HIGHLIGHTS

• MARKET TREND—Definitely higher: CU, +$.0550; SQ, +$.1675; WU, +$.07; KWU, +$.0850. EU to buy more US beans?
• MACRO:  EU likes Trump tariff relief; Zuckberburg worth a lot less ($17 billion?) as Facebook plunges 20%, projections disappoint the Street .  Asia—Lower: Nikkei, -0.12%; Shanghai, -0.71%; Hang Seng, -0.48%.  EUROPE:  Mostly Higher:  DAX,+1.36%; FTSE, -0.01%; CAC, +0.72%.  WALL STREET: Futures—Mostly lower: DOW,+38; S&P, -4.75; NAS, -60.50.  EXTERNALS: Sep crude: -$0.01 @ $69.29; Aug Gold: -$4.20 @ $1,228; Dec $ Index, -.044 @ 93.675

·       T-storm Weather: A cool front triggers some thunderstorms today across the Corn Belt, with highest coverage & amounts across KS and southern half of NE.  A moderately-cool period follows for approximately one week, after which temperatures fluctuate within a seasonable to slightly above-normal range.  Heavy rain forms along the southern edge of coolness within Fri.-Sun., especially in the central / southern Plains and Delta, but less-so in the Corn Belt where amounts of 0.25" to 0.75" are most likely

·       CU, up $.05505 @ $3.6475; CZ, up $.0550 @ $3.7875.  Fund buying was estimated at 8 K, EU and Black Sea production worries                       &nb​sp;  

• SQ, up $.1675 @ $8.7750; SU, up $.1650 @ $8.8250.  Funds: Bot 3 SB, 2 SBM, 2 SBO.  Board Crush: $1.78, +$.02; LY: $.87
• WU, up $.0675 @ $5.4950; WZ, up $.0650 @ $5.6825.  Funds bought 10 K, crop/quality worries here and in Europe              

      CORN/SORGHUM

·       Export Sales to be released at 7:30 am CDT.  Trade expects 12-28 mbu for 17/18 corn and 16-31 mbu for 18/19

• T-storm Weather: Several days of drying follow the exit of rain early next week, after which some thunderstorm clusters form in the northern Plains and Corn Belt over Aug. 2-8
• ATI Research: The model for near-term U.S. sorghum exports is 400 K bu per week, up from 200 K last week.  The new range is 0-2.3 mbu/week vs. 0-640 K last week.  Our estimate is 0-1 mbu per week compared to 3.8 mbu last year
• Ethanol grind: Total of 1,074,000 barrels/day for week end July 20—up 10 thou v. prior week and up 6.1% v. last year

SOYBEANS/WHEAT

·       Export Sales report.  Trade expects 7-15 mbu for 17/18 soybeans and 7-18 for 18/19; soymeal, 50-175 K MT for 17/18 and 0-100 for 18/19; soyoil, 8-25 K MT for 17/18 and 0-15 for 18/19  

• T-storm Weather: A total of 35% of U.S. soybean production was drier than normal over 14-day period ending Tuesday, while 28% was drier than normal over the last 30 days

·       Export Sales report.  Trade expects 7-18 mbu for 18/19 all wheat

• T-storm Weather: Drought intensifies over the next 7-10 days in/near Queensland, Australia where wheat reproduction begins next month.  Drought also continues into early August in Germany, U.K. and Denmark

ENERGY

·       Higher: CLU18, -$0.01 @ $69.29; EBU, +$0.60 @ $74.53; EBU-QCLU, +$0.61; RBU,+.0149; NGU, +.011; HOU, +.0154

·       On Wednesday, cash ethanol markets were slightly higher: Chicago was quoted at $1.43, up $0.0075; Basis to Chicago—New York, +$0.1125; Gulf, +$0.125; Dallas, +$0.09; Tampa, +$0.215; and LA, +$0.31

·       Ethanol RINs were lower on Wednesday: 2017’s down 1 ¼ at 12 ½-14; and 2018’s eased ½ to 19 ½-20

·       The August RBOB/August ethanol spread continues to widen, adding $.0255 and now at $.6981/gallon Wednesday

  LIVESTOCK/POULTRY                             &​nbsp;       

• Choice boxed beef values eased a penny on Wednesday to $204.64, and are 16-cents lower compared to last week
• ATI Research: Cattle report—the report indicated that the U.S. cattle herd continues to increase, but at a slowing pace
• USDA mandatory pork carcass cutout value firmed 4-cents on Wed. to $77.55, but is still $3.743 higher vs. a week ago
• CME Lean Hog Index fell $0.94 on Wed. to $75.23.  August futures gained $0.85, but are still $8.83 below the index

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