HIGHLIGHTS
· MARKET TREND—Higher: CU: Up $.0050; SQ: Up $.1025; WU: Up $.03; KWU: Up $.0250
· MACRO: Yesterday’s lower U.S. close raises concerns over the durability of global economic growth; Japan’s stimulus conitinues to disappoint. ASIA: Nikkie falls 1.88%; Hang Seng gives up 1.76%; Shanghai eks out a .27% gain. .EUROPE: Lower. The FTSE is down .22%; the DAX, -.05% and the CAC, -.46%. WALL STREET: Futures are weaker: DOW, -33; S&P, -3.75; NAS, -8.50. EXTERNALS: The $ Index is up .167 @ 95.155; August Gold is $1.30 lower @ $1,363.10; and Sep crude oil is $.20 higher @ $39.71. Deliveries: 75 SBM; 674 SBO;0 SB; 0 ETOH
· T-storm Weather: Scattered thunderstorms dot the Corn Belt through today, including another pocket or two of significant totals. Organized rain follows within Fri.-Sun. in/near Kansas-Nebraska-Iowa-Missouri when a tropical wave passes. Temps warm through today, then cool Thu.-Fri., then warm again early next week, followed by a period of cooling later next week. End result is most areas experience near-normal temps through 10 days, with widespread coverage of at least near-normal rain
· Corn: CU Up $.0050 @$3.2475; CZ Up $.0075 @ $3.3475. The funds sold an additional 5 K Tuesday
· SB: SQ Up $.1025 @ $9.9550; SX Up $.0975 @ $9.81. Funds: Sold 10 K SB, 7 SBM; bot 3 SBO. Sep crush, +$.02, $.83; LY: $1.25
· Wheat: WU Up $.03 @ $4.0450; WZ Up $.0250 @ $4.3050. The funds sold 3 K on Tuesday
CORN/SORGHUM     ;  
· December 2016 corn futures closed at $3.34 Tuesday, which is the lowest settlement price for the life of contract
· ATI Research: Near-term U.S. corn exports projected to average 55.5 mbu per week, almost double the 5-year avg.
· T-storm Weather: More than 10 days out, a seasonable pattern is probable as core of upper-level high pressure stays far west of key areas. The setup is also conducive to rain with a period of dry and hot weather not expected
· Consultant: Drier than normal soil moisture a concern in parts of Ohio, Michigan, eastern Indiana and South Dakota
· Ethanol margins: $0.34 per gallon—down from 0.38 last week and $0.57 last year. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· ATI Research: On average, an additional 31% of U.S. soybeans set pods betweenJuly 31-Aug. 14
· ATI Research: Expect near-term U.S. soybean exports to average 25.0 mbu per week, nearly triple the 5-year avg.
· Consultant: High temperatures do not negatively impact soybeans if there is adequate soil moisture
· ATI Research: Expect U.S. all wheat exports over the next 4 weeks to range from 20-25 mbu vs. 17.7 last year
· Rapid development of U.S. hard red spring wheat shown by 86% of North Dakota crop coloring vs. 56% average
ENERGY
· HIgher: CLU16, +0.20, $39.71; EBV,+0.21-.; EBV-CLU, $2.28, -$.01; RBU, -.0036; NGU, +.005; HOU, +$.0116321
· EIA estimates: crude, -1.9 (API: -1.3); Gasoline, -1.0 (-0.5); Distillates, -0.8 (+0.5)
· Additional weakness developed in cash ethanol markets on Tuesday: Chicago off 3 3/8; New York eased 2 ¼; Gulf declined 3 ½; Tampa slipped 4; Dallas down 2; and LA was 9 lower at $1.51 ½ per gallon
· Ethanol RINs weaker: 2014’s down 1 at 93 ¼-94 ½; 2015’s off 1 at 93 ¼-94 ½; and 2016’s declined 1 to 93-94 ¼
· The Sep RBOB/Aug ethanol inverse continues to decline, off $.0330 to -$.06340/gal yesterday
LIVESTOCK/POULTRY    
· Choice boxed beef values increased 70-cents on Tuesday to $198.40, but are still $1.53 lower vs. last week
· Cash cattle trading was very quiet on Tuesday, with a few bids of $120 in the South and $186 in the North
· USDA mandatory pork carcass cutout value was $1.83 lower on Tue. at $76.92, which is the lowest level since April 12
· CME Lean Hog Index was $0.54 lower on Tue. at $72.21. August futures $0.275 higher but are $3.285 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather