HIGHLIGHTS

·       TRENDS—Mostly firm: CU, -$.0225; SU, +$.0050; WU, +$.05; KWU, +$.0275

·       What caught my eye:  Chinese soybean buying expected to continue at a brisk pace through fall as reports indicate SBM inclusion in rations is up as much as 25% for the pork section as well as the poultry industry.  Hence, the 5% gain in yr to yr crush    

·       Stock indices are slightly firmer with no real earth-shaking news out there this morning

• Asia—Mostly lower:  Nikkei, +0.26%; Shanghai, -1.24%; Hang Seng, -0.74%
• EUROPE: A little firmer—DAX, +0.23%; FTSE, +0.06%; CAC, +0.10%
• WALL STREET: Futures, up --DOW, +39; S&P, +4.5; NAS, +12.25
• EXTERNALS: Oct crude, -$0.43 @ $42.69; Gold: -$17.10 @ $1,996; Sep $ Index, -.004 @ 92.255
• T-storm Weather®: areas of high pressure limit rainfall over the next five to seven days and increase the coverage of 14-day topsoil and 30-day subsoil dryness, despite isolated showers and thunderstorms, and some scattered thunderstorms in / near MN within Fri.-Sun.  Temps turn much warmer from west to east through Fri. as highs return to the 80s-90s for several day.  A cool front passes around Mon. to revert temps to near-normal levels, also triggering minor showers and thunderstorms
• CU, dn $.0225 @ $3.2475; CZ, dn $.02 @ $3.3975.  Funds sold 7 K as Monday was perhaps overdone to the upside                           &nbs​p;                 
• SU, up $.0050 @ $9.1250; SX, up $.0050 @ $9.1425.  Funds: Sold 2 K, 3 SBM, bot 3 BO.  Board crush: $0.87(U/U), -1; LY, $1.04
• WU, up $.05 @ $5.1250; WZ, up $.0475 @ $5.23.  In wheat, the funds were sellers of an estimated 5 K                    

CORN/SORGHUM

·       T-storm Weather®: next week, at least one tropical storm or hurricane is expected to affect the Gulf of Mexico and / or Atlantic Ocean, which is initially unfavorable for central U.S. rainfall because it limits influxes of tropical humidity

·       ATI Research: bias on near-term U.S. corn exports has moved up to a broad 35 to 45 mbu per week range

·       U.S. Energy Information Administration (EIA) report scheduled to be released at 9:30 am CDT

·       T-storm Weather®: little to no rain affects corn in Ukraine near-term, as drought continues & temps stay very warm

SOYBEANS/WHEAT

·       T​-storm Weather®: next week, at least one tropical storm or hurricane is expected to affect the Gulf of Mexico and / or Atlantic Ocean, which is initially unfavorable for central U.S. rainfall because it limits influxes of tropical humidity

·       ATI Research: near-term exports of U.S. soybeans are projected to range from 30 to 40 mbu per week

·       T-storm Weather®: some rains affect wheat in Australia near-term, but a drier period develops with time

·       ATI Research: near-term exports of U.S. wheat are projected to range from 16-20 mbu per week

ENERGY

·       Mixed:  CLV20, -$0.43 @ $42.69; EBV, -$0.45 @ $45.01; EBV-QCLV, -0.02; RBV, -.0256; NGV, +.024; HOV, -.0186

·       EIA Report Estimates (API): crude -2.7 (-4.3); Gasoline -1.2 (+1.1); Distillates -0.5 (-1.0).  Estimates for ethanol production avg. 0.919 mbpd (range: 0.898-0.945).  Avg. est. of ethanol stocks: 19.706 mb (range: 19.000-20.300)

·       Chicago ethanol gained $.0285 to $1.3385 on Tuesday; basis, mixed: NYC, +$.0015 @ +$.1165; Gulf, +.0065 @ +$.1015; Dallas, -$.0160 @ +$.0815; Tampa, -$.006 @ +$.1865; LA, -$.0660 @ +$.1215

·       Ethanol RIN values, unch to firmer: 2019’s, unch @ 38-41 ;2020’s: +1.50 @ 42 -45 ½                                           &n​bsp;                       &nb​sp;                       &nbs​p;                        &nbs​p;                        ​;              

·       The Sep RBOB/August ethanol spread is trading -$.0309 this morning, off ,0314 and premium to ethanol

LIVESTOCK/POULTRY                     &nb​sp;                 

• Choice boxed beef was $3.60 higher on Tuesday at $220.86, and is up $12.78 versus last week  
• Light cash cattle trading occurred on Tuesday at $106 in Texas and $106 to $107 in Kansas
• The mandatory pork carcass cutout value fell $0.32 on Tue. to $73.50, but is still up $3.73 compared to a week ago
• CME Lean Hog Index added $0.34 on Tue. to $54.81.  August futures plummeted $2.100 & are $3.385 below the index

Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather®