HIGHLIGHTS
· Market Trend—Corn, Steady to Up ½ ; Soybeans, Down 1-2; Wheat, ¼ to ½ Lower
· Preliminary HSBC survey data from China (mfg) indicates a 7 month high in October—implied economic rebound sends most markets higher but the Shanghai Composite ends .9% lower on tighter credit concerns. Hang Seng off .7%; major EU stock centers up. U.S. futures point to a higher start: S&P, + 6 ¾; Dow, +60; Nasdaq, +12 ½. Outside markets: Gold, +$4.30; the energy complex is mixed with oil 35-40 cents higher and the $ Index is .079 weaker at 79.25
· Most of the Midwest is forecast to see no precipitation through Saturday, with the exception of Michigan where light amounts are possible. Looking further ahead, it appears the next best chance for precip will be seen around Wednesday of next week. Highest coverage at that time is forecast for areas south of Highway I-80 with heaviest amounts in southern Missouri, Arkansas & far southern Illinois. Very cold temperatures will persist today before gradual warming begins Friday
· Dec Corn Up $.0025 at $4.43; Mar Corn Up $.0025 at $4.5550. The funds bought 6 K yesterday
· Nov SB Down $.0150 at $13.0850; Jan SB Down $.0175 at $13.0225. Fund bought 5 K SB, 4 K SBM and were even on SBO
· Dec Wheat Down $.0025 at $7.0150; Mar Wheat Down $.0050 at $7.11. Funds buy 2 K again on Wednesday
CORN/SORGHUM
· Corn yields in northwest Corn Belt where harvest is gaining momentum are generally above expectations
· Export Sales report released at 7:30 AM CDT. Trade expects 24 to 33mbu corn compared to last week’s total of 30.5 million. Trade will be watching to see if China makes additional purchases
· Weekly ethanol production increased 28 thousand barrels per day last week to 897 thous, which is also up 96 thousand or 12% vs. last year’s 801
· Corn mature for week ending Oct. 27 likely to be 96-98% vs. last year’s 100% and the average of 97%
· Corn harvest for week ending Oct. 27 likely to be near 50%, which is well below last year’s 90% & trailing the 62% avg.
SOYBEANS/WHEAT
· Export Sales report. Trade expects 31 to 39mbu soybeans compared to last week’s total of 33.2 million. Recent buying of U.S. beans has been unprecedented over the past month—trade watching to see if that trend continues
· SBM export sales est 150-250 combined sales for 12/13 and 13/14; SBO at 10-20 KMT combined
· Soybean harvest for week end Oct. 27 likely to be 70-75%--well behind last year’s 86% and trailing the 77% avg.
· Export Sales report: Trade expecting 22-31 for all wheat compared to last week’s total of 30.8
· Concerns about wheat crops in Argentina and Brazil are providing support; KWZ3 trades to highest level since June 5
· Winter wheat planting for week end Oct. 27 likely to be 85-90% vs. 87% last year and close to the avg. of 85%
ENERGY
· The energy markets are mixed: QCLZ13, +$0.41 at $97.27; QRBZ, +$0.0104; QNGZ, -$.031 and QHOZ, -$.0014
· Cash ethanol markets were slightly lower on Wednesday: Chicago was ½ lower; Gulf and Tampa off a penny, respectively; NY was 1 ½ weaker; Dallas down ½; and LA also decreased ½ to $2.22 ½ per gallon
· RINs, lower: 2012’s down 1 ½ to 26-29; 2013’s 1 ½ lower to 27-30; and 2014’s down 2 at 27 ½-30
· The spread between November RBOB/ethanol closed at $.7997 Tuesday and snugged in nearly 5 cents yesterday to $.7513/gallon
LIVESTOCK/POULTRY    
· Cash cattle trading developed yesterday afternoon at $132 to $133, up $2 to $4 from last week
· Choice boxed beef values gained $1.48 yesterday and have increased $4.78 over the last four trading days
· The USDA pork carcass cutout value fell $1.69 yesterday and has lost $2.00 over the last two days
· After falling $1.88 Tuesday, the USDA’s Iowa/Minnesota average cash lean hog price firmed 28-cents yesterday
Sources: Bloomberg, Dow Jones, AP, T-storm Weather