HIGHLIGHTS
· Market Trend: Corn, 2-3 Higher; Soybeans, November down 2, deferreds 2-4 Higher; Wheat, 1-3 Lower.
· A mostly higher trend is being seen in global markets so far today. In Asia, Japan’s Nikkei 225 increased 1.1% while Hong Kong’s Hang Seng gained 0.3%. China’s Shanghai Composite Index declined 0.4% but Europe is firmer, +0.64% (DAX) and +0.23% (FTSE). After 5 record highs, U.S. socks pulled back slightly on Wednesday, although early indicators are pointing toward a higher opening for Thursday: DOW futures, +38; S&P, +6; NAS, +14. Outside markets: gold, +$2.00; energy futures, lower; $ Index, down .131
· T-storm Weather: Scattered thunderstorms increase soil moisture for corn & soybeans across much of Center-West & Southeast Brazil through Friday. A period of drying for Center-West & Southeast lasts for 3-5 days in Goias & Mato Grosso, but humidity levels increase as next week progresses, thereby aiding thunderstorm formation & maintaining or improving soil moisture. Mainly dry weather occurs to the immediate south, & some heat unfolds in Argentina from this weekend forward. The lack of rain lasts for 7-10 days, but is not problematic for most, as it will allow topsoil moisture to diminish and for planting to resume
· Dec Corn Up $.03 at $3.8075; March Up $.0275 at $3.9325. On Wednesday, the funds bought another 5 K. 0 ethanol deliveries
· Nov SB Down $.0225 at $10.46; Jan Up $.0275 at $10.505. Funds: sold 7 K SB, -3 K SBM, 0 K SBO. 0 SB deliveries
· Dec Wheat Down $.01 at $5.4175; March Down $.0325 at $5.4475. Fund bought 8 K on Wednesday
CORN/SORGHUM    
· December 2014 corn futures traded $3.85 on Wednesday, which is highest price for contract since July 18
· T-storm Weather: At least 7 days of dry weather affects Argentina as upper-level high pressure establishes. Dry weather is needed for corn planting because most areas were wetter to much wetter than usual over the last 2 weeks
· ATI Research: Corn export values from key exporters in South America & Black Sea still at a $10-$15 discount to U.S.
· EIA report at 10:00 AM CST. Ethanol production last week was 929,000 thou barrels per day
SOYBEANS/WHEAT
· November 2014 soybean futures traded $10.86 ¾ on Wednesday, which is highest price for contract since Aug. 11
· T-storm Weather: Key areas in Brazil from Mato Grosso eastward through Bahia and Minas Gerais would benefit from additional rainfall for soybean planting and/or growth
· ATI Research: Analog years of U.S. soybean yield increases in Sept, Oct & Nov show change of -0.3 to +0.7bpa in Jan
· CBT December 2014 wheat futures traded $5.45 ¾ on Wednesday, which is highest price for contract since Sept. 3
· T-storm Weather: 7% of U.S. HRW wheat fell below zero Tues. but protective snowpack limited winterkill coverage
ENERGY
· Futures are lower: QCLZ14, -$0.42 at $76.76; QRBZ, -$0.0267; QNGZ, -$.028; andQHOZ, -$.0316
· EIA estimates: crude, +0.3 (API: -1.5); Gasoline, +0.3 (+1.1); Distillates, -1.6 (-1.3)
· Cash ethanol markets were significantly higher on Wednesday: Chicago up 6 ½; Gulf jumped 9; New York added 6; Tampa soared 11; Dallas climbed 8 ½; and LA was 7 higher at $2.37 per gallon
· RINs were higher: 2013’s gained 3/8 to 46 ½-47 ½; 2014’s up ¼ to 47-47 ¾; and 2015’s added ¼ to 46-47
· The Dec RBOB/Dec Ethanol spread increased $.0214 cents to $.204 on Wednesday
LIVESTOCK/POULTRY    
·   Choice boxed beef values were $1.47 higher on Wednesday and 20-cents higher compared to last week
· New contract highs made Wed. for the February ($169.90), April ($168.50) and June ($158.875) live cattle futures
· On Wednesday, the USDA pork carcass cutout value decreased $1.01 and is $1.08 lower vs. a week ago
· CME Lean Hog Index up $0.06 to $87.99. December futures up $0.775 to $90.675 and are $2.685 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather
Brian Basting
mail to: bbasting@advance-trading.com
http://www.advance-trading.com