HIGHLIGHTS
· Market Trend: Corn, 1-2 Lower; Soybeans, 3-4 Higher; Wheat, 1-2 Lower
· World stock markets are generally higher ahead of Federal Reserve comments later today, postulating it will be in no hurry to raise interest rates. Reports that China’s central bank will inject $81 billion to 5 state banks didn’t hurt either. Shanghai closed up .52%; the Hang Seng gained 1% but the Nikkei slipped .14%. All of Europe is higher, led by a .73% gain in the CAC-40; the DAX is up .49% and the FTSE, +.30%. Pre-markets in the U.S. have the Dow up 7; the NAS is 3 lower and the S&P, +.50. The $ Index is up .049; gold is $1.50 higher and energy futures are mostly higher
· T-Storm Weather: A cool front triggers a round of thunderstorms from the central / southern Plains, Corn Belt, and Delta within Friday-Sunday, temporarily slowing corn / soybean harvesting and wheat planting rates. A sustained period of drying precedes and follows rain as areas of high pressure dominate. After the cool front passes, sharp cooling briefly unfolds early next week, resulting in a low to very low chance for frost across the northeast half of corn and soybeans. Otherwise, temperatures generally average warmer than usual over the next 14 days as upper-level high pressure in the west drives North America weather
· Dec Corn Down $.0175 at $3.42; March Down $.0175 at $3.54. The funds sold 2 K Tuesday
· Soybeans Up $.0325 at $9.94; Jan Up $.0350 at $9.9275. The funds bought 4 K SB, 1 K SBM and 2 K SBO yesterday
· Dec Wheat Down $.0150 at $4.9475; March Down $.0150 at $5.1125. The funds sold 2 K
CORN/SORGHUM
· ATI Research: Foreign corn prices continue at sometimes sharp discounts to the U.S.
· T-storm Weather: Rain of 0.67”-1.33” Friday-Sunday slows corn harvest in central/southern Plains, Corn Belt & Delta
· Private crop consultant notes that all the estimates coming out of Argentina point to a lower corn acreage in 14/15 with reductions ranging from 6% to 25%
· Ethanol margins: $0.72 per gallon vs. $0.89 last week but above $0.64 in 2013. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· ATI Research: U.S. soybeans remain the lowest price origin in the world export market
· Private crop consultant: Ample evidence Brazilian farmers will switch some full-season corn acres to soybean in 14/15
· ATI Research: 4-week export sales total of U.S. HRW wheat is 17mbu—down 62% vs. the 10-year avg. & an 8-year low
· T-storm Weather: Dryness concerns do not exist for U.S. HRW and SRW wheat planting and growth because only 4% of each crop was drier than average over the last 90 days
ENERGY
· Futures are mostly firmer: QCLV14, +$0.01 at $94.89; QRBV,+$0.0117; QNGV, -$.024; andQHOV, +$.0052
· Cash ethanol markets were mostly slightly higher on Tuesday: Chicago up 1 ½; New York gained 1; Dallas and Tampa added ½; Gulf climbed 3; and LA was 6 ¾ lower at $2.00 ¾ per gallon
· EIA estimates (API): crude, -1.2 mb (+3.3); gasoline, unch (-1.2); distillates, +0.4 (+1.0)
· Minor gains in RINs: 2012’s up ½ at 44 ½-45 ½; 2013’s added 7/8 to 45-46; and 2014’s were 7/8 higher at 45-46
· The October RBOB/Ethanol spread gained another ½, to $.7148/gallon
LIVESTOCK/POULTRY  
· Choice boxed beef values fell $1.38 yesterday and have lost $3.90 over the last three trading days
· Cash cattle markets are quiet with feedyards asking $164, but no packer reported. Cattle traded LW at $160 to $162
· The USDA pork carcass cutout value increased $2.07 yesterday and has gained $4.64 over the last two days
· CME Lean Hog Index up $0.96 to $103.22. October futures up $0.80 to $106.875 and are $3.655 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather