethanol markets last Friday: Chicago off 1 ¾; Gulf and New York eased ½; Dallas was steady; Tampa up 1; and LA was 3 ½ higher at $2.41 per gallon
· Fractional declines in RINs: 2012’s off ¼ at 49-49 ½; 2013’s down 1/8 at 49-49 ½; & 2014’s eased 1/8 to 49-49 ½
· The October RBOB/September Ethanol spread gained $.0180 per gallon on Friday to $.5827
LIVESTOCK/POULTRY   ;
·   Choice boxed beef values eased 59-cents Friday and have lost $16.11 over the last 16 trading days
· Cash cattle traded at mostly $155 to $156 on Friday, up $3 from the previous week’s $152 to $153
· The USDA pork carcass cutout value increased $1.65 Friday and has gained $2.47 over the last two days
· CME Lean Hog Index down $1.30 to $97.56. October futures up $2.65 to $98.125 and are $0.565 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather