HIGHLIGHTS
· Market Trend: Corn, 1-2 Lower; Soybeans, SU, +3; SX, Down 4; Wheat, 2-3 Higher
· Asian markets took yesterday’s positive U.S. economic data as a precursor for an eventual Fed rate hike as well as a firmer dollar. This helped edge the Nikkei .03% higher and the Hang Seng, +.15% while Shanghai gave up .23% of its value. Europe is trading lower near the mid-day hour—the FTSE is down .32%; the DAX and CAC-40 are both off .34%. U .S. stock index futures suggest a mixed start: the Dow is 2 lower and the S&P, off 1; the NAS, on the other hand, is showing a modest ½ point gain. Traders are hoping this afternoon’s release of the Fed minutes might hint at possible rate hike timing. Outside markets: $ Index, +1/4 point at 82.15; energy futures are mostly higher and gold is losing some of its glitter, down $4.10 at $1,291.10/oz
· T-Storm Weather: A strong system in the Pacific Northwest pulls very warm to hot weather through the central U.S. within today-Monday, resulting in a short-duration heat wave and the warmest period of the corn and soybean growing season; widespread maximums in the 90s are expected for around three days with 100s generally southwest of key areas. A cooler pattern follows. The best chances for rain in driest areas of the Corn Belt are tonight and Thursday, then mostly likely within Saturday-Monday
· Sep Corn Down $.0125 at $3.6125; December Down $.0150 at $3.7075. The funds ended Tuesdayeven
· Sep Soybeans Up $.03 at $11.2325; Nov Down $.04 at $10.4875. Funds sell 4 K SB, 3 K SBM, 4 K SBO
· Sep Wheat Up $.03 at $5.49; December Up $.0275 at $5.6125. The funds bought 4 K on Tuesday
CORN/SORGHUM
· T-storm Weather: August 2014 has been slightly wetter and cooler than average across the U.S. Corn Belt
· ATI Research: Model forecasts short-term U.S. corn exports of 37.0mbu per week
· Private crop consultant notes that any frost in northwestern Corn Belt prior to about September 20would be a concern for the later-developing corn crop
· Ethanol margins: $0.88 per gallon vs. $0.83 last week and sharply above $0.35 in 2013. EIA report at9:30 AM CDT
SOYBEANS/WHEAT
· ATI Research: World soybean prices continue to show the U.S. as the cheapest origin. The 14/15 export sales total of 665mbu (vs. 589 last year) combined with the 75 million in unshipped old-crop now has buying on record pace
· Private crop consultant: Forecast for warmer weather this week more of a concern for U.S. soybean crop than corn
· ATI Research: Wheat export trends by class short-term; HRW, 7-10mbu per week; SRW, 2-4; and HRS, 4-6
· Above-normal precip and below-normal temps next week for U.S. Northern Plains may slow spring wheat harvest
ENERGY
· Futures are mostly higher: QCLU14, +$1.32 to $95.80; QRBU,+$0.0240; QNGU, -$.043; and QHOU, +$.0097
· Cash ethanol markets added to losses on Tuesday: Chicago down 1 ½; Gulf off a penny; Tampa and New York slid 4 ½; Dallas declined 4; and LA was 9 lower at $2.35 per gallon
· EIA estimates (API): Crude, -0.9 mb (-1.4); gasoline, -1.3 (-2.1); distillates, -0.7 (-0.6)
· Weaker trend in RINs: 2012’s dn 5/8 at 49-50; 2013’s off ½ to 49 ½-50; and 2014’s 5/8 lower at 49 ½-50
· The September RBOB/Ethanol spread widened over 5 cents to $.5764/gallon
LIVESTOCK/POULTRY  
· Choice boxed beef values declined $2.19 yesterday and have lost $9.50 over the last eight trading days
· Cash cattle are quiet with feedyards asking $157 to $158, but no packer bid. Cattle traded last week at mostly $155
· The USDA pork carcass cutout value fell $1.14 yesterday and has declined $6.77 over the last three trading days
· CME Lean Hog Index down $1.89 to $111.15. Oct future down $0.275 to $94.825 and are $16.325 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather