HIGHLIGHTS
· MARKET TREND: CORN: CU, down; SOYBEANS: SQ, up 4; WHEAT: WU, down ¼; KWU, down ¼
· Most global markets are higher, awaiting private payroll processor ADP to report July U.S. employment data. The Nikkei closed up .46% and the Hang Seng recorded a similar gain, +.44%. Volatility remains the norm in Shanghia where theComposite lost 1.62% despite data showing July’s service sector expansion was the best in 11 months. Europe is higher at mid-day: FTSE, +.37%; CAC 40, +1.26% and the DAX, +1.33%. U.S. Pre-Market indicators have the DOW up 43; the S&P is 9 ½ to the plus side and the NAS, up 19. Sep crude is up $.29 per barrel; August gold is $4.70 cheaper at $1,086.00 and the $ Index, up .176 @ 98.200
· T-storm Weather: Waves of energy move across the central U.S. and interact with heat to the southwest and coolness to the northeast. It will take more time to fine-tune the forecast, but it remains most probable for seasonable temperatures to dominate through Monday. A warmer pattern begins early next week, but it will be difficult for sustained heat to envelop the central U.S. given the likelihood for waves of energy to ride the edge of warmth. These waves of energy are probable to trigger thunderstorms, likely resulting in widespread coverage of near-normal rainfall over the next two weeks
· Sep Corn Down $.0025 at $3.6850; Dec Down $.0050 at $3.7825. The funds bought 3 Kon Tuesday
· Aug SB Up $.04 at $9.80; Nov Up $.0475 at $9.5375. Funds: bought 3 K SB; 2 K SBM; even SBO. Dely: SBO, 936
· Sep Wheat Down $.0025 at $4.9325; Dec Up $.0025 at $5.0050. The funds sold 3 K yesterday
CORN/SORGHUM      
· T-storm Weather: While we recognize that rain has been limited the last 1-2 weeks, it is difficult to be too concerned with dryness when 94% of U.S. corn production received at least 2.00" of rain the last 30 days, with more forecast
· ATI Research: Near-term U.S. corn exports expected to avg. 3-5 million above 2014’s 4-week up-coming avg. of 37.4
· Crop consultant: The 2015 U.S. corn crop continues to be rated below last year’s crop, but above the long term average. There continue to be ideas that harvested acreage could be 500,000 acres less than the latest USDA est
· Ethanol margins: $0.24 per gallon--down vs. $0.29 last week and below $0.88last year. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· ATI Research: U.S. new-crop soybean export sales averaged 18 mbu per week the past month vs. the 5-year avg. of 27
· Crop consultant: Weather continues to be generally favorable for the U.S. soybean crop especially in the western Corn Belt where recent rains set the stage for a good start to August
· ATI Research: Year-to-date export sales of U.S. HRW wheat are the second lowest since at least the mid-1980s
· T-storm Weather: Heavy rain of 1.00”-3.00” is forecast across much of the Argentina wheat belt over the next 10 days
ENERGY
· Firmer: CLU15, +0.29, $46.03 EBU, +$0.40 EBU-CLU, +4.36, +-$.11, RBU, +$.0208; NGU, +$.008; HOU, +$.0086
· EIA estimates: crude, -1.5 (API: -2.4); Gasoline, -0.6 (-0.5); Distillates, +1.6 (+1.7)
· Slight gains were seen in most cash ethanol markets on Tuesday: Chicago up ¼; New York added ½; Gulf steady; Dallas and Tampa up 1 ½; and LA was 2 ½ higher at $1.66 per gallon
· Ethanol RINs were firmer: 2013’s up 3 ¼ at 40 ½-41 ½; 2014’s added 3 ½ to 41-42; & and 2015’s gained 3 3/8 to 41-42
· The Sep RBOB/Aug Ethanol spread gained a ½ cent to $.1952/gallon
LIVESTOCK/POULTRY ;
· Choice boxed beef values were 51-cents lower on Tuesday at $233.48 but are up $1.33 compared to a week ago
· Cash cattle trading was very quiet on Tuesday with asking prices in the South at $152-153
· On Tuesday, the USDA mandatory pork carcass cutout was up 82-cents to $88.12—highest level since Dec. 16, 2014
· CME Lean Hog Index was steady at $78.68. August futures gained $1.20 to $81.40 and are $2.72 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather