HIGHLIGHTS
· MARKET TREND—Slightly lower: CU: Down $.01; SU: Down $.0075; WU: Down $.0125; KWU: Steady
· MACRO:Falling oil prices and worries over easing demand have global equity markets mixed this morning. ASIA: The Hang Seng closed up .39%; the Nikkei slipped .18% and Shanghai fell .53%. EUROPE: The FTSE is off .32% while the DAX (+.64%) and the CAC (+.71%) are both higher. WALL STREET: Futures indicate a positive opening—DOW, +53; NAS, +13.4; S&P, +4.75. EXTERNALS: The $ Index is .177 higher @ 95.785; Sep Gold is $.30 weaker at $1,345.00 & Sep WTI is nearly unchanged. Deliveries: 0 SBM; 88 SBO; 0 SB; 0 ETOH
· T-storm Weather: Very warm and hot weather affect most areas through today; maximums in 90s, minimums around 70. One or two heavy thunderstorms occur within northwest half of corn & soybeans through today. A cool front breaks heat Fri.-Sat., reverting maximums to 70s-80s & minimums to the 60s through early next week. The front & a quasi-tropical system merge on Fri., producing widespread rain across southeast half of corn & beans Sat.-Sun.; 0.50”-1.50” central & 1.25”-2.75 south & east
· Corn: CU Down $.01 @ $3.2150; CZ Down $.0125 @ $3.3175. The funds bought 3 K Wednesday
· SB: SU DN $.0075 @ $9.9775; SX DN $.0175 @ $9.8050. Funds: sold 3K SB, 2K SBM, bot 3K SBO. Sep crush, +$.05, $.84; LY: $1.03
· Wheat: WU Down $.0125 @ $4.2050; WZ Down $.0075 @ $4.4075. The funds bought an estimated 4 K Wednesday
CORN/SORGHUM
· Export Sales to be released at 7:30 AM CDT. Trade expects 8-16 mbu for 15/16 corn; 20-28 for 31/43
· T-storm Weather: A warmer period resumes for the U.S. Corn Belt Aug. 16-17, but occurs in advance of another system that is probable to quickly revert temperatures to near-normal levels after a few days
· ATI Research: 5-year avg. shows approx. 9% U.S. corn matures to dent stage fromAug. 7-14; would put 2016 at 18%
· Consultant: Reports in Brazil of disastrous safrinha (double-crop) corn yields; additional reduction in crop size possible
· Ethanol grind: 1,018,000 barrels/day for week end Aug. 5—up 1.4% vs. last week and 5.5% higher vs. last year
SOYBEANS/WHEAT
· Export Sales report. Trade expects 7-15 mbu for 15/16 soybeans; 70-92 for 16/17; soymeal, 40-200 K MT for old- crop and 50-250 new-crop; soyoil, 5-20 K MT for old crop and 5-15 for new-crop
· T-storm Weather: Following widespread rain this weekend, a drier period follows for U.S. Midwest soybeans Aug. 14-18. This is likely to be followed by scattered rain late next week or weekend as next period of seasonableness begins
· Export Sales report. Trade expects 13-20 mbu for 16/17 all wheat
· T-storm Weather: A drier period is forecast across U.S. HRS wheat areas Friday-Sunday
ENERGY
· Mostly higher: CLU16, +$.03, $41.76; EBV,+0.128; EBV-CLU, $2.41, +$.07;RBU, -.0010; NGU, +.021; HOU, +$.0106
· A mixed trend was noted in cash ethanol markets on Wednesday: Chicago off ¼; New York eased ¾; Gulf increased ¼; Tampa steady; Dallas added ¼; and LA was ½ lower at $1.56 ¼ per gallon
· Ethanol RINs off sharply: 2014’s down 5 ½ to 75 ¼-81 ¼; 2015’s slid 5 ½ to 75 ¼-81 ¼; & 2016’s dipped 5 ½ to 75-81
· The Sep RBOB/Sep ethanol inverse increased $.0398 to -$.11560/gal yesterday
LIVESTOCK/POULTRY ; ;
· ; Choice boxed beef values firmed 98-cents on Wednesday to $200.87, and are $1.67 higher compared to last week
· Since July 29, choice boxed beef has increased $3.30 (1.6%)
· USDA mandatory pork carcass cutout value was up 18-cents Wed. at $75.64, but is still 44-cents lower vs. a week ago
· CME Lean Hog Index was $0.63 lower on Wed. at $68.79. August futures up $0.20 but are still $1.665 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather