HIGHLIGHTS
· Market Trend: Corn, Up ½ to 1; Soybeans, SQ, Up 7; SX, Down 2-3; Wheat, 4-5 Lower
· July inflation in China holds at 2.3%, well under the 3 ½% target rate; Russia calls an end to military exercises near the Ukraine. In Asia, the Nikkei rebounds to close up 2.38%; both Shanghai and the Hang Seng gain 1.3-1.4%. Europe is off to a positive start with the FTSE and CAC 40 each up .7-.8%; the DAX gains 1.58%. Hitting where it hurts?—Gulfstream will not service/supply parts to Russian oil baron Timchenko, private jet sits on the tarmac. U.S. futures are higher: Dow, up 57; S&P, 7 ½ higher & the NAS, +20.75. Gold, down $1.40 at $1,307.50; $ Index, up .066 at 81.52; energy futures are mixed
· T-Storm Weather: Areas of high pressure slide across the Great Lakes over the next week, suppressing rain across the heart of the Corn Belt as cool & dry air hugs the ground. Areas of rain occur away from coolness through today, which is generally in/near parts of central Plains & Delta. Mainly dry & cool weather follow for much of this week, though a cool front triggers a few thunderstorms around Friday. After the cool front passes, a cooler air mass recurs & likely keeps rains focused on southern areas
· Sep Corn Up $.0050 at $3.5225; December Up $.0050 at $3.64. Fund selling estimated at 10 K on Friday
· August Soybeans Up $.0725 at $12.92; Sep Up $.06 at $11.1975. Funds bought 3 K SB; 2 K SMB and sold 3 K SBO
· Sep Down $.0475 at $5.4450; December Down $.0475 at $5.6125. The funds closed out the week selling 6 K
CORN/SORGHUM
· ATI Research: USDA Crop Progress likely to show U.S. corn crop Good/Excellent 72-73% vs. 73% last week, 64% last yr.
· Export Inspections released at 10 AM CDT; Corn, 52.1 needed; 44.9 last week. Milo—5.0 needed; 4.8 last week
· Commitment of Traders report: Non-Commercial long corn futures only positions increase 21,674 contracts
· T-storm Weather: U.S. corn remains 5 degrees cooler than average over the next week as areas of surface-level high pressure slides across the Great Lakes
SOYBEANS/WHEAT
· ATI Research: Crop Progress likely to show U.S. soybean crop Good/Excellent 70-71% vs. 71% last week, 64% last year
· Crop Progress: U.S. soybeans setting pods likely to be 70-75% compared to 55% last year and the 5-year avg. of 65%
· Export Inspections released at 10 AM CDT; Soybeans, 9.4 needed; 1.4 last week
· Commitment of Traders report: Non-Commercial long soybean futures only positions increase 2,708 contracts
· ATI Research: Crop Progress likely to show U.S. spring wheat Good/Excellent 69-70% vs. 70% last week, 66% last year
· Commitment of Traders: Non-Commercial long CBT wheat futures only positions increase 6,336 contracts
ENERGY
· Futures are mixed: QCLU14, +$.07 at $97.72; QRBU, -$0.0014; QNGU,+$.036; and QHOU, -$.0043
· Cash ethanol markets were steady to higher on Friday: Chicago gained 5 ¼; Gulf climbed 6; Tampa was unchanged; New York firmed 2; Dallas added 2 ½; and LA up ½ at $2.29 per gallon
· Weaker trend in RINs: 2012’s off ½ to 52-54; 2013’s down ½ at 52-54; and 2014’s declined ¾ to 52 ½-53 ½
· The September RBOB/September Ethanol spread lost nearly 4 cents on Friday, settling at $.7227/gallon
LIVESTOCK/POULTRY    
·   After firming 44-cents on Thursday, Choice boxed beef values lost $1.96 on Friday
· Cash cattle traded on Friday at mostly $160, down $3 from the week before
· After firming 26-cents on Thursday, the USDA pork carcass cutout value declined $1.43 on Friday
· CME Lean Hog Index down $1.23 to $120.99. August future down $1.00 to $114.225 and are $6.765 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather