HIGHLIGHTS
· MARKET TREND—Firm: CU: up $.0025; SU: up $.0425; WU: up $.0125; KWU: up $.0075
· MACRO: Global markets are mixed and marking time ahead of comments from the Jackson Hole central bank conclave. ASIA—Mixed: Nikkei, +0.26%; Shanghai, -0.08%; Hang Seng, unch. EUROPE: Weaker: DAX, -0.03%; FTSE,-0.05%; CAC, -0.01%. WALL STREET—Futures are lower—DOW, -42; S&P, -7.25; NAS, -16.00. EXTERNALS: $ Index:-.121 @ 93.430; Sep Gold: +$1.40 @ $1,287; Oct crude:-$.11 @ $47.72/bl.
· T-storm Weather: Widely-scattered t-storms should form along the western periphery of cool front Fri.-Sun., producing scattered 0.25" to 0.75" amounts. Significant rainfall does not occur to the east, but the remnant circulation of a tropical system needs to be monitored because it will attempt to drift across the Delta and produce heavy rainfall, then possibly the eastern Corn Belt next week
· CU up $.0025 @ $3.4625; CZ, steady@ $3.60. The funds were again net sellers, 10K on Tuesday
· SU, up $.0425 @ $9.38; SX, up $.0550 @ $9.43. Funds: Even SB, sold 1 SBM, bot 2 SBO. Board crush: $.91, +1; LY, $.70
· WU, up $.0125 @ $4.0350; WZ, up $.0125 @ $4.3025. More fund selling with 8 K transacted yesterday
CORN/SORGHUM
· Tuesday’s $3.60 CZ close is just a shade (1/4 cent) above the contract low of $3.59 ½ on 8/31/2016
· Near-term corn exports estimated mid-to-high 20’s; unshipped sales at a 12-year low and Brazil’s shipments ramp up
· Despite a pessimistic new crop picture, 16/17 U.S. corn exports may exceed the USDA’s forecast by 40-60 million
· Global corn imports expected to rise 375 mbu in 17/18 to a record 5.8 billion bushels, more than double the 15-year average growth of 174 mbu/year
· Carry-out impact? . . . the range between USDA high & low combined feed/residual & FSI estimates the past 4 years is less than 16% of 16/17’s ending stocks total of 2.37 billion bushels. Or, about 375 million
SOYBEANS/WHEAT
· Worth noting? USDA sees 17/18 exports rising 75 million to 2.225 bbu despite an increase in S AM shipments of over 150 mbu. Yet, early August unshipped sales of 479 mbu are down 1/3rd from a year ago & at a 9-year low
· Commerce Department will pursue implementation of countervailing duties on biodiesel imports from Argentina and Indonesia at rates which could be quite high—note BO up $.0060+ this morning
· Near-term exports of all wheat classes are forecast at 17-25 mbu per week
· T-storm Weather: Widely scattered ¼-3/4” showers forcast for the Western Plains for the weekend while an expansive and cool surface level high pressure system will limit rainfall east of the Mississippi River
ENERGY
· Weaker: CLV17, -$0.11 @ $47.72; EBV, -$0.19 @ $51.68; EBV-QCLV, -.07; RBU, -.0050; NGU, -.001; HOU, -.0088
· EIA Petroleum Stocks Estimates (API): Crude Oil, -3.1 (-3.6); Gasoline, -0.5 (+1.4); Distillates, +0.3 (+2.0)
· Cash ethanol markets were mixed on Tuesday: Chicago was again higher, up 1 ½ to $1.56 ½; Dallas & Tampa were steady; NYC gained a ½ cent to $1.61; the Gulf was $.01 higher at $1.63 and LA slipped $.02 to $1.73
· Ethanol RINs firmed 1 7/8 cents with 2016’s and 2017’s both in an 87-91 cent range
· The Sep RBOB/Sep ethanol spread widened nearly a ½ cent, to +$.04980/gallon
LIVESTOCK/POULTRY  
·  Choice boxed beef values were 6-cents lower on Tuesday at $193.03 and are down $5.92 vs. a week ago
· Initial cash cattle bids are at $106 in the South and $173 in the North vs. asking prices of $112 and $177
· USDA mandatory pork carcass cutout value fell $1.63on Tue. to $88.20 and is down $5.28 vs. last week
· CME Lean Hog Index declined $0.82 Tue. to $81.53. October futures fell $0.81 and are $17.655 below the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather