HIGHLIGHTS
· MARKET TREND: CORN: CZ Down $.0275; SOYBEANS: SX, Down $.0475; WHEAT: WZ, Up $.0175; KWZ: Up $.01
· Asia did not bode well for the 1st of September. China’s official PMI slipped to 49.7 in August, signaling more evidence of contraction in the manufacturing sector. This contributed to a 3.8% decline in the Nikkei; Shanghai closed 1.3% lower and the Hang Seng was down 2.2%. Europe is continuing the trend: mid-day finds the DAX off 2.2%; FTSE, -2.0% and the CAC 40, -1.9%. Futures suggest Wall Street will do little for 401-Ks today: DOW, 325 points in the red; the NAS, -94 and the S&P 500, 40 ½ points lower. Happy Tuesday. Outside markets: Gold, +$9.50; $ Index, off ¼ point at 95.59; energies are mostly weaker with Oct crude $1.09/barrel cheaper at $48.09
· T-storm Weather: A large area of upper-level high pressure keeps U.S. corn and soybeans warmer than normal into early next week. Mainly dry weather accompanies warmth until a cool front passes within Saturday-Monday; best rain chances in western corn / soybean areas, as well as the HRW wheat belt. Rain would be most ideal further to the east given that portions of the eastern and southern Corn Belt account for the primary reason that around 30% of U.S. soybean (and corn) production was drier than normal over the last 30 days. A seasonably cooler and drier pattern follows next week
· Sep Corn Down $.0275 at $3.1 Dec Down $.0275 at $3.7250. The funds bought 1 K on Monday. Dely: 477
· Sep SB Down $.0625 at $8.9125; Nov Down $.0450 at $8.83. Funds: bought 1 K SB, sold 1 K SBM; even SBO. Dely: SBO, 475
· Sep Wheat Up $.02 at $4.8450; Dec Up $.0175 at $4.8050. The funds were evenMonday. Dely: 1 HRW; 27 SRW
CORN/SORGHUM   ;   </wbr>
· ATI Research: U.S. corn balance sheet; 14/15 carryout down 1 mbu to 1.755 bbu due to increase in ethanol/FSI; 15/16 down 17 to 1.560 bbu as slightly smaller crop offsets reduced carryin
· ATI Research: U.S. sorghum balance sheet; 14/15 carryout down 3 at 19 mbu; 15/16 down 29 mbu to 66 million due to smaller carryin and increase in FSI use
· USDA Crop Progress--Good/Excellent corn crop ratings decline one point to 68% with ATI crop estimate at 13.505 bbu
· USDA Crop Progress, corn dent: 60%, which is above last year’s 50% and equal to the 5-year average
SOYBEANS/WHEAT
· ATI Research: U.S. soybean balance sheet; 14/15 carryout steady at 221 mbu; 15/16 ending stocks also unchanged at 389 mbu; Good/Excellent soybean crop ratings unchanged at 63% with ATI crop est at 3.818 bbu
· USDA Crop Progress, soybeans dropping leaves: 9% vs. 5% last year and the 5-year average of 7%
· USDA Crop Progress, spring wheat harvest: 88% vs. 36% for last year and the five-year average of 62%
· ATI Research: U.S. HRS wheat balance sheet, 15/16 carryout at 234 mbu vs. 213 million for 14/15
ENERGY
· Weaker: CLV15, -1.11, $48.09; EBV,-$0.79; EBV-CLV, $5.05, +$.06, RBV, -$.0400; NGV, +$.012; HOV, -$.0349
· Cash ethanol markets were mixed to begin the week on Monday: Chicago up 5/8; New York gained ¼; Gulf down ¾; Dallas added 1; Tampa climbed 1 ½; but LA was 1 ½ lower at $1.62 ½ per gallon
· Ethanol RINs were mixed: 2013’s up 5/8 to 38-39 ¼; 2014’s down 1/8 to 38 ½-40 ¼; & 2015’s added 5/8 to 38-39 ¼
· The Sep RBOB/Sep Ethanol spread tightened up on Monday, losing nearly $.04 to $.0391/gallon
LIVESTOCK/POULTRY    
· Choice boxed beef values were 98-cents lower on Monday, and at $242.24 are down $2.07 vs. the prior week
· 5-Area Weekly Weighted Average Steer price was down $2.33 last week to $144.86/cwt & is $10.59 lower vs. last year
· On Monday, USDA mandatory pork carcass cutout was $1.31 higher, but at $85.31 is still $1.91 lower vs. a week ago
· CME Lean Hog Index down $0.58 at $77.70. October futures up $1.60 at $68.025 but are $9.675 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather