HIGHLIGHTS
· Market Trend: Corn, Down 2+; Soybeans, SU, Up 5 with SX, Down 5-6; Wheat, Steady to 1 Higher
· Central banks in Europe and Japan intend to “stay the course” insofar as stimulus measures for their respective economies are concerned, supporting most world equity markets this morning. In Asia, the Nikkei closed .48% higher; the Hang Seng was up .22% while Shanghai retreated a ½ percentage point. In Europe, the CAC 40 is up a full one percent; the DAX is similarly higher with Britain’s FTSE off a very modest .04%. U.S. stock index futures suggest a higher opening: Dow, +42; NAS, +15 ¼ and the S&P, +5.5. Energy futures are higher; gold is off $2 at $1,276.60 and the $ Index continues to march higher, up .153 at 82.53
· T-Storm Weather: Recent rains mark a clear divergence from the last three growing seasons as the proportion of soybeans (and corn) that are dry at the topsoil and subsoil levels further diminishes into September, as opposed to increasing. Thunderstorms return to the Corn Belt within today-Wednesday as a cool front breaks warmth. A seasonable to mild and dry pattern likely follows the cool front for the last few days of August and into early September
· Sep Corn Dwon $.0225 at $3.6325; December Down $.0225 at $3.6925. The Funds closed out the week buying 5 K
· Sep Soybeans Up $.0525 at $11.7125; Nov Down $.0575 at $10.3625. Funds: bought 3 K SB; 4 K SBM and sold 5 K SBO
· Sep Wheat Steady, at $5.52; December Up $.01 at $5.6325. The funds said to have bought 7 K on Friday
CORN/SORGHUM
· ATI Research: USDA Crop Progress likely to show U.S. corn crop Good/Excellent 72-73% vs. 72% last week, 59% last yr.
· U.S. corn dough estimated to be 83-88% as of Aug. 24 compared to 67% last year and the 5-year avg. of approx. 78%
· Export Inspections released at 10 AM CDT; Corn, 51.0 needed (after adjusting for discrepancy between FGIS and Census); 38.2 last week. Milo—7.2 needed; 6.4 last week
· Commitment of Traders report: Non-Commercial long corn futures only positions decrease 1,051 contracts
SOYBEANS/WHEAT
· ATI Research: Crop Progress likely to show U.S. soybean crop Good/Excellent 71-72% vs. 71% last week, 58% last year
· T-storm Weather: Proportion of U.S. soybeans drier than normal at topsoil level has diminished sharply since Aug. 1
· Export Inspections; Soybeans, 3.8 needed (after adjusting for discrepancy between FGIS and Census); 2.1 last week
· Commitment of Traders report: Non-Commercial long soybean futures only positions decrease 1,899 contracts
· ATI Research: Crop Progress likely to show U.S. spring wheat Good/Excellent 66-68% vs. 68% last week, 67% last year
· Commitment of Traders: Non-Commercial long CBT wheat futures only positions increase 412 contracts
ENERGY
· Futures are higher this morning: QCLV14, +$0.17 at $93.82; QRBV,+$0.0042; QNGV, +$.074; andQHOV, +$.0089
· A steady to mixed trend was evident in cash ethanol markets on Friday: Chicago was unchanged; Gulf up 3 ½; Tampa gained 1 ½; New York down ¾; Dallas added 1; and LA was 1 higher at $2.36 ½ per gallon
· RINs were fractionally lower: 2012’s down ¼ at 49-50; 2013’s off ¼ to 49-50; and 2014’s were ¼ weaker at 49-50
· The September RBOB/Ethanol spread lost 3 cents on Friday to close at $.5664 per gallon
LIVESTOCK/POULTRY ;
· Choice boxed beef values declined 69-cents Friday and have lost $12.64 over the last eleven trading days
· USDA Cattle on Feed report confirms July placements were down 7% from LY and smallest since at least 1996
· The USDA pork carcass cutout value fell $2.15 Friday and has declined $12.68 over the last six trading days
· CME Lean Hog Index down $2.20 to $104.99. October future down $0.75 to $92.875 and are $12.115 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather