HIGHLIGHTS
· MARKET TREND— A bit firmer--CZ: Up $.0050; SX: Up $.0075; WZ: Up $.01; KWZ: Up $.0225
· MACRO: Equity markets turning weaker; British pound was off as much as 6% in Asia—Brexit ramifications as EU wants to take a hard line in negotiations. ASIA: --Nikkei, down .23%; Shanghai, closed; Hang Seng, -.42%. EUROPE: Mostly Lower: FTSE, +.83%; DAX, -.71%; CAC, -.60%. WALL STREET: Pre-markets are again negative--DOW, -46; the S&P, -7.00; NASDAQ, -15.75. EXTERNALS: $ Index, +.2881 @ 97.060; Gold, +$6.20 @ $1,259.50; Nov Crude, -$.21 @ $51.23. Deliveries: 78 SBM; 0 SBO
· T-Storm Weather: Pockets of rain re-affect U.S. eastern Plains & western Corn Belt today as strong & severe thunderstorms erupt. Rain totals (including amounts from yesterday) reach 0.75”-1.50” in many of the areas that received at least 1.00” of rain over the last week, as well as areas further east that were particularly wet by having received at least 8.00” over the last 30 days. Drier conditions are forecast in the eastern Corn Belt, including the eastern half of Indiana, most of Michigan and Ohio
· Corn: CZ Up $.0050 @ $3.41; CH Up $.0050 $3.5075. The funds sold 8 K after a stellar export sales number
· SB: SX Up $.0075 @ $9.5925; SF Up $.0025 @ $9.65. Funds: sold 4 SB, 2 SBM, bot 2 SBO. Dec/Nov crush, $.75, -$.01; LY: $1.00
· Wheat: WZ Up $.01 @ $3.9675; WH Up $.01 @ $4.18. The funds sold 6 K yesterday
CORN/SORGHUM
· December 2016 corn futures closed at $3.40 ½ on Thursday. One year ago, December 2015 corn settled at $3.91 ¼
· T-storm Weather: A few systems move into central U.S. Oct. 12 forward, but lack of humidity limits rain in most areas
· ATI Research: U.S. corn export sales for 16/17 for the week ending Sep. 29 of 81.1 mbu were well above the trade range of 43-55, and nearly 4X last year’s total of 20.5. Sorghum sales for 16/17 were 197,000 bu. vs. 161,000 last year
· Conab, Brazil’s crop agency, projecting Brazil corn production in 2016/17 will increase 23.5% to 25.7% from 2015/16
· Consultant: In the major Argentina corn producing province of Cordoba, not much planting has occurred as producers wait for additional moisture. Corn planting in Argentina is a long, drawn out affair that will not conclude until January
SOYBEANS/WHEAT
· November 2016 soybean futures closed at $9.58 ½ Thursday. One year ago, November 2015 beans settled at $8.81 ¼
· ATI Research: U.S. soybean export sales for 16/17 of 80.1 mbu were well above the trade range of 44-55 & 47.2 in ‘15
· T-storm Weather: After the current system passes, generally dry and unseasonably mild weather begin in most Midwest soybean areas by Saturday and continue for at least 5-7 days, likely opening a large-scale harvesting window
· ATI Research: U.S. wheat export sales for 16/17 of 13.9 mbu were below trade range of 15-22 but above 10.6 last year
· T-storm Weather: Light rains affect Argentina wheat over next 7-10 days, while drying aids wettest areas of Australia
ENERGY
· Mostly lower: CLX16, -$.21 @ $50.23; EBZ, -$0.33; EBZ-CLX, $1.95, -$.12; RBX, -.0129; NGX, +.006; HOX, -$.0114
· Cash ethanol markets were mostly lower on Thursday: Chicago down 1 1/8; New York and Dallas off 2 ½; Gulf eased 1; Tampa dipped 3 ½; but LA was unchanged at $1.68 ½ per gallon
· Ethanol RINs weaker: 2014’s off 5/8 at 89 ½-90 ¼; 2015’s eased 5/8 to 89 ½-90 ¼; and 2016’s down 5/8 to 89 ¼-90
· The Nov RBOB/Nov ethanol inverse dropped declined $.0572 cents to-0.0520/gallon on Thursday
LIVESTOCK/POULTRY    
· Choice boxed beef values were 62-cents lower on Thursday at $183.48, and are down $6.29 vs. last year
· Moderate to active cash cattle trading developed on Thu. in the South at $102, which was $1-$2 lower vs. last week
· USDA mandatory pork carcass cutout increased 26-cents on Thursday to $71.82, but is $1.33 lower vs. a week ago
· CME Lean Hog Index was down $0.49 on Thu. at $54.36. October futures $2.15 higher but are $3.985 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather