HIGHLIGHTS

• MARKET TREND—Firmer:  CU, +$.02; SU, +$.0375; WU, +$.0625; KWU, +$.0425
• MACRO:  Markets are generally lower with reasons being cited include difficulties in the EU/Brexit negotiatons; sanctions on Iran reducing world oil supplies.  Asia—Mostly weaker: Nikkei, +0.09%; Shanghai, -1.14%; Hang Seng, -0.89%.  EUROPE:  Lower:  DAX, -1.06%; FTSE, -0.69%; CAC, -0.48%.  WALL STREET: Futures are lower:DOW, -98; S&P, -7.50; NAS, -19.50.  EXTERNALS: Oct crude: +$0.25 @ $69.76; Dec Gold: -$3.00 @ $1,209; Dec $ Index, +0.023 @ 94.120

·       T-storm Weather: Cool and hot air continually battle for position across the central U.S. over the next 10 to 14 days.  The fluctuating locations of each air mass cause small-scale waves of energy and large-scale storm systems to spin-up and trigger thunderstorms in varying areas each day, resulting in 2.00" to 4.00" within the northwest two-thirds of the Corn Belt, and 1.00" to 2.00" elsewhere (including a mix of all corn and soybeans, and most HRW wheat and SRW wheat areas)

·      CU, up $.020 @ $3.4325; CZ, up $.0175 @ $3.5820.  The funds were even in mid-week trading          

• SU, up $.0375 @ $8.27; SX, up $.0375 @ $8.3975.  Funds: bot 1 SB, 1 SBM, sold 2 SBO.  Board Crush: $1.50, -1, LY: $.98
• WU, up $.0625 @ $5.22; WZ, up $.0450 @ $5.4625  Funds bought 10 K as rumors of Russian exports limitations re-surface           

 CORN/SORGHUM

·      Export Sales to be released at 7:30 am CDT.  Trade expects 4 to 12 mbu for 17/18 corn; 24-39 for 18/19

·      T-storm Weather: Starting in 10 days or so, heat across U.S. Corn Belt is likely to diminish because mid-Sep. is climatologically cooler than late Aug., but some rains are expected to continue as cool fronts to pass every few days

·      Consultant: Harvest of Brazil’s 2017/18 safrinha (double crop) corn is approx. 90% complete with the last remaining large areas to harvest being the state of Parana.  Planting of 2018/19 full-season corn is underway in southern Brazil  

·      Ethanol grind: 1,070,000 barrels/day for week end Aug. 24—down 0.3% vs. last week but 2.7% higher vs. last year

SOYBEANS/WHEAT

·      Export Sales report.  Trade expects 0 to 9 mbu for 17/18 soybeans; 18-37 for 18/19; soymeal, 50-350 K MT for 17/18 and 200-400 for 18/19; soyoil, 0-15 K MT for 17/18 and 0-20 for 18/19 

·      T-storm Weather: The potential for field flooding will be monitored in the Corn Belt going forward after heavy rain this week in IA, IL, MO, WI and parts of MN

·      Export sales report: Trade expects 7-18 mbu for 18/19 all wheat

·      T-storm Weather: While some showers affect Australia wheat over the next 5-7 days, drought remains moderate to severe to intense away from Western Australia

ENERGY

·      Mixed: CLV18, +$0.25 @ $69.76; EBV, +$0.30 @ $77.44; EBV-QCLV, +$0.04; RBV, +0.0074; NGV, +.019; HOV, +.0051

·      On Wednesday, cash ethanol markets were weaker: Chicago was quoted at $1.2750, down $0.02625; Basis to Chicago—New York, +$0.082; Gulf, +$0.085; Dallas, +$0.02; Tampa, +$0.155; and LA, +$0.225

·      Ethanol RINs were steady to higher on Wednesday: 2017’s unchanged at 14 ½-15; but 2018’s firmed 1/8 to 20 ¼-20 ¾

·      The September RBOB/September ethanol spread surged wider on Wednesday, expanding $.0693 to $.8480/gallon  

 LIVESTOCK/POULTRY                             &nbs​p;         

• Choice boxed beef values firmed 15-cents on Wednesday to $212.68 but is still $1.36 lower vs. a week ago
• October 2018 live cattle futures on Wed. closed at $108.70; one year ago, October 2017 futures settled at $106.125
• USDA mandatory pork carcass cutout value fell 41-cents on Wednesday to $63.48 and is down $1.57 vs. last week 
• CME Lean Hog Index fell $0.64 on Wed. to $46.45.  October futures eased $0.45 but are still $5.10 above the index 

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