HIGHLIGHTS
· Market Trend—Corn, 1 Higher; Soybeans, 0 deliveries, 3 Higher; Wheat, 2-3 Higher
· Major overseas market indices are mostly weaker this morning. Europe awaits the Central Bank’s monthly policy statement later in the session, thinking a rate cut may be in the offing. Twitter IPOs at $26 per share, slightly better than the $23-$25 range expected. U.S. futures are lower with S&P off 2 ½; the Dow down 11 and the Nasdaq, 5 ½ lower. Outside markets show gold $3.90 cheaper at $1,313.90/oz; energies are mixed and the $ Index is .046 higher at 80.605
· Mainly dry and seasonable to cool weather are likely for Midwest corn and soybeans short-term although light rain and snow showers affect North Dakota and far northern areas of the Corn Belt Friday. Next chance for significant rain or snow is likely at least one week away, & primarily in the Corn Belt; most important points: 1) a significant event is not immediately foreseen in wettest cattle areas of the Plains, & 2) conditions for corn harvesting slowly improve until the next event arrives
· Dec Corn Up $.01 at $4.2225; Mar Corn Up $.01 at $4.3250. The funds sold 4 KWednesday
· Nov SB Up $.03 at $12.66; Jan SB Up $.0175 at $12.5675. Funds bought 2 K SB,2 K SBM and were even on SBO
· Dec Wheat Up $.0275 at $6.56; Mar Wheat Up $.0225 at $6.65. Funds sold an estimated 2 K yesterday
CORN/SORGHUM
· December 2013 corn futures traded to $4.20 ¾ on Wednesday, the lowest price for the contract since Aug. 12, 2010
· Export Sales report released at 7:30 AM CST. Trade expects 39 to 51mbu corn. Watching to see if China buys
· Private forecaster projecting a 14.5 MMT decline (13%) in aggregate South American corn production in 13/14
· ATI Research: Updated U.S. corn export forecast is 1.305Bbu. A sharp pick-up in U.S. shipments is projected from March, 2014 forward in response to the anticipated reduction in South American corn production
· Weekly ethanol production slowed 9 thous barrels per day last week to 902 thous, although that’s still up 9% vs. 2012
· T-storm Weather: Dryness is not a concern across Argentina because most areas were near to wetter-than-usual over the last 30 days, especially in concentrated corn regions of Cordoba and Santa Fe. More rain likely this weekend
SOYBEANS/WHEAT
· Export Sales: Trade expects 29 to 40mbu soybeans; soymeal, 190-250 K MT; soyoil, 20-60 KMT
· Private forecaster projecting a 14.4 MMT increase (10%) in aggregate South American soybean production in 13/14
· T-storm Weather: Dryness concerns do not exist for ongoing soybean planting and growth in Brazil because most areas were near to wetter-than-usual over the last 30 days
· Export Sales: Trade expects 13 to 18mbu for all wheat. Watching to see if active sales of HRW to Brazil continue
· T-storm Weather: While rain is forecast this weekend in Argentina, amounts across key wheat areas of Buenos Aires are likely to be less to much less than in corn and soybean regions. Only a brief disruption to wheat harvest is likely
· Average trade estimate for world wheat ending stocks in Friday’s USDA report is 175.5 MMT vs. 176.3 in September
ENERGY
· Energy markets are mixed with QCLZ13,+$0.25 at $95.05; QRBZ, -$0.0144; QNGZ, +$.069 and QHOZ, -$.0188
· Slide continued in most cash ethanol markets on Wednesday: Chicago and Gulf were off 1 ½; Dallas was 3 weaker; Tampa was 1 ¼ lower; NY was down 2 ½; and LA was unchanged at $1.89 ½ per gallon
· Firmer trend in RINs: 2012’s up 1 at 28-29; 2013’s were also a penny firmer at 29-30; & 2014’s up 1 ½ to 30-31
· The December RBOB/December ethanol spread fell 12 ½ cents to settle at $.9410
LIVESTOCK/POULTRY    
· Choice boxed beef values lost 89-cents yesterday and have declined $1.00 over the last two days
· The USDA pork carcass cutout value fell 50-cents yesterday and has lost $1.58 over the last two days
· Cool fall weather, new crop corn and lower feed costs all likely contributed to record heavy Ia/So Min hog weighs LW
· Broiler egg set last week was up 5.9% from last year and average egg set for the last four weeks is 4.8% larger
Sources: Bloomberg, Dow Jones, AP, T-storm Weather