HIGHLIGHTS

·         Market Trend—Corn, ½ to 2 Higher; Soybeans, 5-6 Higher; Wheat, 3-4 Higher.   

·         “Tentative” is the way the wire services are describing global equity markets ahead of this morning’s U.S. jobs report. Analysts expect a 177 K gain with unemployment holding at 7.4%.  Encouraging data has already been out this week:  service companies are stepping up the hiring pace; car buying is at a level not seen since Dec 2007 & Aug factory output expanded at the fastest rate in over 2 years. A solid jobs # could be negative, leading the Fed to scale back its bond buying activities.   EU markets are little changed; profit-taking pushed the Nikkei 1.5% lower; the Hang Seng edged .1% higher and Shanghai closed up .8%.  S&P futures are ¼ point higher; the Nasdaq looks to start up 4 but Dow futures are 6 points in the red.  Outside markets have the $ Index off .038 at 82.63; Oct crude is 34-35 cents dearer and gold is down $7.

·         Rainfall the past 24 hours was limited to very light(<.10) amounts in E NE, W IA, SE SD, C and NE IL.  Models out late yesterday saw some reduction in the amounts expected for the N US Plains and S Canadian Prairies.  The 6-10 day outlook is a little wetter for the ECB while the NW Plains may get scattered amounts the next 10 days.  IA now 63% in a moderate to severe drought with most of the state receiving only 5-25% of normal August moisture.

·         Sep Corn Up $.0050 at $4.90; Dec Corn Up $.0225 at $4.6325. Funds sold an estimated 10 K on Thursday

·         Sep Soybeans Up $.0525 at $14.2825; Nov SB Up $.0550 at $13.73.  Funds bought 5 K SB, 3 K SBM and sold 3 K SBO

·         Dec Wheat Up $.0375 at $6.44; Mar Wheat Up $.0375 at $6.57.  Funds sold 5 K yesterday 

 

CORN/SORGHUM

·         Informa production estimates to be released during the session today

·         Export Sales:  trade expects 4 mbu old crop coron was cancelled with new crop sales in the 18-26 mbu range

·         Early, southern-oriented yields continue to impress

·         More export competition as ProZerno sees Russian exports rising from 1.9 MMT TY to 3.0 in 13/14 (USDA:  2.0); raises production estimate from 9.7 MMT in August to between 9.8-10.0

SOYBEANS/WHEAT

·         Soybean Export Sales:  cancellations of 2-4 mbu old crop expected; new crop pegged at 20-29 mbu

·         Soybean Product Export Sales:  trade expects 25-75 K MT old crop meal and 100-175 new crop. Soybean oil sales estimated at 0-20 K MT for 12/13 and 0-5 K for 13/14 delivery

·         Wheat Export Sales:  16-22 expected against 13.6/week needed

·         Results from the HRS/DNS harvest indicates good yields but protein levels are running a little light

ENERGY

·         Energy markets are mixed:  QCLV13, up $.25 at $108.61;  QRBV, -.0013; QNGV,+$.017 and QHOV, +$.0005

·         Slight drop in ETOH output 819 kbpd; stx fall to 16.2 mln bbls as plants take down-time

·         Another mixed day in the cash ethanol markets as the inverse strengthens:  private sources reported Dallas/Tampa were 4 ½ lower; LA gained 1 ½ cents; NY was 2 ½ higher to $2.65; Chicago gained nearly 13 cents and the Gulf was pegged 18 cents higher 

·         RINs: 2012’s slipped 2 cents to a 68-70 cent range; 2013’s edged 1 ½ cents lower to 70-71 and 2014’s were 2 lower to a range of 69-72 cents

·         The spread between October RBOB/ethanol narrowed nearly 3 cents to $.9510 per gallon

LIVESTOCK/POULTRY                                     &n​bsp;                     

·         After gaining 89-cents over the previous two days, Choice boxed beef values eased 70-cents yesterday

·         Cash cattle are quiet with feedyards asking $125 to $126 while packers bid $121.  Cattle traded LW at mostly $123

·         After firming 56-cents during the previous two days, the USDA pork carcass cutout value eased 36-cents yesterday

·         The USDA’s Iowa/Minnesota average cash lean hog price eased 44-cents yesterday to $89.90

Sources: Bloomberg, Dow Jones, AP, T-storm Weather