HIGHLIGHTS

·       MARKET TREND—Higher: CU: up $.0375; SU: up $.0950; WU: up $.0375; KWU: up $.04 

·       MACRO:  Sanctions on North Korea are today’s topic of interst.  ASIA—Higher: Nikkei, +0.52%; Shanghai, +0.54%; Hang Seng, +0.93%. EUROPE: Mostly higher: DAX, -0.38; FTSE, +0.11%; CAC, +0.11%.   WALL STREET—Futures are higher—DOW, +29; S&P, +2.00; NAS, +4.25.  EXTERNALS:  $ Index: -.141 @ 93.275; Sep Gold: -$2.90 @ $1,257;  Oct crude: -$.46 @ $49.27/bl.  Dely: SBM, 72; SBO, 442; SB, 343

·       T-storm Weather: Unreasonable coolness continues for U.S. crops for the next 7 to 10 days, leaving temps 4-8 degrees below normal.  Above-normal rainfall of 1.50”-3.50” is probable across the southern third of corn and soybeans.  Above-normal rainfall of 1.00”-2.00” occurs from Nebraska south starting today-Tue.  Rain will also affect the central and northern Corn Belt, but only scattered storms occur; near- to below-normal totals of 0.50”-1.00” are most likely from Iowa east and north

·       CU, up $.0375 @ $3.7025; CZ, up $.04 @ $3.85.  The funds bought 2 K on Friday           

·       SU, up $.0950 @ $9.6175; SX, up $.1050 @ $9.6725.  Funds: sold 3 K SB, 3 SBM, bought 1 SBO. Board Crush: $.90, -3; LY, $.84

·       WU, up $.0375 @ $4.5850; WZ, up $.0375 @ $4.8865.  The funds sold 2 K to close out the week                 

 

CORN/SORGHUM

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·       Consultant: USDA Crop Progress report—U.S. Corn Good/Excellent est. at 60-62% v. 61% last week and 74% last year 

·       ATI Research: Crop Progress—The 5-year average for U.S. corn dough increases approximately 19% from July 30-August 6 to 44%

·       T-storm Weather: A seasonably-warmer period remains probable to unfold for U.S. corn from west to east over Aug. 15-18 as maximums return to the 80s-90s.  A threat for rain exists, especially across the southeast third of corn

·       Export Inspections released at 10 am CDT; Corn, 28.9 mbu needed; 38.9 last week.  Milo—1.5 needed; 8.7 last week 

SOYBEANS/WHEAT

·       Consultant: USDA Crop Progress report—U.S. Soybean Good/Excellent est. at 58-60% v. 59% last week & 72% last year 

·       ATI Research: Crop Progress—The 5-year average for U.S. soybeans setting pods increases approximately 17% from July 30-August 6 to 62%

·       T-storm Weather: Best chance for rain in drier soybean areas of Corn Belt is Wed.-Sun., especially Iowa & Minnesota

·       Export Inspections released at 10 am CDT; Soybeans, 20.1 mbu needed; 17.5 last week

·       Export Inspections released at 10 am CDT; Wheat, 18.0 mbu needed; 21.3 last week

·       ATI Research: 5-year avg. for U.S. spring wheat harvest progress increases approx. 12% from July 30-Aug. 6 to 21%

ENERGY

·       Weaker: CLV17, -$0.46 @ $49.27; EBV, -$0.71 @ $51.71; EBV-QCLV, -.11; RBU, -.0245; NGU, +.008; HOU, -.0233

·       A firmed trend was noted in cash ethanol markets on Friday: Chicago and Dallas added 2; New York and Gulf gained 1 ½; Tampa increased 1; and LA was 3 higher at $1.77 per gallon

·       Ethanol RINs were higher on Friday: 2016’s and 2017’s added 1 ½ to 87-89 

·       The Sep RBOB/Sep ethanol spread lost $.0026 on Friday, closing at +$.07030/gallon, premium ETOH 

  LIVESTOCK/POULTRY                                     

·       Choice boxed beef values fell $1.55 on Friday to $203.61, are down $2.61 vs. last week & the lowest sinceFeb. 27

·       Scattered cash cattle sales were noted on Fri. in Nebraska & Texas at prices generally $1 higher than the prior week

·       USDA mandatory pork carcass cutout value declined 96-cents on Fri. to $95.34, and is down $2.71 vs. last week

·       CME Lean Hog Index eased $0.42 on Fri. to $86.69.  August futures gained $1.25 but are still $3.465 below the index

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