HIGHLIGHTS
· MARKET TREND—Mostly higher: CU: down $.0025; SU: up $.0075; WU: up $.0350; KWU: up $.0450
· MACRO: Global markets are generally higher this morning as fear over North Korea’s missile launch subside. ASIA—Mixed: Nikkei, +0.74%; Shanghai, -0.07%; Hang Seng, +1.19%. EUROPE: Firm: DAX, +0.50%; FTSE,+0.31%; CAC, +0.36%. WALL STREET—Futures are higher—DOW, +27; S&P, +2.00; NAS, +10.50. EXTERNALS: $ Index: +.231 @ 92.190; Sep Gold: -$2.80 @ $1,310; Oct crude: -$.28 @ $46.16/bl.
· T-storm Weather: The latest GFS model calls for warming temperatures through next week. A strong cold front will pass through early in the period and while temperatures will plummet, a killing frost is not expected as minimums in most areas stay 40+F. The area from Houston to Corpus Christi can expect another 5+” of unneeded rainfall to an area already reeling from Hurricane Harvey as another tropical system may develop. Some see locally heavy amounts of 5-10” for some parts of Louisiana
· CU up $.0025 @ $3.337525; CZ, steady@ $3.4875. The funds were again sellers, 3 K on Tuesday
· SU, up $.0075 @ $9.3150; SX, up $.0275 @ $9.3250. Funds: Sold 4 SB, even SBM, sold 2 SBO. Board crush: $.94,-1 LY, $.85
· WU, up $.0350 @ $4.0625; WZ, up $.0125 @ $4.3025. The funds bought 1 K on Tuesday
CORN/SORGHUM
· CZ hits $3.47 on Tuesday, surpasses contract low of $3.59 ½ on 8/31/2016
· ATI increases corn yield 4/10 bpa to 166.6; Cordonnier ups his estimate1.0 bpa to 166.0
· ATI carry-out forecast boosted 59 mbu to 2.069 billion ; the USDA is 204 million higher at 2.273 bbu
· Not a good sign? Unshipped old/new crop corn sales to Japan, S Korea & Taiwan stand at 64 mbu as of mid-August. That’s a 60% decline from LY at this time and WELL BELOW 2012’s same date total of 105 mbu
SOYBEANS/WHEAT
· ATI soybean yield .4 bpa higher at 47.8; Cordonnier increases forecast ½ bpa to 48.0
· SX18/CZ18 has improved sharply since 2.27:1 in early June, to 2.45 currently
· ATI Research: HRW S&D estimated at 449 mbu, against 593 for 16/17
· ATI Research: 17/18 crush increased 25 mbu to 1.950 bbu (USDA 1.940) on expectations for higher biodiesel
· T-storm Weather: several systems will bring 1-2” of rain for much of Argentina’s wheat area the next 10 days, just as the crop reaches the reproduction stage—quality implications
ENERGY
· Weaker: CLV17, +$0.28 @ $46.16; EBV, -$0.39 @ $51.61; EBV-QCLV, -.11; RBV, +.0023; NGV, -.018; HOU, +.0032
· EIA Petroleum Stocks Estimates (API): Crude Oil, -1.8 (-5.8); Gasoline, -1.5 (+0.5); Distillates, -0.6 (-0.5)
· Cash ethanol markets were mixed on Tuesday: Chicago was again higher, up 1 1/8 to $1.3 7/8’s; Dallas & Tampa were of a ½ cent; NYC gained a 1 to $1.58; the Gulf was ¼ weaker at $1.60 as was LA to $1.72
· Ethanol RINs eased 7/8’s with 2016’s and 2017’s both in an 86-87 ¼ cent range
· The Sep RBOB/Sep ethanol spread increased $.0720 on Wednesday to +$.26930/gallon
LIVESTOCK/POULTRY  
· Livestock/Poultry comments will resume on Thursday
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather