HIGHLIGHTS
· MARKET TREND—Lower: CU: Down $.0225; SU: Up $.0350; WU: Down $.0450; KWU: Down $.02
· MACRO: Equity markets are mostly weaker and are looking to the Fed’s annual Jackson Hole, WY extravaganza for interest rate direction. ASIA: Mixed with the Nikkei up .32%; the Hang Seng, +.26%; Shanghia, off .75%. EUROPE: Lower: FTSE, -.42%; DAX, -.12%; CAC, -.04%. WALL STREET: Futures are lower: DOW, -38; S&P, -4.25; NAS, -9.50. EXTERNALS: The $ Index is . 252 higher @ 94.745; Sep Gold, down $6.80 @ $1,333.70; Sep WTI, down $1.37 @ $47.15
· T-storm Weather: Dry weather prevails in most areas through at leastTuesday. Changes unfold within Tuesday-Thursday when a strong system in south Canada pulls a wave of energy from the Southwest monsoon, triggering scattered thunderstorms from the central/southern Plains through the central Corn Belt (especially Iowa-Missouri); scattered 0.50” to 1.50” amounts. Sharp but brief warming occurs from west-to-east starting today as the approaching system returns maximums to the 80s-90s
· Corn: CU Down $.0225 @ $3.32; CZ Down $.02 @ $3.4175. The funds bought 5 K on Friday
· SB: SU Up $.0350 @ $10.3050; SX Up $.0250 @ $10.07. Funds: sold 5K SB; 4K SBM; 2K SBO. Sep crush, -$.05, $.75; LY: $1.15
· Wheat: WU Down $.0450 @ $4.2250; WZ Down $.0425 @ $4.4050. The funds bought 2 K to close out the week
CORN/SORGHUM
· USDA Crop Progress: Good/Excellent U.S. corn rating could be a point higher or a point lower compared to last week’s 74%, although that would still be above the 69% seen in 2015
· T-storm Weather: A sustained period of near- and below-normal temps affects U.S. corn from Wed.-Thu. forward. A few more thunderstorms affect a larger area within Fri.-Mon., most likely resulting in scattered 0.25”-0.75” amounts
· Export Inspections released at 10 AM CDT; Corn, 55.4 mbu needed; 46.2 last week. Milo—3.7 needed; 4.3 last week
· December 2016 corn futures closed at $3.43 ¾ on Friday; one year ago , December 2015 futures settled at $3.77 ¼
SOYBEANS/WHEAT
· USDA Crop Progress: Good/Excellent U.S. soybean rating could steady vs. last week’s 72% but still above 63% in ‘15
· Export Inspections released at 10 AM CDT; Soybeans, 15.4 needed; 27.4 last week
· T-storm Weather: Additional waves of energy pass beyond Aug. 29 for U.S. soybeans, but the setup does not appear as favorable for well-organized rains given lower humidity levels with time
· November 2016 soybean futures closed at $10.04 ½ on Fri.; one year ago, November 2015 futures settled at $8.89 ½
· USDA Crop Progress: U.S. spring wheat harvest est. at 60-65% vs. approx. 69% last year and 46% for the 5-year avg.
· Export Inspections released at 10 AM CDT; Wheat, 17.9 needed; 23.0 last week
ENERGY
· Lower: CLU16, -$1.37, $47.15; EBV,-1.47; EBV-CLU, $2.25, -$.11; RBU, -.0414; NGU, +.05; HOU, -$.0374
· Cash ethanol markets were notably firmer on Friday: Chicago up 3 7/8; New York gained 3 ¼; Gulf added 4; Dallas increased 3; Tampa climbed 2; and LA was 3 higher at $1.61 per gallon
· Ethanol RINs higher: 2014’s up 3/8 at 85 ¼-87 ¼; 2015’s gained 3/8 to 85 ¼-87 ¼; and 2016’s firmed 3/8 to 85-87
· The Sep RBOB/Sep ethanol spread gained $.0024 on Friday to settle at$.0309/gallon
LIVESTOCK/POULTRY ;
· Choice boxed beef values declined 79-cents on Friday to $200.07 and are $1.12 lower vs. a week ago
· Cattle on Feed: Aug 1 on feed, 101.6% (101.3% avg. est.); July place, 100.3% (100.3%); July Market, 99.3% (99.5%)
· USDA mandatory pork carcass cutout value gained 75-cents on Friday to $73.71 but is still 37-cents lower v. last week
· CME Lean Hog Index was $0.10 lower on Fri. at $67.22. October futures up $1.225 but are $5.295 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather