HIGHLIGHTS

·         Market Trend—Corn, Steady to ¼ Lower; Soybeans, 5-10 Higher; Wheat, Down 3-4

·         Weekend budget discussions inconclusive: GOP leaders say they would approve a six-week extension of the government’s borrowing authority; Obama says he would probably sign same.  Overseas trading is taking a holiday in Tokyo and Hong Kong; the Shanghai Composite gained .4%; the Kospi closed .2% lower and in Europe, markets range from little changed (UK) to .2 to .3% lower (Germany and France).  U.S. futures are negative:  the Dow is 90 lower; the S&P and Nasdaq are both off 10 ¾.  Gold is up nearly $15; the energy complex is mostly weaker and the $ Index is off .077 at 80.375.

·         T-storm Weather: Widespread and heavy rainfall of 0.75” – 1.50” affects the Plains today to slow HRW wheat planting, and t-storms then affect the Corn Belt Tuesday-Wednesday to slow corn / soybean harvesting as a strong cool front sweeps eastward.  A sharply colder pattern follows, likely inducing the first widespread frosts and freezes of the growing season within Thursday-Saturday (October 17-19).  A few t-storms dot driest areas of Argentina over the next couple of days, but highest chances are further north.  Occasional t-storms in Brazil and Paraguay result in mixed conditions for early planting.

·         Dec Corn Unch at $4.3325; Mar Corn Down $.0025 at $4.46.     Funds sell 6 K Friday

·         Nov Soybeans Up $.05 at $12.7150; Jan SB Down $.0475 at $12.71.  The funds sold 12K SB,  6 K SBM and 5 K SBO

·         Dec Wheat Down $.04 at $6.8825; Mar Wheat Down $.0350 at $6.9750.   Fund buy an estimated 4 Kon Friday

CORN/SORGHUM

·         Corn yields better- to much-better-than-expected; CZ3 corn futures trades at $4.32 ½ Fri., lowest since Aug. 27, 2010

·         It appears unlikely the USDA Crop Progress report will be available today.  ATI Research projects that corn mature for week ending Oct. 13 will be 90-95%, which is below last year’s 100% but near the avg. of 91%

·         Corn harvest for week ending Oct. 13 likely to be 30-35%, which is well below last year’s 78% and the average of 43%

·         Export Inspections released at 10 AM; Corn, 24.1 needed; 25.3 last week.  Milo—3.0 needed; 2.0 last week

·         T-storm Weather: Major soil moisture deficits persist across Cordoba—a major corn growing province in Argentina

SOYBEANS/WHEAT

·         Soybean yields better- to much-better-than-expected; SX3 futures trades at $12.68 Fri., lowest since Oct. 2

·         Soybeans dropping leaves for week end Oct. 13 likely to be 90-95%--behind last year’s 96% but near the 94% avg.

·         Soybean harvest for week end Oct. 13 likely to be 45-50%, which is well below last year’s 69% & the average of 57%

·         Export Inspections released at 10 AM CDT; Soybeans, 27.7 needed; 30.6 last week

·         T-storm Weather: High rainfall coverage for soybean areas of Goias & Mato Grosso (Brazil) holds until Wed-Fri 

·         Export Inspections released at 10 AM CDT; Wheat, 16.9 needed; 29.8 last week

·         Winter wheat planting for week end Oct. 13 likely to be near 70%--equal to the avg. and close to last year’s 69%

ENERGY

·         Energy markets are mostly lower:   QCLX13, -$0.62 at $101.40; QRBX, -0.0155; QNGX, +$.062 and QHOX, -$.0106

·         Cash ethanol markets were mixed on Friday: Chicago and the Gulf were unchanged; NY was 2 higher; Dallas was down 1 ¾; and Tampa was off ¾ cents; and LA declined ½ to $2.19 ½ per gallon

·         RINs, lower again: 2012’s down 5 ¾ to 22-32; 2013’s 4 ¾ lower to 24-34; and 2014’s down 4 ¼ at 24-35

·         The November RBOB/ethanol spread lost $.0190 to close at $.9501 per gallon

LIVESTOCK/POULTRY                            ​;                        ​       

·         Feede​r cattle futures once again made new record highs on Friday fueled by extremely tighter feeder supplies

·         December live cattle future traded to $132.85 on Friday, the highest prices since Feb. 8

·         U.S. hog futures ended mixed on Friday, with October edging higher but deferreds were pressured by profit-taking

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