HIGHLIGHTS
· Market Trend—Corn, ¾ to 1 Higher; Soybeans, Mixed; Wheat, Down 3-4
· Global equity markets are higher this morning, in anticipation that our duly elected in Washington will reach a deal to avoid defaulting on U.S. debt obligations. Asian markets reported gains of from .3% for the Nikkei to 1.1% for Taiwan with the Shanghai Composite taking issue and closing down .2%. Early activity in Europe has the 3 major bourses up ½% (DAX, CAC-40) to .7% (FTSE 100). Dow futures are currently 32 higher; the Nasdaq is showing a 8 ¼ point better start and the S&P is 2 ½ higher. Gold is on the defensive, down $23.60; energies are mixed and the $ Index is up nearly a ½ point at 80.745.
· T-storm Weather: A storm system causes widespread rain to occur across the heart of the Corn Belt today, but heavy amounts do not occur as the system dissipates; the lack of rain prevents excessive wetness from developing for SRW wheat planting in Indiana, Kentucky, and Ohio where 34%, 48%, and 65% of production had received at least 28 days of rain over the last 14 days as of Sunday morning. Colder weather follows in all areas as Arctic air spills southward, thereby officially ending the growing season for the northwest two-thirds of corn and soybeans later this week and/or weekend.
· Dec Corn Up $.0050 at $4.3750; Mar Corn Up $.01 at $4.5075. Funds buy 3 K to start the week
· Nov Soybeans Down $.0150 at $12.7150; Jan SB Down $.0125 at $12.7050. The funds buy 3 K SB, 3 K SBM and 1 K SBO yesterday
· Dec Wheat Down $.0350 at $6.89; Mar Wheat Down $.0350 at $6.9825. Funds went home even yesterday
CORN/SORGHUM
· CZ3 corn futures traded at $4.32 Monday, which is the lowest price since Aug. 27, 2010
· Corn yields in Illinois continue to run well above expectations, suggesting the possibility of an increase in the statewide yield from the most recent USDA estimate of 165 bpa
· Corn harvest delays linked to rain look to be more pronounced in western Corn Belt as the system dissipates moving east; e.g.--T-storm Weather forecasting rainfall through Oct. 19 under 100% for Illinois, Indiana, Ohio & Michigan
· T-storm Weather: Despite weekend rainfall in driest corn areas of Argentina, significant rainfall deficits persist
· Release of the export inspections report was delayed Monday due to the Columbus Day holiday. Corn, 24.1 needed; 25.3 last week. Milo—3.0 needed; 2.0 last week.
SOYBEANS/WHEAT
· NOPA crush report at 11:00 CDT: Average trade guess for September soybean crush is 107.1mbu (range from 103.0-111.0) and vs. 119.7 last year. Average guess for soyoil stocks is 1.454 bil lbs (range 1.285-1.600) & vs. 2.043 last year
· Export Inspections: Soybeans, 27.7 needed; 30.6 last week
· T-storm Weather: Soybean producing areas of Center-West Brazil would benefit from more rain, but not all regions were dry in recent weeks
· Export Inspections: Wheat, 16.9 needed; 29.8 last week
· T-storm Weather: Additional drying is needed for SRW wheat planting in Indiana, Ohio and Kentucky
ENERGY
· The energies are mixed this morning: QCLX13, -$0.65 at $101.76; QRBX, -$0.0049; QNGX, +$.029 and QHOX, +$.030
· Cash ethanol markets were mixed on Monday: Chicago was 3 lower; Gulf was ¾ higher; NY was 1 ½ higher; Dallas was up 4 ¼; Tampa was 1 ¼ higher; and LA increased 2 ½ to $2.22 per gallon
· RINs, rebounding a bit: 2012’s up 4 ½ to 30-33; 2013’s 3 higher to 31-33; and 2014’s up 2 at 30-33
· The November RBOB/ethanol spread narrowed $.0263 to $.9238/gallon on Monday: inventories, mandate concerns
LIVESTOCK/POULTRY    
· Live-cattle futures ended higher Mon., supported by steady-to-stronger demand for cattle in cash trade on Fri.
· Feeder-cattle futures eased slightly on Monday after a climb to consecutive all-time record highs in recent sessions
· Lean-hog futures ended mostly lower Mon. as weekly slaughter & carcass weights are thought to be currently rising
Sources: Bloomberg, Dow Jones, AP, T-storm Weather