HIGHLIGHTS
· Market Trend: Corn, Down ½ -1; Soybeans, Mixed; Wheat, 3-4 Lower.
· Spurred on by another record high close in the U.S. on Monday, world markets are mostly stronger today. Overnight, Japan’s Nikkei 225 closed 2.1% higher establishing a 7-year high. Hong Kong’s Hang Seng increased 0.3% although the Shanghai Composite declined 0.2%. Europe is slightly higher, up .24% (DAX) and 0.10% (FTSE). Early indications are for a firmer start for U.S. stocks: DOW futures, +39; S&P, +6; NAS, +19. Outside markets: gold, -$2.60; energy futures, lower; $ Index, up .079
· T-storm Weather: A cool front triggers a few thunderstorms as it moves across Argentina, Brazil, and Paraguay over the next several days. Although unneeded rainfall results in Paraguay, wettest areas of Argentina and South Brazil receive limited amounts, while helpful rains recur in key areas of Center-West, Northeast, and Southeast Brazil. A sustained period of dry weather continues / follows from Argentina through South Brazil and Paraguay, continuing to improve conditions for planting after pockets of heavy rainfall, but a round of rain will eventually be needed at a few locations
· Dec Corn Down $.005 at $3.6875; March Down $.0075 at $3.8125. On Monday, the funds bought 4 K. 0 ethanol deliveries
· Nov SB Up $.0175 at $10.2925; Jan Unch at $10.2575. Funds: bought 0 K SB, -3 K SBM, 0 K SBO. 0 SB deliveries
· Dec Wheat Down $.03 at $5.1425; March Down $.0325 at $5.24. Fund bought 0 Kon Monday
CORN/SORGHUM      
·   ATI Research: U.S. corn crop size is lowered 149 mbu last week at 14.445 Bbu with national average yield of 173.9 bpa
· ATI Research: Updated corn balance sheet; 14/15 usage dn 16mbu from last week, carryout dn 133 mbu to 2.234Bbu
· USDA Crop Progress: U.S. corn harvest pegged at 80% vs. 65% last week, 82% last year and the 5-year avg. of 80%. The 15-point jump for the latest week is just below the largest increase since 1994 of approx. 16%
· Private consultant: 2014/15 full-season corn planting in Brazil is approx. 60% complete compared to the 65% average
SOYBEANS/WHEAT
· ATI Research: U.S. soybean crop size unchanged from last week at 3.978Bbu with national average yield of 47.7 bpa
· ATI Research: Updated soybean balance sheet; 14/15 usage up 10mbu from last week, carryout dn10 mbu to 420mbu
· USDA Crop Progress: U.S. soybean harvest pegged at 90% vs. 83% last week, 90% last year and the 5-year avg. of 91%
· Private consultant: 2014/15 Argentina soybean crop est reduced 1.0 MMT as heavy rains delay planting
· USDA Crop Progress: U.S. winter wheat planted, 93% vs. 93% avg.; emergence at 83% vs. the 5-year avg. of 79%
· ATI Research: SRW wheat balance sheet, 14/15 carryout at 167 mbu. 15/16 carryout, 156 mbu
· Private consultant: 2014/15 Argentina wheat crop negatively impacted by heavy rains in recent weeks
ENERGY
· Futures are lower: QCLZ14, -$0.40 at $76.98; QRBZ, -$0.0179; QNGZ, -$.082; andQHOZ, -$.0241
· Cash ethanol markets were mixed on Monday: Chicago up ¼; Gulf down 5 ¾; New York off 2 ½; Tampa gained 2 ½; Dallas eased 1 ½; and LA was 3 higher at $2.29 per gallon
· RINs were higher: 2013’s up ¾ to 46-47; 2014’s gained 7/8 to 46 ¾-47 ¼; and 2015’s were 1 1/8 firmer at 46 ½-47 ¼
· The Dec RBOB/Dec Ethanol spread declined $.0721 cents to $.1801 on Monday
LIVESTOCK/POULTRY  
· Choice boxed beef values were 3-cents higher on Monday but are $1.59 lower compared to last week
· The 5-Area Weekly Weighted Average steer price declined $0.85 last week to $166.61
· USDA pork carcass cutout value decreased 91-cents on Monday and is $3.85 lower vs. a week ago
· CME Lean Hog Index down $0.09 to $87.92. December futures up $0.775 to $89.55 and are $1.63 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather
Brian Basting
mail to: bbasting@advance-trading.com
http://www.advance-trading.com