HIGHLIGHTS
· MARKET TREND— Mostly higher--CZ: Up $.0125; SX: Up $.0025; WZ: Down $.0225; KWZ: Up $.0025
· MACRO: More earnings to be released today—Goldman Sachs, J&J, Yahoo. ASIA: Higher-- Nikkei, +0.38%; Shanghai, +1.38%; Hang Seng, -+1.55%. EUROPE: Higher--FTSE, +0.98%; DAX, +1.25%; CAC, +1.24%. WALL STREET: Pre-markets are higher--DOW, +73; S&P, +11.00; NASDAQ, +27.75. EXTERNALS: $ Index, -.263 @ 97.615; Gold, +$6.60 @ $1,263.20; Nov Crude, +$0.52 @ $50.46
· T-Storm Weather: Central U.S. temperatures fluctuate within a mild to unseasonably mild range over the next 10 to 14 days, including some heat today followed by some 90s returning this weekend and next week. Rain this week primarily focuses on the northern / eastern Corn Belt and Delta within Wed.-Fri. when a strong wave and cold front produce 0.50” to 1.00” or rain. That will be followed by five days of drying before a new system potentially passes later next week
· Corn: CZ Up $.0125 @ $3.5525; CH Up $.0125 @ $3.6525. The funds opened the week buying 5 K
· SB: SX Up $.0025 @ $9.7850; SF Up $.0050 @ $9.8650. Funds: Bot 6 K SB, 7 SBO; 4 SBM. Z/X crush, $.79, +$.02; LY: $1.03
· Wheat: WZ Down $.0225 @ $4.2150; WH Down $.02 @ $4.40. The funds bought an estimated 2 K on Monday
CORN/SORGHUM
· Corn: Mature stage pegged at 97% vs. 97% for last year & 94% avg.; harvest at 46% vs. 54% last year & avg. of 49%. Good/Excellent of 74% is up a point v. last week (68% in ‘15). Sorghum: Harvest at 57% v. 58% last year & 49% avg.
· ATI Research: U.S. corn balance sheet; 16/17 carryout estimated at 2.433 bbu
· ATI Research: U.S. sorghum balance sheet; 16/17 carry-out pegged at 37 mbu
· T-storm Weather: Several rains affect South America through next week, most likely resulting in excessive totals for 10% to 20% of corn in Argentina & Brazil (namely from recent & upcoming rains in N. Argentina & Rio Grande do Sul)
SOYBEANS/WHEAT
· USDA pegs U.S. soybean dropping leaves at 96% vs. 95% last year and the avg. of 94%; harvest at 62% vs. 73% in 2015 and the 5-year avg. of 63%. Good/Excellent crop ratings of 74% are steady vs. last week and above 64% in 2015
· ATI Research: U.S. soybean balance sheet; 16/17 carry-out is estimated at 352 mbu
· T-storm Weather: Significant rain occurs in northern soybean areas of Brazil through next week; amounts of 1.00” to 2.00” are most likely within Center-West production areas, especially starting Thursday-Friday
· ATI Research: U.S. HRW wheat balance sheet; 16/17 carryout projected at 602 mbu compared to 446 last year
· T-storm Weather: Light rains affect wettest wheat areas of eastern Australia over next 7-10 days; 0.67”-1.33” total
ENERGY
· Higher: CLX16, +$.52 @ $50.46; EBZ, +$.49; EBZ-CLX, $1.55, -$0.03; RBX, +$.0108; NGX, +$.035; HOX, +$.0134
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· A steady to weaker trend was evident in cash ethanol markets on Monday: Chicago down 3/8; New York unchanged; Gulf off 1 ¾; Tampa eased 1; Dallas declined 1 ¼; and LA was ½ lower at $1.78 per gallon
· Ethanol RINs higher: 2014’s up 1 to 92 ¾-93 ¾; 2015’s firmed 1 to 92 ¾-93 ¾; and 2016’s increased 1 to 92 ½-93 ½
· The Nov RBOB/Nov ethanol inverse was little changed on Monday, up $.0012 to-0.08760/gallon
LIVESTOCK/POULTRY    
·   Choice boxed beef values increased 69-cents on Monday to $182.55, but are $1.45 lower vs. a week ago
· 5-Area Weekly Weighted Average Steer price down $3.31 v. last week to $97.59/cwt and is $35.36 lower vs. last year
· USDA mandatory pork carcass cutout was 95-cents higher on Monday at $73.57, and is up 73-cents vs. to last week
· Current nearby board hog crush value is $20.56/cwt vs. last week’s $20.38, last month’s $25.15 & last year’s $37.12
Sources: Bloomberg, Dow Jones, AP, T-storm Weather