HIGHLIGHTS
· Market Trend—Corn, Up 2-3; Soybeans, 9-10 Higher; Wheat, 3-4 Higher
· The up-coming show-down at the White House leads to optimism for a resolution to the current gridlock. And, lifts many global equity markets higher. The Nikkei gained 1.1%; SE Asia markets were generally higher although Mainland China did drift lower. EU bourses began the day on the plus side and major U.S. indicators certainly have a positive tone about them—Dow futures, up 133; S&P, up 17 and Nasdaq futures, 30 higher. Gold is trading $4.60 lower; the energy complex is higher and the $ Index is slightly firmer, up .039 at 80.505
· T-storm Weather: Dry and unseasonably mild weather dominate most of the central U.S. through at least Friday. A few t-storms follow in key areas Saturday-Sunday as a cooler pattern begins, but high coverage of heavy rain is not expected. A better chance for rain exists in most corn, soybean, and winter wheat areas early next week as a larger system chugs eastward and starts a notably cooler pattern; frosts and freezes likely occur in northern corn and soybean areas in 7-10 days. Note that drying is particularly needed in eastern Corn Belt and Delta for SRW wheat planting; 63%, 63%, and 90% of usual production received at least 21 days’ worth of rain over the last 7 days
· Dec Corn Up $.0250 at $4.46; Mar Corn Up $.02 at $4.5825 Funds bought 3 K Wednesday
· Nov Soybeans Up $.10 at $12.9775; Jan SB Up $.0925 at $12.9325. The funds were even on SB, sold 4 K SBM, bot 3 K SBO
· Dec Wheat Up $.0350 at $6.94; Mar Wheat Up $.0350 at $7.04. Fund selling estimated at 2 K yesterday
CORN/SORGHUM
· Corn yields are running above expectations in most areas, notably in Illinois
· At this time, it’s uncertain if the USDA Crop Progress report will be available next week. ATI Research projects that corn mature for week ending Oct. 13 will be 90-95%, which is below last year’s 100% but near the avg. of 91%
· Corn harvest for week ending Oct. 13 likely to be 30-35%, which is well below last year’s 78% and the average of 43%
· T-storm Weather: Driest corn producing areas of Argentina remain much drier-than-average through 7-10 days
SOYBEANS/WHEAT
· Soybean yields are still a bit more variable than corn, but in general remain above expectations in most areas
· Soybeans dropping leaves for week end Oct. 13 likely to be 90-95%--behind last year’s 96% but near the 94% avg.
· Soybean harvest for week end Oct. 13 likely to be near 50%, which is well below last year’s 69% & the average of 57%
· T-storm Weather: A few locations within Brazil (Goias and Mato Grosso) would benefit from widespread rain to improve topsoil moisture for early soybean planting. Rain chances in that region improve in 7-10 days
· Winter wheat planting for week end Oct. 13 likely to be near 70%--equal to the avg. and close to last year’s 69%
· T-storm Weather: Driest wheat producing areas of Argentina remain much drier-than-average through 7-10 days
ENERGY
· U.S. ethanol stocks fall to a 4-year low in latest EIA report
· Energy markets are higher with QCLX13, +$.41 to $102.02; QRBX, +0.0264; QNGX, +$.087 and QHOX, +$.0162
· Cash ethanol markets were firmer on Wednesday: Chicago was up 4 ¾; Gulf was 4 cents firmer; NY was 3 ½ higher; Dallas was up 4 ½; and Tampa was firmer by 4 ½ cents to $2.22 per gallon
· RINs, higher: 2012’s up 3 to 40-44; 2013’s 3 higher to 42-45; and 2014’s up 1 ¾ at 41-45
LIVESTOCK/POULTRY ;
· Cattle futures fell yesterday on news S. Korea banned some US beef imports after finding residue from the banned feed additive Zilmax
· Cash cattle markets are quiet with feedyards offering cattle at $128 while packers bid $123. Cattle traded LW at $126
· Hog futures fell sharply yesterday when early profit taking snowballed into technical selling
Sources: Bloomberg, Dow Jones, AP, T-storm Weather