HIGHLIGHTS

·         Market Trend—Corn, Steady—1/4 to ½ lower;  Soybeans, 5-6 Higher; Wheat, ½ to 1 Lower   

·         World stocks have a mixed tone this morning.  The Nikkei eased .3% after August consumer inflation moved to a 5-year monthly high; Europe is off to a lower start while Chinese markets managed to post modest gains as the country awaits the effects of a free trade zone opening in Shanghai.  Markets in S Korea, Australia and Taiwan were all modestly higher. U.S. markets are likely to start lower as hand-wringing over a looming government shut-down continues.  Dow futures are 54 points lower; the S&P looks to open down 7 ½ and Nasdaq futures are nearly 12 points in the red.  Outside markets have gold up $2.70; the December $ Index is at 80.5, down .138 and the energy markets are all trading to the down side.

·         T-Storm is anticipating that several cool fronts will move across the Central U.S. the next 10-14 days but readings will generally be above normal.  1” showers are expected from OK north through ND into the weekend with amounts in the Central Corn Belt in the scattered 2” to .4” range.  Argentine will remain unseasonably cool, slowing wheat development.  Localized showers can be expected this weekend for S La Pampa & S BA; corn areas continue to be slightly deficit rainfall.  In Brazil, scattered t-storms will be prevalent in the Center-West, especially early on, improving moisture conditions for soybean planting

·         Dec Corn Steady at $4.5675; Mar Corn Down $.0050 at $4.69.  The funds bought 2 K yesterday   

·         Nov Soybeans Up $.0550 at $13.2225; Jan SB Up $.05 at $13.2375.  Funds sold 3 K SB, 3 K SBM and 2 K SBO

·         Dec Wheat Down $.0050 at $6.7775; Mar Wheat Down $.01 at $6.8725.  Funds bought 6 K yesterday 

CORN/SORGHUM

·         Yesterday’s corn export sales of 25.2 included 5.1 to China; their YTD purchases of 131 mbu are 3+ X the 2012 pace

·         Early U.S. corn yield reports continue to be above average

·         Far East AND North African corn buying from the U.S. is at a 25-year low, down more than 25% from LY’s previous low

·         South Africa raises corn crop estimate 1.8% to 11.7 MMT (USDA: 13.0)

·         Brazil Ag Minister says corn exports this year will top the 20 MMT mark (USDA at 18)

·         North-bound corn barge movement totals 11.6 mbu in the latest week, with L&D #27 at 2 X the south-bound total

SOYBEANS/WHEAT

·         Yesterday’s wheat sales of 22.8 million were double the pace needed to reach the USDA forecast

·         Bean yields so far—generally better than expected

·         Kazakhstan’s Ag Minister boosted grain production estimate 2.2 MMT to 18.5, up 40% year to year with export a ½ MMT higher at 9 ½ million

·         China added 4.4 mbu to its U.S. SRW purchase total; now has 44 million still to ship

·         At 944 mbu, YTD SB sales are approaching 70% of the USDA forecast; on a record pace and up 15.5% yr to yr

·         Non-PRC/Unknown soybean sales down 11% year to year

ENERGY

·         Energy markets are easier:  QCLX13,  -$.60 to $102.40; QRBX, -0.0104; QNGX, -$.015 and QHOX, -$.0117

·         Ethanol markets were slightly lower:  LA lost a penny; Dallas and Tampa were a ½ cent lower; the Gulf fell 2 ½ cents and the Chicago average was pegged at $2.32 ½ per gallon, down ¾ of a cent fromWednesday

·         RINs: 2012’s edged up 1 to 51-53 cents; 2013’s were also 1 higher, 52-53 and 2014’s gained 1 ½, to 53-55

·         November RBOB/ethanol spread settled at $.9607 yesterday, in 1 ¾’s to $.9607 per gallon

LIVESTOCK/POULTRY                                        &​nbsp;                  

·         Cash cattle markets are quiet with feedlots offering cattle at $127 while packers bid $123.  Cattle traded LW at $124

·         The USDA pork carcass cutout value gained 81-cents yesterday and has increased $2.21 over the last two days

·         The USDA’s Iowa/Minnesota average cash lean hog price firmed 2-cents yesterday to $92.45

Sources: Bloomberg, Dow Jones, AP, T-storm Weather