HIGHLIGHTS
· Market Trend: Corn, Down 1-2; Soybeans, SU, Down 5; SX, up 4; Wheat, Mixed
· Asia finished mixed this morning—both the Nikkei and Shanghai gained .09-.11% but the Hang Seng lost over .6%. Trading in Europe is also mixed with the FTSE up .09% while the DAX and CAC 40 are down a like amount as traders noted an expected decline in German consumer confidence in the coming month. U.S. markets appeared poised to follow through from yesterday’s record S&P close: Dow futures are 15 higher; the S&P. up 1 and the Nasdaq, +2.25. As for the outside markets; the energy complex is higher; gold is up $1.10 at $1,284.90 and the $ Index is .109 lower at 82.57
· T-Storm Weather: A sharp north-south humidity and temperature gradient is developing. Waves of energy and a full-blown storm system ride the gradient through the weekend, resulting in widespread rainfall. A larger and stronger system passes around next Monday-Tuesday, but appears unlikely to break the setup, causing additional rounds of rain to recur next week – especially in the heart of the Corn Belt. A few thunderstorms return to excessively-wet areas of spring wheat belt at that time
· Sep Corn Down $.0150 at $3.5450; December Down $.0175 at $3.6325. Funds sold 4 K on Tuesday
· Sep Soybeans Down $.0525 at $10.7025; Nov Up $.04 at $10.32. Funds: sold 4 K SB; 6 K SBM and bought another 3 K SBO
· Sep Wheat Down $.0025 at $5.4125; December Down $.0025 at $5.5625. The funds sold 1 K yesterday
CORN/SORGHUM
· T-storm Weather: August ‘14 may well rank #1 wettest in at least 120 years, potentially besting 1977 by large margin
· ATI Research: U.S. corn is currently the most expensive among the major exporters
· Private crop consultant notes that in the wake of recent rains, the dry pockets for U.S. corn are shrinking and probably less than 10% of the Corn Belt is currently in need of a shower
· Ethanol margins: $0.93 per gallon vs. $0.88 last week and sharply above $0.55 in 2013. EIA report at9:30 AM CDT
SOYBEANS/WHEAT
· ATI Research: The competitiveness of U.S. soybeans in the world export market increased further this week with Gulf FOB values $13 lower at $471 per MT
· Private crop consultant: Abundant recent rain and warm/humid conditions are encouraging good soybean pod filling
· ATI Research: Strong export demand for SRW of late but overseas interest in HRW & HRS has been exceptionally poor
· T-storm Weather: 28% of U.S. spring wheat production received at least 90 days’ worth of rain over the last 30 days, helping to explain why harvest was well behind average as of Sunday
ENERGY
· Futures are trading higher: QCLV14, +$0.26 at $94.12; QRBV,+$0.080; QNGV, +$.039; and QHOV, +$.0034
· Cash ethanol markets posted losses on Tuesday: Chicago slipped a nickel; Gulf off 5 ½; Tampa eased 2; New York declined 3 ½; Dallas down 2 ½; and LA was 2 lower at $2.33 per gallon
· EIA estimates (API): Crude, -0.9 mb (-1.3); gasoline, -1.0 (-3.2); distillates, -0.6 (+2.4)
· RINs were mostly unchanged: 2012’s steady at 49-50; 2013’s unch at 49 ½-50; & 2014’s were 1/8 lower at 49 ½-49 ¾
· The RBOB/Ethanol spread gained $.0414 yesterday, settling at $.6381 per gallon
LIVESTOCK/POULTRY    
· Choice boxed beef values fell $1.21 yesterday and have lost $13.93 over the last thirteen trading days
· Cash cattle are quiet with feedyards asking $155, but no packer bids. Cash cattle traded last week at $152 to $153
· After falling $13.60 over the previous 7 trading days, the USDA pork carcass cutout value gained 27-cents yesterday
· CME Lean Hog Index down $1.41 to $101.91. October future up $1.65 to $95.10, but are $6.81 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather