HIGHLIGHTS
· MARKET TREND: CORN: CZ, Steady; SOYBEANS: SX, Up $.0350; WHEAT: WZ, Up $.0350; KWZ: Up $.0325
· Rising energy prices are dragging along equity markets around the globe. Nov crude is up 85-90 cents this morning. Shanghai closed up .5%; the Nikkei gained .75% and the Hang Seng soared 3.1%. Early trade in Europe finds the FTSE .3% to the plus-side; the CAC 40 is up .5% and the DAX, +.84%. Pre-Markets look positive: DOW futures, +8; S&P500m +9.5 and the NAS, +27.7. API data suggested shale oil output is on the wane. Externals: $ Index, +.012; gold, +$1.30 @ $1,147.70
· T-storm Weather: An unusually warm and dry period recurs over the next 10 days across the central U.S. as maximums often reach the 60s, 70s, and 80s with 90s at times in western cattle and HRW wheat areas of the central and southern Plains. Therefore, corn / soybean harvesting and winter wheat are likely to accelerate through at least mid-month. In South America, a series of cool fronts cause frequent thunderstorms to form heavy rain in South Brazil over the next 10 days, likely resulting in pockets of field flooding after above-normal totals in recent weeks
· Dec Corn Steady at $3.9825; Mar Steady at $4.0850. The funds were again buyers of 5 K on Tuesday
· Nov SB Up $.0350 at $8.9025; Jan Up $.03 at $8.95. Fund activity: bought 3 K SB, 2 K SBO and & even SBM
· Dec Wheat Up $.0350 at $5.2975; Mar Up $.0425 at $5.3725. The funds were buyers of 6 K on Tuesday
CORN/SORGHUM      
·   USDA WASDE on Oct. 9: Avg. trade guess 2015 U.S. corn crop: 13.482 bbu (range 13.252-13.798) and 13.585 in Sept.
· ATI Research: Near-term U.S. corn exports are forecast to average 25-30 mbu per week; sorghum pegged at 6-8 mbu
· December 2016 corn futures closed at $4 19 ¼ on Tuesday, the highest settlement price for the contract since July 21
· Ethanol margins: $0.23 per gallon--up vs. $0.13 last week but below $0.47 last year. EIA report at 9:30 AM CDT
· T-storm Weather: Most of the central U.S. receives less than 0.25” of rain over the next 10 days
SOYBEANS/WHEAT
· USDA WASDE on Oct. 9: Avg. trade guess 2015 U.S. soybean crop: 3.911 bbu (range 3.830-3.975) and 3.935 in Sept.
· ATI Research: Weekly U.S. soybean exports are expected to average 45-55 mbu over the next 4 weeks
· T-storm Weather: Thunderstorms impact northern Brazil from this weekend forward, breaking the dry season and improving conditions for soybean planting in Goias and Mato Grosso
· ATI Research: U.S. all wheat exports forecast to continue to average 20-25 mbu per week near-term
· T-storm Weather: Temps average much cooler than normal by 5-10 degrees in Argentina over the next 10 days. Light frost cannot be ruled out in wheat areas of southeastern Buenos Aires, but temps are unlikely to dip below freezing
ENERGY
· Higher: CLX15, +$0.88, $46.40; EBX,+$0.77; EBX-CLX, $3.29, -$.10; RBX, +$.0018; NGX, +$.001; HOX, +$.0163
· EIA estimates: crude, +2.2 (API: -1.2); Gasoline, +0.5 (+4.7); Distillates, -0.8 (-2.9)
· Cash ethanol markets were steady to slightly higher on Tuesday: Chicago added 1 ¼; New York and Tampa up 1; Gulf and Dallas steady; and LA was 1 higher at $1.76 ½ per gallon
· Ethanol RINs weaker: 2013’s down ¾ to 32 ¾-33 ¾; 2014’s off ¾ to 33 ¼-34 ¾; & 2015’s declined ¾ to 32 ¾-33 ¾
· The Nov RBOB/Nov Ethanol inverse lost nearly 6 ½ cents Tuesday, settling to -$.1648/gallon
LIVESTOCK/POULTRY ;
· Choice boxed beef values increased 20-cents on Tuesday, but at $204.17 are still $5.14 lower compared to last week
· Tuesday’s slight gain in choice boxed beef values ended a string of 18 consecutive days of lower prices
· On Tuesday, USDA mandatory pork carcass cutout eased 40-cents, but at $86.02 is still up $1.34 vs. the prior week
· CME Lean Hog Index $0.37 higher at $73.75. October futures up $0.60 to $73.60 but is $0.15 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather