HIGHLIGHTS
· MARKET TREND: CORN: CU, Up $.02; SOYBEANS: SU, Up $.0650; WHEAT: WU, Up $.01; KWU: Up $.0075
· Global equity markets are mixed as the uncertainties associated with China and the developing countries linger. Shanghai’s volatility remains—up 4.9% overnight; the Nikkei gained 3.03% while the Hang Seng eased 1.04%. Europe is not faring quite as well: the FTSE is off .14%; the CAC 40, down .49% and the DAX, .80% lower. Futures do not bode well for the U.S.: DOW, 118 lower; S&P, 14.75 in the red and the NAS, off nearly 30 points. Traders will be scrutinizing the U of MI’s August consumer confidence #’s as well as personal income/spending data releases. External: energies are mostly lower; Sep gold is $3.30 firmer at $1,125.70 and the $ Index is down .022 at 95.63
· T-storm Weather: An upper-level system snakes across the Corn Belt through Saturday. A swath of heavy rain falls within the northwest half of the Corn Belt today in/near Iowa with a low to moderate chance for at least 0.50" across the northwest half of Illinois, and parts of Indiana and Michigan. Sharply warmer weather follows the exit of the system, and warmth dominates for around 7 to 10 days as an unusually warm first week of September unfolds. Tropical Storm Erika is and will remain a threat to the Southeast early next week, though significant rainfall is not expected in key corn and soybean areas from this event
· Sep Corn Up $.02 at $3.6575; Dec Up $.02 at $3.77. Fund buying on Thursday totaled 4 K
· Sep SB Up $.0650 at $8.9275; Nov Up $.0525 at $8.8425. The funds bought 5 K SB, 1 K SBM and 4 K SBO
· Sep Wheat Up $.01 at $4.8525; Dec Up $.0150 at $4.9125. The funds sold an estimated 2 K yesterday
CORN/SORGHUM       ;    
· T-storm Weather: August is probable to rank around #14 coolest since 1960 with near-normal rain across Corn Belt
· December 2015 corn futures closed at $3.75 on Thursday—one year ago, December 2014 corn settled at $3.69 ¼
· ATI Research: Year-to-date new-crop U.S. corn export sales of 261 mbu as of August 20 are down 33% from last year, and are the lowest total for this time of year since there were 198 million on the books in the summer of 2005
· Year-to-date 14/15 U.S. sorghum export sales: 336.9 mbu (96.2% of USDA est). Outstanding sales: 22 mbu v. 23 in ‘14
SOYBEANS/WHEAT
· November 2015 soybean futures closed at $8.79 Thurs.—one year ago, November 2014 futures settled at $10.28 ¾
· ATI Research: Combined U.S. old/new-crop unshipped soybean export sales to China/Unknown down 45% v. 2014
· T-storm Weather: After a period of warm temps, seasonably-cooler and wetter weather is forecast for the following week (beginning within Sep. 6-8) as autumnal coolness assembling in Canada forces a cool front to drop southward
· CBT September 2015 wheat futures closed at $4.84 ¼ Thur.—one year ago, September 2014 wheat settled at $5.56 ½
· ATI Research: U.S. SRW year-to-date export sales of 64 mbu are down 21% vs. last year & 27% below the 5-year avg.
ENERGY
· Weaker: CLV15, -0.14, $42.42; EBV,-$0.19; EBV-CLV, $4.96, -$.04, RBV, -$.013; NGV, +$.030; HOV, 0$.0004
· A steady to firmer trend was seen in cash ethanol markets on Thursday: Chicago up 1; New York steady; Gulf added ¾; Dallas and Tampa steady; and LA was ¾ higher at $1.63 per gallon
· Ethanol RINs were mixed: 2013’s up 1/8 to 36 ½-37 ½; 2014’s down 1 to 37 ½-38 ½; & 2015’s added 1/8 to 36 ½-37 ½
· The Sep RBOB/Sep Ethanol spread gained nearly 9 cents, going from -$.0610 to +$.0288, premium RBOB
LIVESTOCK/POULTRY     ;
· Choice boxed beef values were 3-cents lower on Thursday, and at $244.21 are down $2.25 vs. last week
· Dressed steer weight for week end Aug. 15: 900 lbs, up 5 pounds v. last week, 887.25 for 4-week avg. & 879 last year
· On Thursday, USDA mandatory pork carcass cutout was $1.14 lower, and at $84.27 is down $2.86 vs. a week ago
· CME Lean Hog Index down $0.11 at $78.68. October futures up $0.05 at $67.05 but are $11.63 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather