HIGHLIGHTS
· Market Trend: Corn, Down 1-2; Soybeans, Down 12-14; Wheat, Mixed
· July growth in China’s service sector posted the slowed to the lowest level since November of 2005. This contributed to a .15% drop in Shanghai; the Nikkei fell 1% overnight and the Hang Seng posted a .2% gain. Carry-over from Portugal’s central bank’s decision to aid Banco Espirito Santo bolstered European markets on Tuesday: both the DAX and CAC were .7-.8% higher in early trading with the FTSE up .45%. U.S. futures are slightly weaker: Dow, off 20; S&P, down .17% and the NAS, 7 lower. Outside markets show the $ Index up .135 at 81.54; gold is $2.80 higher at $1,290.50/oz and energy futures are mixed
· T-Storm Weather: Several waves of energy move across the central U.S. over the next week. Each wave has the potential to develop areas of rain and thunderstorms, though cool air oozes outward from southeast Canada to make the atmosphere more complex than usual for forecasting. It is difficult to pinpoint exactly when and where it will rain, but the main point remains that we are forecasting widespread rain of 0.75” - 1.75” with highest coverage and amounts in the Corn Belt on Wednesday-Thursday
· Sep Corn Down $.0175 at $3.57; December Down $.0225 at $3.67. Fund buying totaled 8 K on Monday
· August Down $.1225 at $12.2025; Sep Down $.1375 at $10.8150. Funds bought 8 K; 6 K SBM and 5 K SBO yesterday
· Sep Wheat Down $.0075 at $5.4325; December Down $.0050 at $5.64. The funds started the week off buying 5 K
CORN/SORGHUM
· ATI Research: USDA pegs U.S. Good/Excellent corn ratings dn 2 points to 73%. However, due to early yield checks and indications of higher populations, updated ATI crop size up 141mbu from a week ago to 14.296Bbu; yield at 170.5bpa
· ATI Research: Updated corn balance sheet--13/14 carryout up 1mbu to 1.248Bbu; 14/15 up 372 mil to 2.045Bbu
· USDA Crop Progress: U.S. corn in dough stage at 36% compared to 17% last year and the 5-year avg. of 29%
· T-storm Weather: U.S. Corn Belt weather August 11+ difficult to assess but will likely be drier and mild
SOYBEANS/WHEAT
· ATI Research: USDA Good/Excellent U.S. soybean ratings unchanged at 71%; crop size up 47 million to 3.879Bbu
· ATI Research: Updated soybean balance sheet--13/14 carryout up 10 at 136mbu; 14/15 up 57 million to 510mbu
· T-storm Weather: Total of 30% of U.S. soybean production received less than 0.50” of rain over the last 14 days,
· ATI Research: USDA Good/Excellent U.S. spring wheat ratings unchanged at 70%; HRS crop model steady at 520mbu but ATI Spring Wheat Tour observes much higher production potential. Official crop estimate increased to 560mbu
· ATI Research: Updated HRS wheat balance sheet--14/15 carryout at 199mbu, which would be a 5-year high
ENERGY
· Futures are mixed: QCLU14, +$.22 at $98.51; QRBU, -$0.0095; QNGU, $.000; and QHOU, +$.0002
· Cash ethanol markets were mixed on Monday: Chicago up 3 ¾; Gulf down 1 ¼; New York eased 1; Dallas climbed 2; Tampa added 2 ½; and LA was a penny lower at $2.28 per gallon
· RINs were also mixed: 2012’s down ¼ at 52-52 ½; 2013’s steady at 52-53; but 2014’s were up ½ at 52-53
· The September RBOB/August narrowed in 3+ cents to $.6249/gallon
LIVESTOCK/POULTRY    
·  After easing 53-cents Friday, Choice boxed beef values firmed 9-cents yesterday
· USDA 5-area weekly average steer price for last week was $162.70, down $0.56 from the previous week’s record high
· After falling $3.66 over the previous three days, The USDA pork carcass cutout value firmed 12-cents yesterday
· CME Lean Hog Index down $0.75 to $125.07. August future down $0.95 to $117.075 and are $7.995 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather