HIGHLIGHTS
· Market Trend: Corn, Up 2-3; Soybeans, 13-14 Higher; Wheat, 1-2 Higher. Europe: Wheat, +6; Corn, up 1 ½
· Asian equities bounced back overnight—EU stimulus talk in the form of more bond buying and steady economic growth in China—Nikkei, up 2.64%; Hang Seng gains 1.37% but Shanghai slips .57%. Follow-through in Europe is a little weaker with CAC-40 and FTSE down .06 to .15%; DAX, barely negative early-on. Pre-market U.S. indicators have the DOW 1 lower; S&P, off 3 and the NAS, 1.2 points lower. Externals: $ Index, up ¼ point; gold, $5 lower @ $1,246.20; energies, mostly higher
· T-Storm Weather: A few thunderstorms dot the western third to half of the U.S. Corn Belt tonight and Thursday, but most areas only receive 0.20” - 0.40” amounts to prevent harvesting from significantly slowing. A low chance for thunderstorms exists in the same area around Monday-Tuesday as another system passes, but other areas remain dry through the period for harvesting and planting. Temperatures remain particularly warm from Nebraska south as maximums oftentimes reach the 70s-80s as warm air blows inland from the desert southwest
· Dec Corn Up $.0250 at $3.5850; March Up $.0250 at $3.72. Tuesday had the funds buying 7 K
· Nov SB Up $.14 at $9.7825; Jan Up $.14 at $9.8525. Funds bought 8 K SB, 7 K SBM and were even SBO yesterday
· Dec Wheat Up $.0175 at $5.21; March Up $.0225 at $5.3525. The funds bought 5 K on Tuesday
CORN/SORGHUM ;
· ATI Research: Near-term U.S. corn exports forecast at 30-35mbu per week; 20-25 via Gulf, 3-5 off PNW & 5-7 Interior
· T-storm Weather: Widespread coverage of heavy rain is needed for corn planting and growth across Center-West, Northeast and Southeast Brazil. Conditions for planting slowly improve next week as areas of rain return
· Private crop consultant: Double-crop corn acreage in Brazil may be reduced due to current delays in soybean planting
· Ethanol margins: $0.38 per gallon vs. $0.26 last week but below $0.73 from a year ago. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· ATI Research: U.S. soybean exports are off to an extremely strong start; annual forecast is increased to 1.735Bbu
· T-storm Weather: Scattered thunderstorms improve soil moisture across Center-West Brazil through 7-10 days, but more rain will likely be needed across/near Southeast areas, which include around 11% of total soybean production
· ATI Research: Near- term U.S. wheat exports forecast at 15-20mbu per week; HRW, 5-7, SRW, 2-4; and HRS, 4-6
· T-storm Weather: Topsoil wetness is beginning to diminish for U.S. SRW wheat planting due to sustained drying in recent days. Conditions for remaining planting improve in most areas over the next 7 to 10 day
ENERGY
· Futures are mostly higher: QCLZ14,+$0.22 at $82.71; QRBZ,+$0.0141; QNGZ, -$.007; andQHOZ, +$.0103
· EIA estimates: crude, +3.1 (API: +1.2); Gasoline, -1.4 (-0.5); Distillates, -1.5 (-0.8)
· Additional gains were seen Tuesday in cash ethanol markets: Chicago gained 1 ½; Gulf and Tampa added ½; Dallas up 1; New York climbed 2 ½; and LA was 1 higher at $1.92 ½ per gallon
· Declines in RINs: 2013’s down ¼ at 46 ½-47; 2014’s off ¼ at 46 ½-47 ¼; and 2015’s were ¼ lower at 46 ½-47 ¼
· The November RBOB/Ethanol spread snugged in $.0038/gallon to $.4434
LIVESTOCK/POULTRY    
· Choice boxed beef values were unchanged yesterday at $249.84 but are 43-cents higher compared to one week ago
· October live cattle futures made another new contract high of $168.80 Tuesday but closed $1.35 lower at $166.55
· The USDA pork carcass cutout value declined $2.81 yesterday and has lost $13.21 over the last four trading days
· CME Lean Hog Index down $1.33 to $105.45. December futures dn $0.70 to $88.45 and are $17.00 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather