HIGHLIGHTS

• MARKET TREND—Firmer: CZ, +$.0125; SX, +$.0050; WZU, +$.0275; KWZ, +$.0350 
• MACRO:  solid U.S. economic performance, easing trade worries lift treasury yields but stifle investor confidence this morning; regional worries pressure Europe. ASIA: Lower: Nikkei, -0.56%; Shanghai, closed; Hang Seng, -1.73%.  EUROPE: Lower:  DAX, -0.22%; FTSE,-1.07%; CAC, -0.97.  WALL STREET: Futures are lower: DOW, -96; S&P, -13.50; NAS, -44.25.  EXTERNALS: Oct crude: -$.14 @ $72.67; Dec Gold: +$0.70 @ $1,208; Dec $ Index, -0.040 @ 95.100. Del’y: SBM 190; SBO, 556; ETOH, 136

·        T-storm Weather: Upper-level high pressure in the eastern U.S. causes a large system to stall in the west, leaving the eastern half unseasonably warm, & the western half unseasonably cool.  Until the pattern fully breaks down in 7 to 10 days, numerous waves of energy will eject into central areas & produce areas of rain and thunderstorms, followed by the passage of the main system later next week & weekend.  Very high coverage of heavy rain results into mid-month across a large swath of central U.S.

·       CZ, up $.0125 @ $3.66; CH, up $.01 @ $3.7775.  Fund selling at mid-week was estimated at 3 K                  

• SX, up $.0050 @ $8.62; SF, up $.0050 @ $8.7625.  Funds sold 2 K SB, 3 K SBM, bot 2 K SBO.  Board Crush: $1.51, -2, LY: $.91
• WZ, up $.0275 @ $5.18; WH, up $.02 @ $5.3675.  Fund selling on Wednesday—2 K            

 

CORN/SORGHUM

·       Export Sales to be released at 7:30 am CDT.  Trade expects 39-63 mbu for 18/19 corn

• T-storm Weather: 3.00”-6.00” of rain affects northwest 2/3’s of U.S. Corn Belt & eastern areas of central & southern Plains through Oct. 14; 1.00”-3.00” affect rest of the Plains & lesser totals of 1.00”-2.00” affect Delta & SE Corn Belt

·       ATI Research: Rapid development of U.S. corn crop is highlighted by level of corn maturity.  Corn mature on average increases approx. 12% over Sep. 30-Oct. 7 to approx. 83%; however, corn mature as of Sep. 30 was already at 86%

• Ethanol grind: Total of 1,015,000 barrels/day for week end Sep. 28—dn 21 thou v. prior week but up 0.5% v. last year

SOYBEANS/WHEAT

·       Export Sales report.  Trade expects 33-55 for 18/19 soybeans; soymeal, -200 - 0 K MT for 17/18 and 200-500 for 18/19; soyoil, 0-10 K MT for 17/18 and 0-26 for 18/19 

• T-storm Weather: 3.00”-6.00” of rain affects northwest 2/3’s of U.S. Corn Belt & eastern areas of central & southern Plains through Oct. 14; 1.00”-3.00” affect rest of the Plains & lesser totals of 1.00”-2.00” affect Delta & SE Corn Belt

·       Export Sales report.  Trade expects 9-20 mbu for 18/19 all wheat

• T-storm Weather: Rains break dryness across Australia wheat producing areas over the next 7 to 10 days; projected totals are 0.50” to 1.50” in New South Wales, Queensland and Western Australia

ENERGY

·       Easier: CLX18, -$.14 @ $76.27; EBZ, -$0.15 @ $86.15; EBZ-QCLX, $0.00;RBX, -0.0176; NGX, +.004; HOX, -.0078

·       Chicago ethanol was 3/8’s lower at $1.28 3/8; basis levels vs Chicago were mixed—New York, -$0.0112 @ $.0988; Gulf -1/8 @ $.0988; Dallas, +3/8’s @ $.03 1/8; Tampa, +7/8’s @ $.16 5/8’s and LA, -1 1/8 @ $.17 5/8’s   

·       Ethanol RINs were a ½ cent weaker 2017’s @ 9 ½ - 10 ½; 2018’s were @ 14 to 15            

·       The Nov RBOB/Oct ethanol spread gained $.0059 on Wednesday to+$.8258 per gallon 

 LIVESTOCK/POULTRY                                  ​    

• Choice boxed beef values fell 47-cents on Wednesday to $204.42 and are down 43-cents vs. a week ago
• Cash cattle trading remained undeveloped at midweek; asking prices are $114 to $115 live & $180 & higher dressed
• USDA mandatory pork carcass cutout value declined $1.17 on Wed. to $78.44 and is $1.19 lower vs. last week 
• CME Lean Hog Index gained $0.91 on Wed. to $68.84.  October futures firmed $1.05 but are $1.365 below the index   

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