HIGHLIGHTS
· MARKET TREND: CORN: CZ, Down $.0150; SOYBEANS: SX, Down $.0025; WHEAT: WZ, Down $.01; KWZ: Down $.0025
· Despite a less than stellar report from Wal-Mart, Asia closed higher overnight with Shanghai leading the way with a 2.3% gain; the Hang Seng followed 2% higher and the Nikkei rose 1.15%. Support was said to be come from ideas the Fed will be in no hurry to implement a rate hike. Europe is up this morning for much the same reasoning: FTSE, +1%; CAC 40, +1.4% and DAX, +1.6%. And, U.S. pre-markets suggest a positive start: DOW futures, +110; S&P, +13 ¾; NAS, +32 ¾. Outside markets: energies are mixed; gold is up 4$.50 at $1,184.10 and the $ Index is trading .15 higher at 94.110
· T-Storm Weather: Little or no rain aids U.S. corn / soybean harvesting and wheat planting through at least Mon.-Tue. Some rain follows with best chances in southern HRW wheat and all SRW wheat areas. In Brazil, hot and dry upper-level high pressure likely dominates into late-month, marking a delay to the onset of the rainy season and likely limiting early planting. Dryness in Center-West and Southeast Brazil means the rainy season will begin at least 2 weeks late. Otherwise, after some rain today, mainly dry and cool weather recur in Argentina.
· Dec Corn Down $.0150 at $3.7750; Mar Down $.0125 at $3.8850. The funds sold t 6 K at mid-week
· Nov SB Down $.0025 at $9.1025; Jan Steadty at $9.25. Fund activity: sold 3 K SB, 2 K SBM and even on SBO
· Dec Wheat Down $.010 at $5.0725; Mar Down $.0075 at $5.150. The funds sold back the 6 K they bought Tuesday
CORN/SORGHUM         ;
·   South American corn weighing on U.S. sales to the Far East/Western Hemisphere, down 43% & 50%, respectively
· U.S. corn high-priced? Currently at an $11 to $18 premium to Brazil and Argentine values
· Slight increase from last week’s 950 K bpd ethanol production rate expected this morning
· Harvest progress—2 extremes with ECB running 10-12% ahead of average; WCB lagging behind by like amount
· Brazil’s summer corn crop is now 48% planted, 10 points ahead of the 2014 pace
· Wednesday’s weaker market attributed to the absence of fresh bullish news and an active harvest
· Trade commenting farmer selling seems to be more prevalent in soybeans than in corn
SOYBEANS/WHEAT
· September NOPA crush released at 11 am CDT: 128.8 is the average estimate, nearly 29 mbu more than last year
· Trade pegs NOPA oil stocks at 1.403 billion pounds, or down about 80 from August and some 50% larger than LY
· YTD HRW exports down 27% at 85 mbu; USDA is for a more modest annual decline of 10%/28 mbu
· U.S. soybean export demand: sales to Asia/Mid-East excluding are only 1/3rd of the 14/15 total
· Profit-taking tempered the positive effects of a not unexpected soybean sale to China
ENERGY
· Mixed: CLX15, -$0.50, $46.12; EBX,-$0.18; EBX-CLX, $2.84, +$.33; RBX, +$.0143; NGX, +$.011; HOX, +$.0016
· EIA Petroleum estimates (API): crude oil, +2.6 mb (+9.3); gasoline, -0.4 (-5.0); distillates, -0.6 (-2.7)
· Cash ethanol markets were mixed with only minor changes: Both NYC and the Gulf lost a penny to the $1.6225-$1.63 range; Chicago slipped 8/10’s of cent; Dallas and Tampa were botha ½ cent firmer; LA held steady at $1.67 ½
· Ethanol RINs, unchanged/slightly weaker: 2013’s & 2014’s steady: 35 ¼-35 ¾; 35 ¾-36 ½; 2015’s up 1/8 to 35 ¼ -35 ¾
· The Nov RBOB/Nov Ethanol inverse narrowed in 2+ cents to -$.2037 per gallon
LIVESTOCK/POULTRY <wbr>   ;
· Choice boxed beef values gained $3.16 on Tuesday to $208.46 and are $4.29 higher vs. last week
· October 2015 live cattle futures closed at $132.425 on Tuesday, which was $7.30 higher vs. the previous Tuesday
· On Tuesday, USDA mandatory pork carcass cutout fell 37-cents, but at $88.41 is $2.39 higher vs. last week
· CME Lean Hog Index firmed $0.08 to $74.85. October futures up $0.55 at $74.85 and is even with the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather