HIGHLIGHTS

·      cited; Wheat, ½ to 1 Higher    Market Trend—Corn, Up 1; Soybeans, 13-14 Higher, possible commercial buying   

·         Federal Reserve policy uncertainty, a still somewhat weak U.S. economy and the potential for government gridlock are all vying for the top spot in impacting the financial markets this morning.  Asian markets were mostly lower overnight; China was mixed while early trading in Europe is to the plus side.  Dow futures are 7 to the plus side; the S&P is a ½ point lower and Nasdaq futures are currently up 5.   Outside markets:  gold, down $10.40; energies are mostly weaker and the $ Index is up .119 at 80.69

·         T-Storm’s noon-time comments called for no change in the U.S. weather pattern with readings fluctuating the next 10-14 days with a bias towards the slightly warmer side and little or no chance for a killing frost.  The weekend should bring some showers to the vicinity of the Corn Belt and while the cool front’s passing causes some brief harvest delays, this will quickly be followed by several days of dry weather with the development of a surface level high pressure system.  Mixed reports on South America—T Storm says rain is definitely needed in SW Arg corn and wheat areas; some early bean planting but the general conclusion that the region is still typically dry with a moderate rain chance possible for 9/29-10/1 period

·         Dec Corn Up $.01 at $4.5425; Mar Corn Up $.0125 at $4.6725.  The funds bought 2 K yesterday 

·         Nov Soybeans Up $.1350 at $13.2150; Jan SB Up $.1325 at $13.2375.  Funds:  sold 6 K SB, 3 K SBM and 2 K SBO

·         Dec Wheat Up $.01 at $6.5450; Mar Wheat Up $.0050 at $6.6450.  Funds were estimated to have bought 3 K Monday

CORN/SORGHUM

·     &nbs​p;   Corn maturity reached 40% in the latest week, at the high end of expectations but well below 86% in 2012 & the 5 year of 55%

·         Corn harvest was 7% complete, versus 5-10% expected and 37% LY and the average of 16%

·         Corn ratings improve 1 to 54%, ATI yield estimate rises 1/10 bpa to 156.8

·         Gulf tributary states 50% harvested:  425 mbu versus 471 LY with crop some 53% larger at 858 mbu

·         Corn exports total 17.9 million; near the low end of expectations and versus 24/week needed. ATI Research lowers SON estimate from 330 to 275 million on competing exporter supply concerns

SOYBEANS/WHEAT

·         Bean ratings hold steady at 50% G/E; ATI yield estimate up 4/10’s bpa to 41.7; crop increases 30 mbu to 3.156 bbu

·         U.S. harvest 3% complete vs 21% LY and 9% average; ATI estimates Gulf tributary harvest at 50 mbu, below 87 LY 

·         Soybeans dropping leaves for week end Sept. 22 likely to be 45-50%--well behind last year’s 71% and the 56% avg

·         Spring wheat harvest up 3 points to 93%, matches 5 year avg; winter wheat 23%  planted vs 24% LY & 23% avg

·         Another strong wheat of wheat exports, 42.3 mbu; beans at 16.8 beat/surprises trade expecting only 2-4 million; ATI Research boosts SON U.S. export program by 60 mbu to 608 (620 LY)

ENERGY

·         Energy markets generally weaker:  QCLX13,  -$.41 to $103.18; QRBX, -0.0100; QNGX, +$.007 and QHOX, -$.0154

·         Continued volatility in spot ethanol:  Chicago falls 35+ cents to $2.2850; NY and the Gulf are 10 ¼ to 12 cents lower; Tampa falls 4 ½ while Dallas is a penny weaker and LA is barely off a ¼ cent.  Source:  OPIS

·         RINs: 2012’s slip a ½ cent to a 54-55 cent range; 2013’s were down a penny to 55-56; 2014’s were down 2 ½, 55-57

·         The November RBOB/ethanol spread settled at $.9067, yesterday, about ¾’s of a cent narrower

LIVESTOCK/POULTRY                ​;                         ​;                  

​ ·         After falling 90-cents over the previous two trading days, Choice boxed beef values increased $1.16 yesterday

·         The USDA 5-area weekly average steer price for last week was $124.07, up 97-cents from the week before

·         The USDA pork carcass cutout value eased 9-cents yesterday, but is up $3.47 from a week earlier

·         The USDA’s Iowa/Minnesota average cash lean hog price fell 89-cents yesterday to $92.26

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