HIGHLIGHTS

•        MARKET TREND—Mixed:  CU, +$.0050; SU, +$.10; WU, -$.0575; KWU, -$.03

•        MACRO:  WSJ reports China/U.S. hope to have a trade deal inked by November, according to officials from both countries.   Asia—Mostly higher: Nikkei, -0.32%; Shanghai, +1.11%; Hang Seng, +1.41%.  EUROPE:  Higher:  DAX, +1.12%; FTSE, +0.56%; CAC, +0.72%.  WALL STREET: Futures are higher: DOW, +78; S&P, +6.25; NAS, +27.00.  EXTERNALS: Sep crude: +$0.+01 @ $65.92; Aug Gold: +$8.30 @ $1,184; Dec $ Index, +0.264 @ 95.840

•        T-storm Weather: A strong system & cool front sweep across the central U.S. through today, resulting in generalized rain totals of 0.50”-1.50” across & adjacent the Corn Belt (with higher totals of 1.00”-2.00”+ in/near eastern NE & the northwest half of IA), including nearly all corn & soybeans.  Temps plummet & drying follows for several days as the system exits, resulting in an early taste of autumn with maximum in the 60s-70s & minimums in the 40s-50s for three days across a wide swath of the central U.S.

•        CU, up $.0050 @ $3.6475; CZ, up $.0025 @ $3.79.  The funds were even inFriday’s trade     

•        SU, up $.10 @ $8.9150; SX, up $.0925 @ $9.02.  Funds: Sold 3 SB, 4 SBM, bot 1 SBO.  Board Crush: $1.55, -$.05, LY: $.86

•        WU, down $.0575 @ $5.5475; WZ, down $.050 @ $5.7475.  Russian talk of capping exports/crop worries led to 9 K in fund buying     

 

CORN/SORGHUM

• Consultant: USDA Crop Progress report to peg U.S. corn Good/Excellent 68-70% v. 70% last week and 62% last year

·       T-storm Weather: A notably warmer period begins from west to east for U.S. corn late in the week and then continues over Aug. 25-31, while also triggering occasional thunderstorms in at least northern areas

• Updated NWS forecast for month of September is for equal chance of above or below-normal rain for all major corn areas except western KS (above normal).  An equal chance of above or below normal temps is forecast for all areas
• Export Inspections released at 10 am CDT; Corn, 90.9 mbu needed; 49.7 last week.  Milo—5.8 needed; 0.03 last week

SOYBEANS/WHEAT

• Consultant: USDA Crop Progress report to peg U.S. soybean Good/Excellent 64-66% v. 66% last week & 60% last year
• T-storm Weather: Near-normal rain this week across southeast half of central U.S. is expected to coincide with above-normal totals across northwest half, followed by a stormier period in at least northern areas Thu.-Fri. forward

·       Export Inspections released at 10 am CDT; Soybeans, 42.5 mbu needed; 21.3 last week

·       Export Inspections released at 10 am CDT; Wheat, 21.1 mbu needed; 17.0 last week

• T-storm Weather: In Australia, 0.30" to 0.80" of rain in was seen in wheat areas of New South Wales and Queensland Friday-Saturday, but much less-so elsewhere and a period of drying likely follows

ENERGY

·       Mixed: CLU18, +$0.01 @ $65.92; EBV, +$0.23 @ $72.06; EBV-QCLV, +$0.26; RBU, +0.0008; NGU, -.033; HOU, +.0038

·       On Friday, cash ethanol markets were mixed: Chicago was quoted at $1.35875, down $0.0115; Basis to Chicago—New York, +$0.10125; Gulf, +$0.09625; Dallas, +$0.04625; Tampa, +$0.18375; and LA, +$0.33125

·       Ethanol RINs were weaker on Friday: 2017’s fell ¾ to 15 ½-17 ½; and 2018’s eased 7/8 to 19 ½-20 ½

·       The September RBOB/September ethanol spread narrowed in fractionally, $.0005 on Friday to $.61990/gallon 

 LIVESTOCK/POULTRY                                    &nb​sp; 

• Choice boxed beef values increased $2.28 on Friday to $211.38, and are up $4.77 compared to a week ago
• Fairly active cattle market developed in Northern tier Fri.; dressed deals marked at mostly $173, roughly $2.50 lower
• USDA mandatory pork carcass cutout value declined 70-cents on Friday to $66.03, and is down $4.19 vs. last week 
• CME Lean Hog Index fell $1.27 on Friday to $52.94.  October futures climbed $3.12, & are $5.66 above the index

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