HIGHLIGHTS
· Market Trend: Corn, Mixed; Soybeans, 2-5 Higher; Wheat, 4-5 Higher
· Higher sales taxes took the heat for a 6.8% QII contraction in Japan’s economy but optimism for a recovery in Q3 help lift the Nikkei to a .35% gain; the Hang Seng closed up .81% with Shanghai edging .06% higher overnight. Sentiment in Europe seems positive as early trading has the FTSE .28% higher; the CAC 40 is up .64% and the DAX, up over 1%. Future for major U.S. indices are likewise showing green: S&P, +9; Dow, +60 and the Nasdaq, +17 ½. In the outside markets, gold is $.40 higher at $1,309.20; the $ Index is .145 higher at 81.70 and energy futures are mixed
· T-Storm Weather: Cool and mainly dry weather dominate the Corn Belt over the next several days. A notably warmer pattern begins within Friday-Sunday and then dominates through next week as maximums generally reach the 80s-90s (warmest in the Plains). A few thunderstorms accompany the onset of warmth within Friday-Monday with highest overall rain chance in northern areas. The pattern appears conducive to rainfall next week though it will take several more days to fine tune the forecast
· Sep Corn Up $.0050 at $3.59; December Up $.0025 at $3.6925. Report day had the funds buying 2 K
· August Soybeans Up $.02 at $12.92; Sep Up $.0525 at $10.9950. Funds liquidated 10 K SB; 5 K SBM and 4 K SBO
· Sep Up $.0450 at $5.4250; December Up $.0475 at $5.56. More fund sales—6 K yesterday
CORN/SORGHUM
·  T-storm Weather: Widespread rainfall coverage of 0.50”-1.00” is forecast Aug. 18-25 for central U.S. corn
· ATI Research: The export model is forecasting near-term U.S. corn exports of 37.0mbu per week, which is up 12+ for the corresponding year-ago period and 7 million greater than the 5-yer average of 30 per week
· Private crop consultant notes that there are still areas that need additional moisture to finish off the corn crop including: northeastern IN, parts of northern IL, eastern and northern IA, southern MN, northeastern SD & eastern ND
· Ethanol margins: $0.83 per gallon vs. $0.77 last week and above $0.34 last year. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· ATI Research: New-crop U.S. soybean export sales of 49mbu per week are the best ever for the past month, a 60% increase over last year and nearly 80% above the 5-year average
· Private crop consultant: Rainfall last week especially beneficial for double crop soybeans in southern & western areas
· ATI Research: Near-term wheat export trends by class; HRW, 7-10mbu per week; SRW, 2-4; and HRS, 4-6
· Rain in southern areas of Western Australia—the largest wheat producing state—has been minimal thus far in August
ENERGY
· Futures are mixed: QCLU14, +$.03 at $97.41; QRBU, -$0.0088; QNGU,-$.025; and QHOU, +$.0046
· Cash ethanol markets had slight gains, ranging from a ½ cent for NY, the Gulf and Chicago to as much as 3 ½ cents for Tampa. Dallas gained 1 and LA posted a 2 ½ cent increase to $2.39/gallon
· EIA estimates (API): Crude, -1.7 mb (+0.2); gasoline, -1.3 (+2.7); distillates, +0.3 (-2.6)
· RINs were slightly firmer: 2012’s up ¼ to 51 ½-53; 2013’s also ¼ higher, 52-53 and 2014’s rose 1 to 52-55
· The September RBOB/Ethanol spread edged $.0090 lower to $.6545 per gallon
LIVESTOCK/POULTRY  
· Choice boxed beef values fell $1.29 yesterday and have lost $4.26 over the last three trading days
· Cash cattle lightly traded in Nebraska yesterday at $155, down $5 from last week
· The USDA pork carcass cutout value fell $3.55 yesterday and has declined $9.31 over the last three trading days
· CME Lean Hog Index down $1.05 to $118.86. August future down $0.475 to $114.075 and are $4.785 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather