HIGHLIGHTS

·         Market Trend—Corn, UP 1-2;  Soybeans, Up 6-7; Wheat, 2-3 Higher

·         Dow hits an all-time high on Tuesday, global stocks follow suit on anticipation the Federal Reserve will maintain full throttle on its stimulus efforts into the 1^st of the year (policy decision out at 2 pm).   The Nikkei rose 1.2%; the Hang Seng gained 2% and the Shanghai Composite rose 1.2%.  European markets are also higher in early trading:  DAX, +.3%; CAC-40, +.5% and the FTSE, +.6%.  Outside barometers have the $ Index .045 weaker at 79.625; crude is off $.65 and gold is $4.80 to the plus side.  A Reuters poll has Oct Chinese mfg at 51.2, suggesting fastest growth rate since April 2012. Futures have the Dow up 47 and the Nasdaq nearly 15 points higher ahead of the opening

·         Heavy rain is expected over the next 3 days for the heart of the Corn Belt.  Heaviest amounts Wed. are forecast for northeast Kansas, southeast Nebraska, southwest Iowa and northwest Missouri.  The system shifts eastward tonight into Thursday with amounts of 1.00”-2.00” impacting all of Missouri, Illinois, Indiana and Michigan.  Rain continues Fridayfor the eastern Corn Belt, although amounts are not quite as heavy for Ohio.  Temps well above-normal today before cooling significantly

·         Dec Corn Up $.0175 at $4.3375; Mar Corn Up $.0125 at $4.4550.     The funds bought 1,000 contracts on Tuesday

·         Nov SB Up $.0625 at $12.8525; Jan SB Up $.06 at $12.7675.  Funds bought 3 K SB, sold 4 K SBM, bought 6 K SBO yesterday 

·         Dec Wheat Up $.03 at $6.8425; Mar Wheat Up $.0225 at $6.9450.   Funds ended Tuesday trading even   

CORN/SORGHUM

·         December 2013 corn futures traded to $4.28 ¼ on Tuesday, the lowest price for the contract since Aug. 25, 2010

·         ATI Research: Weekly export forecast model calls for inspections to average 28 per week over the next month

·         Implied corn grind for ethanol in latest reporting week was 97 million, which is up 3 million from last week and 10.6  million higher over the corresponding 2012 figure

·         USDA is conducting its survey for Nov. 8 Crop Production report.  That’s expected to be completed around Nov. 3. 

·         Corn harvest price for crop insurance pegged at $4.4011 as of Oct. 29

SOYBEANS/WHEAT

·         Soybean yields still well above expectation in many areas; remaining harvest to be put on hold due to widespread rain

·         ATI Research: Soybean export model anticipates inspections near-term to average 60-65mbu per week.  Look for meal exports to average 135 to 140 K MT per week in line with the 5- year avg. but below 2012’s avg. of 187

·         Nationwide soybean planting progress in Brazil nearing 50% completion; record acreage possible

·         Soybean harvest price for crop insurance pegged at $12.8711 as of Oct. 29

·         ATI Research: All wheat export model anticipates inspections near-term to average 20-25mbu per week

·         HRW wheat crop off to a good start in Oklahoma (68% Good/Excellent), although there is virtually no correlation between fall condition ratings and final yield

ENERGY

·         The energy complex is mostly higher: QCLZ13, -$0.69 at $97.51; QRBZ, +$0.0128; QNGZ, +-$.007 and QHOZ, +$.0140

·         EIA estimates (API):  crude, +2.2 mb (+5.9); gasoline, -0.1 (+0.7); distillates, -0.4 (-2.7).  Bloomberg survey has ethanol production rising 1.1% this week to an average of 907,000 barrels per day

·         Cash ethanol markets were sharply lower Tuesday: Chicago was down 6; Dallas off 4 ½; Gulf 7 weaker; Tampa lost 2 ½; NY was down 8; and LA was 2 ½ lower at $2.09 ½ per gallon

·         RINs rebounded modestly: 2012’s up 2 ½ to 20-23; 2013’s were also 2 ½ higher at 21-24; & 2014’s up 1 ¾ at 21 ½-25

·         The November RBOB/ethanol spread widen nearly a penny to $.8088 per gallon on Tuesday

LIVESTOCK/POULTRY                                 &nb​sp;                       &nbs​p;                       

·         Choice boxed beef values gained $1.12 yesterday and have increased $3.27 over the last two days

·         Cash cattle markets are quiet with feedyards asking $135, but no packer bids.  Cattle traded last week at mostly $132

·         After rising 68-cents Monday, the USDA mandatory pork carcass cutout value eased 36-cents yesterday

·         The USDA’s Iowa/Minnesota average cash lean hog price eased 35-cents yesterday to $85.03

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