HIGHLIGHTS
· Market Trend: Corn, Down 1; Soybeans, SU, Down 20 with SX, Down 4-5; Wheat, Steady to 2 Lower
· A mostly lower trend was seen in global stocks on the heels of new all-time highs in U.S. stocks on Monday. China’s Shanghai Composite Index declined 1% and Tokyo’s Nikkei was off 0.6%. In Europe, France’s CAC-40 was down 0.1% while Germany’s DAX was 0.4% lower but Britain’s FTSE 100 was up 0.3%. In U.S. markets, futures are suggesting a slightly higher open: Dow, +22; NAS, +6 and the S&P, +2.5. Energy futures are firmer and gold is higher. After moving higher in recent days, the $ Index is a bit weaker this morning, down .058 at 82.535
· T-Storm Weather: The remnant of a cool front divides the central U.S. from today through Saturday, keeping temps warmer than usual as muggy air lingers near and south of the boundary. Waves of energy and a full-blown system ride the boundary, resulting in multiple thunderstorm clusters through the period; widespread coverage of near- and above-average rainfall occurs – wettest in Nebraska, Iowa, Missouri, and parts of Illinois, but notably drier in exceptionally-wet areas of northern Plains
· Sep Corn Down $.0175 at $3.5825; December Down $.0025 at $3.6725. Funds sold 6 K
· Sep Soybeans Down $.2075 at $11.05; Nov Down $.0425 at $10.25. Funds: sold 8 K SB; 8 K SBM and bought 3 K SBO
· Sep Wheat Down $.02 at $5.405; December Down $.0025 at $5.5425. The funds sold 6 K on Monday
CORN/SORGHUM
· ATI Research: USDA pegs U.S. Good/Excellent corn ratings up one a point to 73%. Updated ATI crop size up 37mbu from last week to 14.268Bbu; yield at 170.2bpa
· ATI Research: Updated corn balance sheet--13/14 carryout down 11mbu to 1.118Bbu; 14/15 up 25 mil to 1.886Bbu
· USDA Crop Progress: U.S. corn in dent stage at 35% compared to 21% last year and the 5-year avg. of 43%
· T-storm Weather: Beginning next week (August 31+), the main storm track shifts to the north as a series of systems flow into western Canada, continuing the stormy pattern – especially in central and northern areas
SOYBEANS/WHEAT
· ATI Research: USDA Good/Excellent U.S. soybean ratings down one point to 70%; crop size dn 1 million to 3.904Bbu
· ATI Research: Updated soybean balance sheet--13/14 carryout unch at 123mbu; 14/15 dn 1 million to 522mbu
· ATI Research: USDA Good/Excellent U.S. spring wheat dn 2 points to 66%; adjusted HRS crop est dn 4 mil at 555mbu
· ATI Research: Updated HRS wheat balance sheet--14/15 carryout at 218mbu, up 29% from last year
· T-storm Weather: 90% of the U.S. spring wheat crop was wetter than usual over the last two weeks
ENERGY
· Futures are higher this morning: QCLV14, +$0.26 at $93.61; QRBV,+$0.0048; QNGV, +$.001; andQHOV, +$.0083
· Cash ethanol markets were mixed but mostly weaker on Monday: Chicago steady; Gulf gained 3 ½; Tampa off 1 ½; New York slipped 2 ¾; Dallas eased ½; and LA was 1 ½ lower at $2.35 per gallon
· Steady to slightly firmer RINs: 2012’s unch at 49-50; 2013’s up ¼ to 49 ½-50; and 2014’s were ¼ higher at 49 ½-50
· The RBOB/Ethanol spread firmed 2 cents on Monday to close at $.60090 per gallon
LIVESTOCK/POULTRY    
· Choice boxed beef values eased 8-cents yesterday and have lost $12.72 over the last twelve trading days
· The USDA 5-area weekly average steer price for last week was $153.14, down $1.78 from the week before
· The USDA pork carcass cutout value fell 92-cents yesterday and has declined $13.60 over the last seven trading days
· CME Lean Hog Index down $1.67 to $103.32. October future up $0.575 to $93.45, but are $9.87 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather
Brian Basting
mail to: bbasting@advance-trading.com
http://www.advance-trading.com