HIGHLIGHTS
· MARKET TREND—Higher--CZ: Up $.0075; SX: Up $.0850; WZ: Up $.02; KWZ: Up $.01
· MACRO: Fed meeting Wednesday; no rate hike likely; BOJ expected to expand monetary easing in tomorrow’s meeting.
· ASIA: higher—Nikkei, +.70%; Shanghai, +.79%; Hang Seng, +.92%. EUROPE: higher with DAX, +.75%; FTSE, +1.4%; CAC, +1.4% WALL STREET: Futures are higher—DOW, +79; S&P, +8.50 NAS, +18.25.75. EXTERNALS: $ Index, -.250 @ 95.855; Gold, +$7.00 @ $1,313.20; Oct Crude, +$.63 @ $43.66/barrel.
· T-Storm Weather: Unseasonable warmth continues through Fri.-Sat. in most U.S. production areas, keeping maximums in the 80s-90s and minimums in the 50s-60s. Central and southern growing areas stay dry over the next five to seven days, aiding planting and harvesting in at least the southeast third of the Corn Belt, Delta and southern Plains. Sharply wetter weather occurs to the north within northern third of the Corn Belt, especially Tue.-Wed.; 1.00”-2.00” in northern Iowa, Minnesota and Wisconsin
· Corn: CZ Up $.0075 @ $3.3775; CH Up $.0075 @ $3.478. The funds bought 10 K on Friday
· SB: SX Up $.0850 @ $9.7450; SF Up $.0875 @ $9.80. Funds: Bought 7 SB, 5 SBM; sold 2 SBO. Oct crush, $.76 -$.05; LY: $0.98
· Wheat: WZ Up $.02 @ $4.0525; WH Up $.01 @ $4.26. Fund buying totaled 6 K to close out the week
CORN/SORGHUM
· December 2016 corn futures closed at $3.37 on Fri.; +$0.21 ½ from the contract low settlement of $3.15 ½ on Aug. 31
· USDA Crop Progress: Good/Excellent U.S. corn rating could be a point higher or a point lower vs. last week’s 74%; regardless, it would be above 68% in 2015. Sorghum harvest est. at approx. 28% v. 25% last year & 5-year avg. of 28%
· T-storm Weather: A system moves through the central U.S. Sat.-Tue., producing widespread rain of 1.00”-2.00” in the northern Plains and 0.50”-1.50” in most other areas, deteriorating conditions for corn harvesting
· Export Inspections released at 10 AM CDT; Corn, 41.4 mbu needed; 52.9 last week. Milo—4.9 needed; 2.5 last week
· Brazil consultant Safras & Mercado projecting 2016/17 Brazil corn crop at 92.3 MMT with planted acreage up 1.5%.
SOYBEANS/WHEAT
· USDA Crop Progress: Good/Excellent U.S. soybean rating could steady vs. last week’s 73% but still above 63% in ‘15
· Export Inspections released at 10 AM CDT: Soybeans, 38.1 mbu needed; 34.9 last week
· T-storm Weather: Sharply cooler temps develop for some U.S. soybeans over the first half of next week as minimums dip into 30s-40s. Potential frost within central/northern Plains and/or northwest Corn Belt Sep. 25-28
· T-storm Weather: Dry weather this week for S. American wheat will be followed by improving rain chances next week
· Export Inspections released at 10 AM CDT: Wheat, 17.3 needed; 26.5 last week
ENERGY
· Mixed: CLV16, +$.63, $43.66; EBX,+$0.54; EBX-CLV, $2.644, -$.10; RBV, -.0117; NGV, -.03; HOV, +$.0121
· Cash ethanol markets were higher on Friday: Chicago up 7/8; New York gained 1 ½; Gulf firmed a penny; Dallas and Tampa added 3; and LA was 2 higher at $1.70 ½ per gallon
· Ethanol RINs weaker: 2014’s down 7/8 at 86 ¾-88 ¼; 2015’s off 7/8 at 86 ¾-88 ¼; and 2016’s 7/8 lower at 86 ½-88
· The Oct RBOB/Oct ethanol spread drifted $.0204 lower to -.04640/gallon
LIVESTOCK/POULTRY   ;
· Choice boxed beef values were 7-cents lower on Friday at $186.20, and are down $1.70 compared to a week ago
· Moderate to fairly active cash cattle trade developed on Fri.; prices in the South noted at $110—up $5 vs. prior week
· USDA mandatory pork carcass cutout value was 39-cents lower on Fri. at $79.14, and is down $2.23 vs. last week
· CME Lean Hog Index $0.54 lower on Fri. at $63.05. October futures up $0.325 but are still $7.575 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather