HIGHLIGHTS
· Market Trend: Corn, 2 Lower; Soybeans, 4-8 Lower; Wheat, 3-4 Lower
· Improving U.S. home builder sentiment and at least some sort of agreement related to the human aid package/convey headed to the Ukraine provided support Tuesday to overseas markets. Asia realized solid gains, led by a .83% increase in the Nikkei; the Hang Seng closed up .67% and Shanghai was .26% to the plus side. Mid-day trade in Europe finds the DAX up nearly a full percentage point; the CAC-40 is .47% higher and the FTSE, up .37%. U.S. futures for the major indices point to a higher start as well: Dow, +38; S&P, +3 and the NAS, +7 ¾. Home Depot’s Q2 profit climbed 14%, beating market ideas and should further contribute to a positive opening. Outside markets: $ Index, +.104; gold, +$1.10; energies, all higher
· T-Storm Weather: Temperatures gradually warm into the weekend as the warmest period of the corn and growing season unfolds when maximums reach the mid-80s to mid-90s for two to three days. Warmth occurs in advance of a strong system that ultimately pulls sharply cooler weather to the south Sunday-Monday, preventing heat from lasting. The fluctuating edge of warmth combines with waves of energy to trigger thunderstorm clusters in varying areas through the period
· Sep Corn Down $.0175 at $3.59; December Down $.02 at $3.6950. The funds sold 6 K to open the week
· Sep Soybeans Down $.0375 at $11.1175; Nov Down $.06 at $10.5150. Funds bought 3 K SB yesterday; 1 K each of SBM and SBO
· Sep Wheat Down $.0275 at $5.3975; December Down $.0375 at $5.5050. Fund selling on Mondaytotaled 6 K
CORN/SORGHUM
· ATI Research: USDA pegs U.S. Good/Excellent corn ratings down a point to 72%. Updated ATI crop size down 18mbu from last week to 14.231Bbu; yield at 169.7bpa
· ATI Research: Updated corn balance sheet--13/14 carryout down 15mbu to 1.129Bbu; 14/15 dn 33 mil to 1.861Bbu
· USDA Crop Progress: U.S. corn in dent stage at 22% compared to 10% last year and the 5-year avg. of 27%
· T-storm Weather: Following this week’s warm-up, several days of unseasonable coolness are forecast from Aug. 24-27 before temperatures return to near-average levels
SOYBEANS/WHEAT
· ATI Research: USDA Good/Excellent U.S. soybean ratings up a point to 71%; crop size up 28 million to 3.905Bbu
· ATI Research: Updated soybean balance sheet--13/14 carryout steady at 123mbu; 14/15 up 28 million to 523mbu
· T-storm Weather: Widespread coverage of near- and above-average rain of 1.00”-2.00” expected over the next week
· ATI Research: USDA Good/Excellent U.S. spring wheat dn 2 points to 68%; adjusted HRS crop est dn 1 at 559mbu
· ATI Research: Updated SRW wheat balance sheet--14/15 carryout at 190mbu, which would be 2ndhighest on record
· Heavy weekend rain for Northern New South Wales (NSW) Australia wheat, but parts of southern NSW were missed
ENERGY
· Futures are higher: QCLU14, +$0.34 to $96.75; QRBU,+$0.0190; QNGU, +$.028; and QHOU, +$.0128
· A steady to lower tone was seen in cash ethanol markets to begin the week: Chicago and Gulf down 1 ½; Tampa and Dallas off ½; New York eased 3; and LA was unchanged at $2.44 per gallon
· RINs slightly firmer: 2012’s up 3/8 at 49 ¾-50 ½; 2013’s gained ½ to 49 ¾-50 ¾; and 2014’s 5/8 higher at 49 ¾-51
· The October RBOB/Ethanol spread eased nearly a penny to $.5307/gallon
LIVESTOCK/POULTRY ;
· ; Choice boxed beef values eased 44-cents yesterday and have lost $7.31 over the last seven trading days
· The USDA 5-area weekly average steer price for last week was $154.92, down $5.00 from the week before
· The USDA pork carcass cutout value fell $1.36 yesterday and has declined $5.63 over the last two trading days
· CME Lean Hog Index down $1.66 to $113.04. October future up $0.15 to $95.10, but are $17.94 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather