HIGHLIGHTS
· MARKET TREND: CORN: CU, Up 2 ¾; SOYBEANS: SQ, Down 3 ½; WHEAT: WU, Up 2; KWU, Up 1
· The devalued Chinese yuan and global demand concerns continue to send tremors through the equity markets. The Hang Seng led Asian markets lower, falling 2.38%; the Nikkie lost 1.58% in value and Shanghai closed down 1.03%. Europe is not faring well: CAC 40 is 2.33% lower; the DAX is off 2.15% and the FTSE is 1.18% lower. And today does not appear to bode well for Wall Street, judging by the pre-markets: DOW futures, 133 lower; S&P, 16 ½ to the downside and the NAS, off 35.5. The $ Index is trading 96.525,down .825; energy is more expensive and gold is $9.10 to the plus side at $1,116.70
· T-storm Weather: Coolness breaks over the next few days as a multi-day period of very warm to hot weather affects the western third to half of corn and soybeans. Mainly dry weather occurs through at least Sunday as cool surface-level high pressure initially suppress rainfall, and then hot upper-level high pressure blocks energy from moving eastward. A cool front likely breaks warmth for several days beginning Sunday or Monday (Aug. 16-17), initiating a few thunderstorms in / near the central and northern Plains. Better rain chances most likely follow in central and northern areas next week
· Sep Corn Up $.0275 at $3.7925; Dec Up $.0250 at $3.90. The funds sold 15 K on Tuesday, overbought & China news
· Aug SB Down $.0350 at $10.1050; Nov Down $.0350 at $9.68. Funds: sold 10 K SB; 7 K SBM; 5 K SBO. Dely: SBO, 117
· Sep Wheat Up $.02 at $5.0925; Dec Up $.0225 at $5.1450. The funds sold 6 K yesterday
CORN/SORGHUM           ;
·   USDA WASDE at 11:00 am CDT: Avg. guess for 2015 U.S. corn crop: 13.332 bbu (range 13.098-13.660) & 13.530 in July
· USDA WASDE: Avg. trade guess for U.S. corn carryout--14/15, 1.783 bbu (1.779 in July); 15/16, 1.449 (1.599)
· T-storm Weather: Aug. 20-24 forecast very difficult to assess; a seasonable or warm pattern more probable than cool
· ATI Research: Doubtful that fall of 2015 will see U.S. corn exports match last year’s 408 mbu total; current bias is 365
· Ethanol margins: $0.12 per gallon--down vs. $0.24 last week and below $0.93 last year. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· USDA WASDE: Avg. trade guess for 2015 U.S. soybean crop: 3.742 bbu (range 3.570-3.885) & 3.885 in July
· USDA WASDE: Avg. trade guess for U.S. soybean carryout--14/15, 247 mbu (255 in July); 15/16, 322 (425)
· ATI Research: U.S. soybean exports during September-November estimated at 650 mbu, down from 824 last fall
· Crop consultant: Potential disease problems for the U.S. soybean crop include sudden death syndrome & white mold
· USDA WASDE: Avg. trade guess for 2015 U.S. all wheat crop: 2.159 bbu (range 2.075-2.210) & 2.148 in July
· USDA WASDE: Avg. trade guess for U.S. all wheat carryout--15/16, 869 mbu (842 in July)
ENERGY
· HIgher: CLU15, +0.78, $43.86; EBU,+$0.55; EBU-CLU, +5.90, -$.20, RBU, +$.0264; NGU, +$.035; HOU, +$.02400
· EIA estimates: crude, -2.1 (API: -0.8); Gasoline, -0.8 (+0.1); Distillates, +1.0 (+2.2)
· Cash ethanol markets were weaker on Tuesday: Chicago and Dallas down 3; New York eased 3 ¾; Gulf off 3 ½; Tampa slipped 1; andLA was 2 lower at $1.64 per gallon
· Ethanol RINs steady to lower: 2013’s down 3/8 to 38 ¾-39 ½; 2014’s unch at 39 ½-40; & 2015’s off ½ to 38 ¾-39 ¼
· The Sep RBOB/Sep Ethanol spread widened $.0237 per gallon to $.2307 on Tuesday
LIVESTOCK/POULTRY     ;
· ; Choice boxed beef values increased $2.41 on Tuesday, and at $240.93 are up $7.45 vs. last week
· Cash cattle trading was very slow on Tuesday with asking prices in the South at $153
· On Tuesday, USDA mandatory pork carcass cutout was 73-cents higher, and at $90.26 is up $2.14 vs. a week ago
· CME Lean Hog Index down $0.11 at $78.79. August futures up $0.075 to $76.725 but are $2.065 below the index
· Sources: Bloomberg, Dow Jones, AP, T-storm Weather