HIGHLIGHTS

·         MARKET TREND: CORN: CZ, Steady; SOYBEANS: SX, Down $.0175;  WHEAT: WZ, Down $.0150; KWZ: Down $.0225

·         Overnight activity in Asia was mixed as insider trading investigations and allegations of corruption overshadow a Chinese money manager and a large motor group.  The Nikkei lost 2.1%; Shanghai slipped .2% while the Hang  Seng gained .89%.  Australia’s Reserve Bank left its benchmark interst rate unchanged a 2%, noting it could go lower; the ASX 200 gained 1.4%.  Europe is showing small losses.  U.S. futures are lower:  DOW, -29; S&P, -4 ¼; NAS, -10 ¾. Externals:  the energy complex is firmer; the $ Index is up 2/10’s of a point at 97.2 and gold is $5.40 lower at $1,130.40

·         T-storm Weather: Occasional thunderstorms affect key corn & soybean areas of Brazil the next 7-10 days as the region becomes sandwiched between hot & dry upper-level high pressure to the north, & cool & dry surface-level high pressure to the south.  Therefore, soil moisture remains adequate for planting & growth in most of the region.  To the south, the lack of rain also allows planting to advance in Argentina.  In the U.S., a strong cool front develops rain for drier SRW wheat areas of/near Illinois Thur/Fri

·         Dec Corn Steady at $3.7650; Mar Down $.0025 at $3.85.  Funds sold 7 K to open the week 

·         Nov SB Down $.0175 at $8.76; Jan Down $.0125 at $8.7750  Fund activity:  sold 4 K SB, 2 SBM and 4 K SBO.  Del’y:  97 SB

·         Dec Wheat Down $.0150 at $5.0650; Mar Down $.0125 at $5.1075.  Fund selling totaled 5 K on Monday            

 

CORN/SORGHUM      &nbs​p;                        ​;                        ​                        &​nbsp;                        &​nbsp;                       &n​bsp;        

·      &​nbsp;  ATI Research: U.S. corn balance sheet; 15/16 carryout up 20 million bushels to 1.705 bbu

·         ATI Research: U.S. sorghum balance sheet; 15/16 carryout lowered 38 million bushels to 25 mbu due to higher FSI use

·         USDA Crop Progress—corn harvest at 85% vs. 62% last year and 79% for the 5-year avg; sorghum harvest at 79% vs. 64% in 2014 and the 72% average

·         T-storm Weather: Seasonably heavy rainfall of 1.75” to 3.50” probable across key corn areas of Brazil over the next 7-10 days, while less to much-less rain occurs across much of Argentina

SOYBEANS/WHEAT

·         ATI Research: U.S. soybean balance sheet; 15/16 carryout is 13 million bushels lower at 401 mbu

·         USDA Crop Progress—soybean harvest at 92%, which is above last year’s 81% and higher than the 5-year avg. of 88%  

·         Private consultant notes that with recent rains over the weekend and more in the forecast, central Mato Grosso has “turned the corner” as far as rainfall is concerned and farmers will now start active planting their soybeans

·         T-storm Weather: Significant dryness (or wetness) issues do not appear to exist for most Argentina, Brazil soybeans

·         USDA Crop Progress, winter wheat planting: 88% vs. 83% last week, 89% last year and the 5-year average of 90%

·         ATI Research: U.S. HRS wheat balance sheet, 15/16 carryout at 245 mbu vs. 212 million for 14/15

ENERGY

·         Higher: CLZ15, +$0.47, $46.60; EBZ,+$0.55; EBZ-CLZ, $2.70, +$.05; RBZ, $.0111; NGZ, +$.029; HOZ, +$.0216

·         Cash ethanol markets were lower to begin the week on Monday: Chicago off 2 ¼; New York and Tampa down 2; Gulf and Dallas eased 2 ½; and LA was 3 lower at $1.73 ½ per gallon

·         Ethanol RINs up: 2013’s added 3/8 to 39 ¾-40 ¼; 2014’s firmed 3/8 to 40 ¼-40 ¾; & 2015’s 3/8 higher at 39 ¾-40 ¼

·         The Dec RBOB/Nov Ethanol inverse increased nearly $.0090 to  -$.2057/gallon on Monday    

LIVESTOCK/POULTRY                 &nbs​p;                        &nbs​p;                

·         Choice boxed beef values were 43-cents lower on Monday but are still up $2.55 vs. last week

·         5-Area Weekly Weighted Average Steer price up $0.84 last week to $136.22/cwt but is still $31.24 lower vs. last year

·         On Monday, USDA mandatory pork carcass cutout gained $1.39 but is still $6.36 lower compared to the prior week

·         CME Lean Hog Index off $1.20 at $69.98.  December futures $0.975 lower at $58.225 & are $11.755 below the index

             Sources: Bloomberg, Dow Jones, AP, T-storm Weather