HIGHLIGHTS

·         Market Trend—Corn, ½ to 2 Lower; Soybeans, 10-12 Lower; Wheat, Up ½ to 1.   

·         Asian markets closed higher with the Nikkei up 1.5%; the Hang Seng gained 1%; the Shanghai Composite was up 1.2% and India’s Sensex Index jumped 2.7% after the new Reserve Bank of India governor laid out new measures. Early trading in Europe is also 1 to 1 ½ % higher.  Positive economic #’s from Japan and China as well as Russia’s efforts to reign in Syria’s chemical weapons all contributed to the gains.  U.S. stock futures look poised to follow:  Dow futures are up 74; S&P, up 8 ½ and the Nasdaq, 18 ¾’s higher.  Gold is down nearly $15/oz; energy markets are mixed and the $ Index is a 1/5 of a point higher at 81.915.

·         The past 24 hours saw more showers across the Northern Plains/Northern Corn Belt as well as C/S IL.  Outside of far ND and MN where ½ to ¾” fell, most areas received 1/10 or less amounts. Dryness remains the primary concern for the Midwest although some forecasters see the potential for limited, non-damaging frost in N MI this weekend. The next 5-7 days continue to look dry with chances improving towards the end of the period. Temps in the Central Belt will continue to be well above seasonal norms today andtomorrow.  In South America, moderate to locally heavy amounts have fallen recently over the southern wheat area, easing dryness concerns; however, the western areas are still in need of some precip, having missed the weekend rains.  

·         Sep Corn Down $.0150 at $4.7575; Dec Corn Down $.0025 at $4.6325. Funds sold 4 K on Monday  

·         Sep Soybeans Down $.1225 at $13.92; Nov SB Down $.10 at $13.4650.  Funds sold 8 K SB, 5 K SBM and 4 K SBO yesterday

·         Dec Wheat Up $.0050 at $6.2925; Mar Wheat Up $.01 at $6.4225.  The funds sold 4 K wheat to start the week   

CORN/SORGHUM

·         ATI Research: Good/Excellent corn ratings declined 2 points to 54% (vs. 22% last year), national yield down 0.8 bpa to 156.4.  Updated crop size estimate is 13.707Bbu

·         ATI Research: 12/13 corn carryout unchanged at 724mbu but 13/14 ending stocks down 69 million to 1.814Bbu

·         Corn progress: Dough, 92% vs. 99% LY; 94% avg., dent, 64%; 92% LY; 75% avg., maturity, 9%; 55% LY; 28% avg.

·         T-storm Weather: Record-setting 100s cannot be ruled today out across southern half of Iowa and into Missouri 

SOYBEANS/WHEAT

·         ATI Research: Good/Excellent soybean conditions declined 2 points to 52% (vs. 32% last year), national yield down 0.6 bpa to 41.5.  Updated crop size estimate is 3.144Bbu

·         ATI Research: 12/13 soybean carryout unchanged at 115mbu with 13/14 ending stocks dn 5 million to 123mbu

·         T-storm Weather: A few thunderstorms accompany transition to cooler weather Tuesday-Thursday but insignificant amounts are expected.  Rain may affect parts of the Midwest Sunday-Monday but heavy amounts are not expected

·         Soybean progress: Setting pods, 97% vs. 99% in ‘12, 98% avg., dropping leaves, 11%, 34% LY, 19% avg.

·         ATI Research: 13/14 all wheat carryout pegged at 535mbu with exports up 25 million vs. last week

·         T-storm Weather: Rain improves soil moisture for HRW wheat Thursday-Saturday near intersection of CO-KS-NE

ENERGY

·         Energy markets are mixed:  QCLV13, down $.67 at $108.83;  QRBV, +.0012; QNGV,-$.034 and QHOV, +$.0032

·         Cash ethanol markets were lower on Monday, ranging from a 14 cent decline in NY to more modest 1 ½ to 2 cent easing for Dallas and Tampa.  The Gulf was off 7 ½; LA fell 4 and Chicago was indicated a ½ cent lower at $2.65-$2.73

·         RINs: 2012’s gained a ¼ to 68 ½ -70; 2013’s were also ¼ higher at $.6950-$.71 and 2014’s picked up a ½ to $.69 ½-$.72

·         Ethanol supply uneasiness pulled the October RBOB/ethanol spread in nearly 5 cents to $.9204 per gallon

LIVESTOCK/POULTRY                                   &​nbsp;                       

·         Choice boxed beef values eased 90-cents yesterday and have lost $2.23 over the last three trading days

·         The USDA 5-area weekly average steer price for last week was $122.91, down 43-cents from the week before

·         The USDA pork carcass cutout value firmed 32-cents yesterday and has gained 67-cents over the last two trading days

·         The USDA’s Iowa/Minnesota average cash lean hog price firmed $1.16 yesterday to $91.36

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