HIGHLIGHTS

·       MARKET TREND—Weaker: CU: down $.0375; SU: down $.03; WU: down $.0375; KWU: down $.0325

·       MACRO: Kim Jong Un backs off, market give a sigh of relief and turns back to macro issues.  ASIA—Mostly higher: Nikkei, +1.11%; Shanghai, +0.44%; Hang Seng,-0.28%. EUROPE: Higher: DAX, +0.31%; FTSE, +0.45%; CAC,+0.45%.   WALL STREET—Futures are again higher—DOW,+53; S&P, +4.00; NAS, +13.25.  EXTERNALS:  $ Index: +.345 @ 93.650; Sep Gold: -$11.40 @ $1,274;  Oct crude: -$.19 @ $47.54/bl.  Dely: SBM, 62; SBO, 101; SB, 19

·       T-storm Weather: A large system produces widespread rain across the central U.S. through Thu., esp. tonight in the Plains, then further to the east Wed.-Thu.; 0.75"-1.50" amounts most common.  A trailing system may produce a few thunderstorms around Fri., but well-organized rain is not expected to follow until possibly next week.  Rain occurs this week as a transition to a warmer period continues, ultimately leading to near- and above-normal warmth from Sun.-Mon. forward, esp. with westward extent

·       CU, down $.0375 @ $3.59; CZ, down $.04 @ $3.7225.  The funds opened the week selling 5 K              

·       SU, down $.03 @ $9.2975; SX, down $.04 @ $9.3425.  Funds: sold 10 SB, 4 SBM, 5 SBO.  Board crush: $.92, 0; LY, $.89

·       WU, down $.0375 @ $4.3725; WZ, down $.0425 @ $4.6350.  Fund selling estimated at 5 contracts yesterday                    

CORN/SORGHUM

·       U.S. corn crop is rated 62% Good/Excellent versus 60% last week and 74% last year.  Silking is 97% compared to 99% last year and the 5-year avg.  of 98%.  Dough is 61% vs. 70% last year and the 5-year average of 62%

·       ATI Research: Updated yield estimate for the 2017 U.S. corn crop is 164.8 bpa versus August USDA projection of 169.5

·       U.S. sorghum crop is rated 64% Good/Excellent versus 61% last week and 65% last year.

·       T-storm Weather: The warmer period for U.S. corn next week is conducive to thunderstorms, but a number of uncertainties exist with near- or below-normal rainfall most probable (wettest north, driest south)

SOYBEANS/WHEAT

·       U.S. soybean crop is rated 59% Good/Excellent versus 60% last week and 72% last year.  Blooming is pegged at 94%, unchanged from last year & above the 5-year avg. of 93%.  Setting pods: 79% vs. 79% last year and the avg. of 75%

·       ATI Research: Updated yield estimate for the 2017 U.S. soybean crop is 47.0 bpa vs. August USDA projection of 49.4

·       T-storm Weather: Widespread rain is most needed across Iowa and northern Missouri given limited totals over the last 14-, 30-, and 60-day periods

·       ATI Research: HRS wheat crop estimate decreases 1 mbu to 340 after incorporating ATI Spring Wheat Tour results

·       T-storm Weather: Heaviest rain this week focuses to the east of U.S. spring wheat production

ENERGY

·       Lower: CLV17, -$0.19 @ $47.54; EBV, -$0.16 @ $50.57;EBV-QCLV, +.02; RBU, +.0001; NGU, -.014; HOU, -.0085

·       Cash ethanol markets were mixed on Monday: Chicago up 3/8; New York added ½; Gulf increased 1 ½; Tampa eased ½; Dallas declined 1; but LA was 1 higher at $1.77 per gallon

·       Ethanol RINs posted modest declines on Monday: 2016’s and 2017’s fell 3/8 to 91-92 ¼ 

·       The Sep RBOB/Sep ethanol spread moved $.0413 to an inverse Monday, now at -$.00330/gallon 

  LIVESTOCK/POULTRY                               ​      

·       Choice boxed beef values fell 68-cents on Monday to $198.92, and are down $3.80 vs. last week

·       5-Area Weekly Weighted Average Steer price down $2.13 v. last week at $115.17/cwt, and is $3.18 lower v. last year

·       USDA mandatory pork carcass cutout value eased 7-cents on Monday to $93.59, and is $3.41 lower vs. a week ago 

·       Current nearby board hog crush value is $38.60/cwt vs. last week’s $36.24, last month’s $35.39 & last year’s $30.86

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