HIGHLIGHTS
· Market Trend: Corn, Down 2-3; Soybeans, 8-9; Wheat, Down 4-6
· Both China’s official and HSBC’s Purchasing Manager’s Indices revealed the best monthly gains in 2 ½ years. Asia responds with Shanghai closing .6% higher after being up as much as 2%; the Nikkei gains .3% while the Hang Seng retreats by nearly 1%. Trade in Europe is mostly lower: The FTSE is off .15%; CAC 40 is down .11% while the DAX has registered gains of .13%. Pre-market indications in the U.S. have the DOW 2 lower; the S&P is down a ¼ point and the NAS, up .30. The $ Index remains on an upward trek, gaining .229 to 89.16; gold is $1.50 higher at $1,200.70 and energy futures are mostly lower
· T-storm Weather: Cool fronts sweep northward and dissipate across Brazil and Paraguay through 10 days; above-average rainfall results in Center-West Brazil, while near-average rainfall occurs elsewhere. Therefore, dryness is unlikely to be an issue leading into late-month, though the potential for excessive wetness will need to be monitored in / near Mato Grosso and Mato Grosso do Sul. To the south, dry and increasingly hot and windy weather envelop Argentina from Wed-Thurs into the weekend. The pattern turns more active from this weekend forward as waves of energy flow eastward to break heat and trigger thunderstorms
· Dec Corn Down $.0250 at $3.6525; March Down $.0275 at $3.7850. Deliveries: 40. Funds: sold 7 K
· Jan SB Down $.0850 at $9.87; March Down $.0850 at $9.9450. Del’y: SBO, 9. Funds: sold 8 K SB; 5 K SBM, and 8 K SBO
· Dec Wheat Down $.0475 at $6.0025; March Down $.0650 at $5.9650. Del’y: 600 KW. The funds were even yesterday
CORN/SORGHUM    
· ATI Research: Competitive position of U.S. corn in the world export market does appear to be improving somewhat
· T-storm Weather: Dry weather is needed for corn planting in Argentina since the heart of the grain belt received 3.00”-5.00” of rain over the last two weeks
· Private crop consultant: Farmers in Argentina will now refocus their efforts to resume planting their late corn
· Ethanol margins: $0.61 per gallon vs. $1.04 last week and well below $1.17 last year. EIA report at 9:30 AM CST
SOYBEANS/WHEAT
· ATI Research: Sharp fall-off in U.S. soybean export inspections this week suggests the Chinese push may be over
· T-storm Weather: Periods of drying would be ideal for some vegetative soybeans across Brazil and Paraguay
· Private consultant: Potential exists for soybean acreage in Argentina to increase due to some switching from corn
· ATI Research: Latest indicators suggest potential for an additional decline in the forecast of U.S. HRW wheat exports
· Chicago December wheat futures traded to $6.12 on Tuesday—highest price since June 27—but closed $0.015 lower
ENERGY
· Futures are mixed: QCLF14, +$0.38 at $67.26; QRBF, -$0.0049; QNGF, -$.042; and QHOF, +$.0021
· EIA estimates: crude, +0.6 (API: -6.5); Gasoline, +0.8 (+0.0); Distillates, -0.3 (+2.5)
· Cash ethanol markets were lower to sharply lower on Tuesday: Chicago dipped 18 ½; Gulf off 8; Dallas eased 3 ½; Tampa off 11 ½; New York slid 22; and LA was 15 ½ lower at $2.46 per gallon
· RINs were higher again: 2013’s gained 3 ½ to 59 ½-60 ½; 2014’s up 3 ¾ to 60-61; and 2015’s added 3 to 59 ½-61
· December ethanol’s premium to January RBOB retreated $.0486 to $.2384/gallon yesterday
LIVESTOCK/POULTRY  
· Choice boxed beef values were down $1.12 on Tuesday and are 51-cents lower compared to last week
· Asking prices for cash cattle remained near $175 in the South on Tuesday
· USDA pork carcass cutout value decreased $1.96 Tues., is 27-cents below last week and at lowest level since Feb. 11
· CME Lean Hog Index down steady at $88.45. December futures down $0.625 to $89.50 & are $1.05 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather