HIGHLIGHTS
· MARKET TREND: CORN: CZ, Down $.0075; SOYBEANS: SX, Down $.0375; WHEAT: WZ, Up $.0225; KWZ: Up $.0275
· Pent-up demand after a lengthy holiday closure boosted Shanghai 3% overnight with the rest of Asia bit more pensive ahead of the release of the Fed minutes. The Nikkie lost 1% and the Hang Seng closed .7% lower. Mid-day trading in Europe shows slight gains: CAC 40, +.02%; DAX, +.19%; FTSE, +.30%. U.S. pre-markets suggests a weak start to the day: DOW futures, -74; S&P, -8 3/4; NASDAQ, -19 ½. Outside markets have the $ Index off .300 at 95.28; energies are mostly lower and gold is $4.80 lower
· T-storm Weather: U.S. temperatures vary as cool fronts pass, but average above- to much-above-normal over the next 10 to 14 days as maximums often reach the 70s-80s, including some 90s from Nebraska south. Little to no rain occurs in most areas through the period, allowing corn / soybean harvesting and winter wheat planting to race forward. In South America, a series of cool fronts produce heavy to very-heavy rain across South Brazil, likely developing pockets of field flooding as 3.00" to 6.00" occurs in already saturated areas over the next 10 days; 1.50" to 3.00" is approximately normal for the period
· Dec Corn Down $.0075 at $3.95; Mar Down $.0125 at $4.05. The funds sold 4 K at mid-week
· Nov SB Down $.0375 at $8.8725; Jan Down $.0350 at $8.9150. Fund activity: bought 3 K SB, 2 K SBO and & 3 K SBM
· Dec Wheat Up $.0225 at $5.19; Mar Up $.0225 at $5.26. The funds sold 5 K on Wedesday
CORN/SORGHUM       ;
· Export Sales to be released at 7:30 AM CDT. Trade expects 22-30 mbu for 15/16 corn
· USDA WASDE on Oct. 9: Avg. trade guess U.S. corn carryout--15/16, 1.498 bbu (range of 1.130-1.730) & 1.592 in Sept.
· U.S. corn harvest for the week ending Oct. 11 was approx. 23% last year and the five-year average is approx. 43%
· ATI Research: The U.S. remained the high priced supplier of corn to the world export market in the latest week. Argentina maintained its place as the cheapest origin around the globe while Brazil was the next lowest-priced
· Ethanol grind: 950,000 barrels per day for week end Oct. 2—up 0.7% vs. last week and 5.4% higher vs. last year
SOYBEANS/WHEAT
· Export Sales to be released at 7:30 AM CDT. Trade expects 26-44 mbu for 15/16 soybeans; soymeal, -50 - +50 K MT old-crop, 100-300 K MT new-crop; soyoil, -10 - +10 K MT old-crop, 5-30 K MT new-crop
· USDA WASDE on Oct. 9: Avg. trade guess U.S. soybean carryout--15/16, 0.398 bbu (range 0.125-0.511), 0.450 in Sept.
· U.S. soybean harvest for the week ending Oct. 11 was approx. 37% last year and the five-year average is approx. 53%
· Export Sales to be released at 7:30 AM CDT. Trade expects 6-14 mbu for 15/16 all wheat
· USDA WASDE on Oct. 9: Avg. trade guess U.S. wheat carryout--15/16, 0.821 (range of 0.765-0.896) and 0.875 in Sept.
· U.S. winter wheat planting for week end Oct. 11 was approx. 66% last year and the five-year average is approx. 65%
ENERGY
· Mixed: CLX15, +$0.03, $47.84; EBX,+$0.10; EBX-CLX, $3.59, +$.07; RBX, -$.0066; NGX, -$.001; HOX, -$.0073
· A mostly weaker trend was evident in cash ethanol markets on Wednesday: Chicago down 2 3/8; New York off 2 ¼; Gulf gained 4; Tampa eased 1 ½; Dallas declined 1; and LA was 3 lower at $1.73 ½ per gallon
· Ethanol RINs firmed: 2013’s up ¼ to 33-34; 2014’s added ¼ to 33 ¾-34 ¾; & 2015’s gained ¼ to 33-34
· The Nov RBOB/Nov Ethanol inverse gained 2+ cents, increasing to -$.1850/gallon on Wednesday
LIVESTOCK/POULTRY </wbr>
· On Wednesday, choice boxed beef values eased 59-cents, and at $203.58 are down $5.04 vs. a week ago
· Cash cattle markets were not well tested on Wednesday, although some bids in Kansas were $118
· On Wednesday, USDA mandatory pork carcass cutout firmed 48-cents, and at $86.50 is $2.66 higher vs. last week
· CME Lean Hog Index up $0.54 at $74.29. October futures $0.225 higher at $73.825 but is $0.465 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather