HIGHLIGHTS

·         Market Trend—Corn, 3 to 4 Higher;  Soybeans, 5-6 Higher; Wheat, Up 9-10

·         China’s economic growth in the latest quarter rebounded from 7.5% to 7.8%, aided by government stimulus and improving prospects for reaching the target forecast.  Most Asian markets are higher with the Nikkei the lone exception, off .2%.  European markets are higher in early trading, led by a .3% gain in France’s CAC-40.  U.S. indicators look positive with Dow futures 20 higher; the Nasdaq up 14 ½ and the S&+, + 2 ¼. Gold is $5.80 lower; energies are mixed and the $ Index, off .09

·         Cooler-than-normal temperatures are seen across the Midwest over the next several days.  Limited rainfall is forecast today, which should promote harvest where field conditions permit.  Scattered and generally light rainfall is likely for Saturday across the northwest Corn Belt as well as the majority of the eastern Midwest.  Precip moves away from the Midwest on Sunday but cool temperatures persist.  Looking further ahead, below- to much-below-normal temps are forecast for the last half of October.  The NWS 8-14 day forecast is calling for below-normal precip for the Midwest the last full week of October

·         Dec Corn Up $.0325 at $4.4625; Mar Corn Up $.0350 at $4.59.     Funds were even on Thursday  

·         Nov Soybeans Up $.05 at $12.9825; Jan SB Up $.05 at $12.9450.  Fund bought 7 K SB; 6 K SBM and sold 3 K SBO

·         Dec Wheat Up $.0875 at $6.9475; Mar Wheat Up $.0850 at $7.0450.   Funds bought 3 K yesterday

CORN/SORGHUM

·         NOTE: USDA decided to cancel October Crop Production and WASDE reports.  November 8 is next scheduled release

·         Word of additional purchases of U.S. corn by China helped supported prices on Thursday

·         Updated NWS forecast shows equal chance of above- or below-normal precip for November for the entire Corn Belt

·         Corn yields in northern Illinois are record high in many areas

·         University of Illinois agronomist this week noted that soil where corn was produced this year have been “wrung dry” in the top 2 or 3 feet as they “have had to provide the water (this summer) that failed to fall from the sky.”

SOYBEANS/WHEAT

·         Market continues to send strong signals for increased soybean acreage in South American this fall

·         Soybean yields continue to generally run better-than-expected, although some areas in Iowa are closer to average

·         There are ideas that China purchased a substantial quantity of U.S. soybeans in recent weeks.  The USDA is expected to resume releasing its Export Sales report, although no date for its resumption has been provided

·         Indications of as much as a 10-15% reduction in soft red winter wheat seedings vs. a year ago in eastern Corn Belt

·         Dry weather and the threat of frost continues to threaten Argentina’s wheat crop

ENERGY

·         The energy markets are mixed: QCLX13, +$0.50 at $101.17; QRBX, +$0.0176; QNGX, -$.052 and QHOX, +$.0272

·         Cash ethanol markets were mostly weaker on Thursday: Chicago and Gulf were 2 lower; NY was 3 ½ lower; Dallas was off ¾; Tampa up ½; and LA decreased  ½ to $2.31 ½ per gallon

·         RINs, lost ground: 2012’s down 2 ¼ to 29 ½-33; 2013’s 1 ¾ weaker to 31-34 ½; and 2014’s off 1 ½ at 31 ½-34 ½

·         The November RBOB/ethanol spread tightened up $.0372 to $.8569 per gallon on Thursday

LIVESTOCK/POULTRY                                    ​                       <​/wbr>

·         Choice boxed beef values were $196.03 yesterday, up $2.78 from 9/30 (the last day before the gov’t shutdown)

·         Cash cattle continued to trade yesterday at mostly $129, steady with the day before and up $1 from last week

·         The USDA pork carcass cutout value was $95.26 yesterday, down $6.21 from September 30

·         The USDA’s Iowa/Minnesota average cash lean hog price was $91.37, down $1.34 from the end of September.

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