HIGHLIGHTS

·         Market Trend—Corn, Down 1-2; Soybeans, 10 to 15 Lower; Wheat, 3-5 Lower   

·         A mostly flat to slightly firmer tone is being seen in world stock markets on the heels of this week’s rally to all-time highs following the surprising decision by the Fed to keep its stimulus intact.  The MSCI index of world shares, which tracks stocks in 45 countries, was flat but this week’s rally put the index on track for its first three-week run of plus 2 percent gains since 2009.  For the moment, the Dow futures are up 3, S&P up less than a point and Nasdaq 4 higher.  Britain’s FTSE 100 was down marginally, Germany’s DAX edged up 0.1 percent with France’s CAC-40 up almost a like amount.  In Japan, the Nikkei 225 index closed 0.2 percent lower, while Australia’s S&P/ASX 200 fell 0.4 percent.  Gold is $11 weaker, oil is fractionally lower and the dollar is 0.040 weaker at 80.44.

·         T-storm Weather forecast: Areas of rain and thunderstorms affect much of the Corn Belt, Delta and adjacent areas of the Plains into Saturday as a cool front moves southward.  A notably warmer pattern follows, and most areas stay dry for at least 5-7 days.  The exception is in the central / northern Plains where a few thunderstorms occur around Sunday-Monday.  Better rain chances develop in the Plains around next Thursday-Friday, and a low chance exists for the system to also bring rain to the Corn Belt (especially west).

·         Dec Corn Down $.0125 at $4.5825; Mar Corn Down $.015 at $4.705

·         Nov Soybeans Down $.1575 at $13.2375; Jan SB Down $.1525 at $13.2625

·         Dec Wheat Down $.045 at $6.525; Mar Wheat Down $.045 at $6.63

CORN/SORGHUM

·         NWS October precip forecast: Below- to much-below-normal precip for Nebraska, Kansas, western Iowa & southern South Dakota, which should support active corn harvest.  Equal chance of above- or below-normal precip elsewhere

·         NWS October temperature forecast: Readings are forecast to be above- to much-above-normal for the vast majority of the Midwest, which should accelerate late-planted corn maturity

·         T-storm Weather: Rainfall through Saturday to stop early corn harvesting; warmth and limited rainfall next week to allow harvesting to quickly advance

·         Corn yields continue to run above expectations in most areas 

SOYBEANS/WHEAT

·         T-storm Weather: The potential benefit of rainfall on soybeans is limited by diminishing daylight

·         Soybean yields are mixed although harvest activity has been limited so far due to delayed crop maturity

·         Continued strong export demand boosted wheat futures on Thursday.  Greatest interest continues to be for HRW with Brazil making additional purchases of 4.4mbu in the latest reporting week

·         T-storm Weather notes light frosts recurred in wheat areas of Argentina this week

ENERGY

·         Energy markets are mixed: QCLV13, dn $0.73 to $105.66; QRBV, +.0064; QNGV, -$.038 and QHOV, +$.0138

·         Spot ethanol prices were higher: NY was reported 10 cents higher; the Gulf gained 12 and Chicago prices were up an average of 13 cents.  Dallas was 1 ½ higher and LA gained 6 ½; Tampa was 1 ½ higher

·         RINs: 2012’s were 6 ¼ firmer at 53-63 cents; 2013’s were 6 ¾ higher at 54-64; 2014’s up 6 ¼, to a 54-64 range

·         The Oct RBOB/ethanol spread increased to $.8236

LIVESTOCK/POULTRY                                &n​bsp;                       &nb​sp;                       &nbs​p;

·         Choice boxed beef values eased 28-cents yesterday and are down 84-cents from a week earlier

·         Pre-report USDA Cattle on Feed: Aug Placements 86.5 – 101.9%; Marketed 93.5 – 100.0%; Sep 1 on feed 92.7 – 96.0%

·         After increasing $2.12 over the previous two days, the USDA pork carcass cutout value eased 23-cents yesterday

·         The USDA’s Iowa/Minnesota average cash lean hog price gained $1.48 yesterday to $95.75

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

Brian Basting 
mail to: bbasting@advance-trading.com 
http://www.advance-trading.com