HIGHLIGHTS

·        MARKET TREND:  Higher--CZ: Up $.0350; SX: Up $.0675; WZ: Up $.0450;  KWZ: Up $.0250

·        MACRO:  Choppy trade with a negative bias as investors fret over declining Central Bank stimulus efforts. Today will be the largest day of the U.S. earnings season—Ford, UPS, Amazon, etc. all out.  ASIA:  Nikkei, -.32%;  Shanghai, -0.13%; Hang Seng, -0.83%.   EUROPE:  FTSE, -0.03%; DAX, -0.06%; CAC, -0.26%.  WALL STREET: Futures are however, higher--DOW, +28; S&P, +3.50; NASDAQ, +8.25.   EXTERNALS:  $ Index, -.046 @ 98.56; Gold, +$4.10 @ $1,270.70;  Dec Crude, +$.27 @ $49.45

·        Weather: The forecast looks slightly wetter for the US Midwest as rains moved through SE MN and NE IA into WI and MI. Next week should be more favorable for field activity. SW Parana & SE Paraguay had heavy rains the past 36 hours, curbing planting and raising concerns over wheat quality. Recent Argentine rains  as well as more forecast into early November may also be affecting wheat quality there.

·        Corn: CZ Up $.0350 @ $3.5750; CH Up $.0350 @ $3.6675.  The funds bought 15 K Wednesday      

·        SB:  SX Up $.0675 @ $10.1675; SF Up $.07 @ $10.28.  Funds bot 10 SB, 8 SBM, sld 3 SBO. Z/X crush, $.85, +$.04; LY: $0.86

·        Wheat:  WZ Up $.0450 @ $4.16;  WH Up $.0350 @ $4.3550.  The funds bought 7 K yesterday       

CORN/SORGHUM

·        Corn Export Sales released at 7:30 CDT:  35-47 expected; 29.8/week needed

·        Milo Export Sales released at 7:30 CDT:  NA expected; 4.6/week needed

·        EIA pegged ethanol production at a 991 k bpd, down 7; stocks increased 877 K to 19.9 mb, trade was 18.8-19.2

·        The USDA expects feed/residual use to reach 5.65 bbu this year which at 59.2 bu/GCAU would be the highest since 61.6 in 07/08

·        Wednesday’s CZ 16 close of $3.54 was $.22 below the year-ago settlement price for CZ15

SOYBEANS/WHEAT

·        Soybean Export Sales released at 7:30 CDT: 55-92 expected; 19.1/week needed

·        SBM/SBO Sales:  200-400 SBM expected, 160/wk needed; 8-30 SBO expected, 15.2/wk needed

·        Wheat Export Sales released at 7:30 CDT: 13-20 expected; 12.8/week needed

·        SX16 closed up 16  ¼ at $10.10 and this was a 2-month high:  $10.05 ¼ on 8/24

·        ATI Research:  Per capita pork consumption in SE Asia has been growing 13% annually, far surpassing China’s 9% growth rate.  More potential?  The region has ½ of the population of China and consumes 80% less per capita

ENERGY

·        Firmer: CLZ16, +$.27 @ $49.45; EBZ, +$.38; EBZ-CLZ, $0.92, +$0.12; RBX, +$.0141; NGX, -$.011; HOX, +$.0109 

·        Cash ethanol markets were mixed at mid-week: NY gained $.02 to $1.71; Dallas was ¾ higher at $1.69 ¼; Tampa moved up a ½ cent; LA eased a ½ to $1.79; the Gulf was ¼ higher at $1.68 and Chicago was also ¼ highere at $1.65 ½ 

·        Ethanol RINs saw 2014’s and 2015’s each lose a ½ to 91 ½ -92 ½; 2016’s & 17’s were steady at 91 ¾-92 ¾ & 91 ½ -92 ½

·        The Nov RBOB/Nov ethanol inverse gained $.0194 to -0.11890/gallon on Wednesday       

  LIVESTOCK/POULTRY             ​                         ​              

·   ​     Choice boxed beef values increased $0.24 on Wednesday and are up $3.87 vs. a week ago

·        Fed Cattle Exchange (internet trade) reported cattle sales $1 to $3 higher at $103 to $105 live on Wednesday

·        USDA mandatory pork carcass cutout gained 18-cents on Wednesday to $72.35 and is 39-cents higher vs. last week 

·        CME Lean Hog Index $0.03 higher on Wed. at $51.70.  December futures $0.425 lower and are $7.50 below the index 

Sources: Bloomberg, Dow Jones, AP